Sean C. Morgan
Of The New Era
City Manager Craig Martin on Thursday presented a $26.6 million budget proposal for 2008-09 that maintains current service levels, while paying for a new water treatment plant.
“Funding has been proposed for the construction a new water treatment plant, revitalization efforts for the downtown and commercial areas, continued upgrades to our parks and improvements to several city facilities,” Martin said in his budget message.
The budget, $26,595,000 is $351,000 lower than the 2007-08 budget. Approximately 17 percent, $4.4 million, of the budget pays for personnel, 62.8 positions, and personal services. Materials and services represent 14 percent of the budget at $3.8 million. Capital outlays, including $8.9 million for the treatment plant, are 43 percent, $11.4 million, of the budget. Debt service, transfers, contingency funds, reserves and ending fund balances are about 26 percent of the budget.
The capital outlays budget shifts largely from more than $6 million in wastewater collection to the water treatment plant at nearly , which includes more than $4 million carried forward from 2007-08.
This year, the city is committing $121,000 in various funds to support economic development in the community, Martin said. It also implements the city’s new storm water drainage utility.
The budget includes continued funding for a school resource police officer, Martin said. The position was created last year in partnership with School District 55, which is proposing a budget of $42,000 to pay for its share of the position.
Property taxes provide about 10 percent, $2.6 million, of the budget. Utility rates provide 11 percent, $2.8 million. Fees, grants, loans and service charges are 42 percent, $11.3 million, of the budget.
Beginning fund balances, money received but not spent in 2007-08, total about 37 percent, $9.8 million, of the budget. A portion of the total budget, $3.3 million in this budget, is held in unappropriated ending fund balances and carried over annually. Typically, as is the case this year, ending fund balances are larger overall than the budgeted figure.
The value of taxable property in Sweet Home increased an estimated 5 percent over 2007-08, Martin said.
In recent years, the general fund has been used to supplement the Police Department. The Public Library and the Police Department both receive less money than they would expect to receive based on their tax rates due to property tax rate caps. The effect is called compression.
In the 2008-09 budget, for example, the police levy, $6.40 per $1,000 of valuation, imposes $2.2 million in taxes, but because of the compression, the department will receive only $1.8 million.
The compression wasn’t as severe as anticipated in 2007-08, Martin said, and the department received about $165,000 more in taxes than the city budgeted. Based on the projected increase in property values and the unexpected property tax revenue in the 2007-08 budget, the Police Department will receive no fund transfers from the general fund.
“The proposed 2008-09 budget I give you this evening represents a significant investment in the community,” Martin told the City Council. “The city, as an organization, looks forward to helping the community improve the presentation of Sweet Home for visitors, newcomers and longtime residents by specifically earmarking resources in this budget.”
Over the next couple of weeks, the Budget Committee will convene to review specific funds within the proposed budget. Upon completion of the review, the Budget Committee may make changes to the proposal, and then it may approve the proposal, making a recommendation to the City Council for approval in June following a public hearing.
The budget takes effect at the beginning of the fiscal year on July 1.
Budget Committee members include the City Council: Rich Rowley, Eric Markell, Jim Bean, Jim Gourley, Mayor Craig Fentiman, Scott McKee Jr. and Greg Mahler. It also includes seven citizen members: Al Culver, Harold Haight, Dave Holley, Dan Holman, Max Thompson, Josh Victor and Mona Waibel.