Benny Westcott
City Manager Pro Tem Christy Wurster on Wednesday, April 6, delivered the annual budget message to the city’s Budget Committee.
Committee members received copies of the 2022-23 city budget proposal and were scheduled to begin deliberations about it this week, with possible approval next week. The proposed budget is $28,609,139, down from $36,286,140 in 2021-22.
“We are fortunate to be financially stable over the next five years to be able to complete several capital projects,” Wurster said. “We will need to remain conservative in our decision-making to ensure we are able to maintain adequate reserves in the event unforeseen revenue losses take place or unanticipated expenses occur.”
The budget recommends reducing the police levy $1.55 per $1,000 assessed value (AV) to $6.30 per $1,000, instead of the current $7.85. Wurster explained that the recommendation is based on a healthy beginning police department fund balance in fiscal year 2022-2023 compared to the 2021-2022 adopted budget. Several staffing vacancies in the department remain unfilled, resulting in overall savings as expenses are projected to remain primarily stable with prior years.
The budget includes an appropriation of $220,000 for projects to upgrade some of the department’s aging infrastructure. This includes replacing a patrol vehicle and radio-system repeater, plus building improvements at the 20-plus-year-old facility.
The city’s total proposed general fund budget for FY 2022-23 is $3,697,717, which represents a decrease of $161,489 from 2021-22.
“The decrease in expenditures is required to ensure that the city can maintain a six-month operating reserve over the next five fiscal years,” Wurster explained.
She said that some staffing previously assigned within the general fund is now budgeted in the funds that more closely align with its work in the next fiscal year.
Some $170,000 is budgeted in capital outlay in the general fund to cover the costs of improvements in Northside Park, City Hall Park and benches at Hobart Natural Area, as well as to the dog park. An additional $50,000 is appropriated toward City Hall building improvements. Funds are also set aside to address security at the yet-to-be constructed transitional housing site, to be owned and managed by the Lebanon-based Family Assistance & Resource Center (FAC) group.
The city’s fixed property tax rate is $1.4157 per each $1,000 of assessed valuation. The proposed budget projects just under $740,000 in current-year property tax receipts in the general fund. This is a projected increase of approximately $10,000 above the city’s estimates in taxes to be received in the current fiscal year.
The budget estimates a slight increase in property taxes received by the library fund this year. Revenue within it remains stable based on the levy rate of $1.17 per $1,000 AV. Expenses are anticipated to be slightly higher this year, primarily because the budget appropriates $100,000 toward the cost of an architect to prepare preliminary concept drawings of a future library once the Sweet Home City Council has determined its future location. In addition, the fund includes a transfer of $289,510 to the capital fund for future improvements.
The FY 2022-23 budget does not propose increases in any of the rates furnishing the water, sewer and stormwater funds.
Wurster said that the water fund’s highest priority projects include the replacement of small-diameter water mains around the city and the installation of a generator at the Water Treatment Plant. The City Council has selected these projects to be funded with American Rescue Plan Act (ARPA) funds.
Sewer-fund priorities include a complete Wastewater Treatment Plant renovation. The city was previously awarded $2 million in lottery funds in the 2017-19 biennium and $7 million in 2019-21, which was extended to the 2021-23 biennium to begin this project through the state’s general fund. In addition, the city learned in March that the U.S. Environmental Protection Agency will help fund these improvements with $30 million from the Clean Water State Revolving Loan Fund.
“There may be some potential eligibility for principal forgiveness and the city will receive more information in the coming months on how much of these loan funds will be forgiven,” Wurster said. “The City of Sweet Home is incredibly grateful to the state and federal agencies that have contributed to this project that will bring us into compliance with the Clean Water Act.”
Wrapping up her budget message, Wurster noted that city staff in 2021-22 successfully refinanced the debt associated with $5.8 million, which will result in $769,000, or 12.1% of savings, over the life of the loans.
The Budget Committee elected Josh Thorstad to serve as chairman and Kenneth Hamlin to serve as vice chairman.
Committee members present at the meeting were councilors Diane Gerson, Dave Trask, Lisa Gourley, Angelita Sanchez, and Susan Coleman; Mayor Greg Mahler; and citizen member Josh Thorstad. Absent was Councilor Dylan Richards and citizen members Bob Briana, Derek Dix, David Lowman and Kenneth Hamlin.
The Budget Committee next meets Tuesday, April 19. Additional meetings are scheduled for April 20 and April 28. All meeting times are at 6 p.m. Meetings are open to the public.