Sean C. Morgan
City Manager Craig Martin has proposed transferring $500,000 to the police department in the 2015-16 Sweet Home city budget to cover a shortfall that has loomed for several years, while overall, the city’s short-term financial outlook has improved.
Martin presented the budget proposal to the city’s Budget Committee on April 23.
The total budget is $20.3 million, approximately $992,000, which is a 5 percent increase over the 2014-15 adopted budget of $19.3 million.
“While this increase may seem significant, I am pleased to report that the majority of the overall increase is reflected in the proposed ending fund balances,” Martin said. Of the total increase, $210,000 is in personnel services, $310,000 in materials and services and $586,000 in contingencies and ending fund balances. Proposed capital outlays decreases by $119,000.
The proposed budget assumes, based on Linn County estimates, that property values will increase 2.5 to 2.75 percent, Martin said. The city used a 2 percent estimate to develop property tax projections in the general, police and library funds.
Savings by staff during the 2014-15 budget year have helped to boost beginning fund balances across all funds for 2015-16, Martin said, while revenues from franchise fees, court fees, state shared revenues and property rental income are expected to increase by $93,000.
The budget includes increases in water and wastewater revenues, Martin said, although user rates used to generate those revenues are not yet finalized.
The budget proposes reinstating the School Resource Officer position cut several years ago with the expectation that the Sweet Home School District will pay half of the additional cost, Martin said. The cost of the position is $84,000.
Personnel services expenditures were relatively flat in 2014-15, the current fiscal year, which ends on June 30, Martin said. “This, unfortunately, is not the assumption for 2015-16.”
Public Employees Retirement System (PERS) rates for police officers are expected to increase on July 1, Martin said, and medical insurance rates are expected to increase by 17 percent on Jan. 1. Labor agreements and approved wage scales include 3-percent increases during the 2015-16 fiscal year.
Materials and services will increase due to general increases for common expenditures like utilities, fuel and operational supplies, Martin said.
During the 2015-16 fiscal year, the city will need to ask voters to renew local option levies for the police and library services, Martin said. Those levies expire on June 30, 2016.
Also, the city will need to bargain with its employees, whose contracts expire on June 30, 2016.
Also, the city has some facility needs.
“The modular building Municipal Court and the City Council is housed in has well outlived its life expectancy,” Martin said. “The need to consider either significant renovation of the structure or an addition or renovation to other existing facilities will need to be addressed during this upcoming sical year.”
The issue has been discussed before, he said, but city officials will need to explore and present options to the council for consideration during the next fiscal year.
“The short-term financial outlook for the city is much improved in comparison to past years, due to continued economic recovery from the recession,” Martin said. “The general economic recovery, coupled with our continual cost-saving efforts during the past several years, have helped the city become more financially stable.
“The net result of these internal cost-control efforts and positive external budget influences have helped the city be in a position to continue providing quality and efficient municipal services to Sweet Home citizens.”
The Budget Committee is scheduled to meet up to four times, beginning at 6:30 p.m., on May 5 to discuss the police and library funds, on May 11 to discuss Public Works funds, on May 13 to discuss the General Fund and debt service funds and on May 14, if needed.
The committee elected Stefanie Gatchel as chairwoman and Gerrit Schaffer as vice chairman.
After reviewing the budget in detail, the Budget Committee will consider approving it. Upon approval, the budget moves to the City Council for adoption before the end of the 2014-15 fiscal year on June 30.
For more information or to view a copy of the budget, visit the city manager’s office in City Hall at 1140 12th Ave. or call (541) 367-8969.