Sean C. Morgan
The City of Sweet Home Budget Committee voted 9-0 on May 13 to approve a recommended budget for 2015-16 after considerable discussion and some minor changes.
The $20.3 million budget now moves to the City Council for a public hearing and adoption on June 23. The city must complete its budget for fiscal 2015-16 by June 30. The new budget takes effect on July 1.
In its approval, the committee stripped funding for construction of a foundation for the old Oregon Electric railroad depot, which is being used for storage by Public Works. Public Works Director Mike Adams had requested $30,000 for the project, one of the options the council might choose.
In 2014, Maintenance Supt. Pat Wood led an effort to save the depot before Bi-Mart began construction in the 2000 block of Main Street. The depot had previously been moved to make room for McDonald’s. The city and volunteers, including the Melcher family, pulled the depot to the Public Works facility off 24th Avenue.
Adams has been exploring options for the building. Lacking any decisions to restore, move or otherwise use the building, it serves as storage.
Councilor Jeff Goodwin suggested reducing funding for that project and spending it in parks improvements.
The committee also agreed with Goodwin that the city should start putting money away now to replace the Police Department’s radio equipment, which is 10 to 12 years old now with a lifespan of about 15 years, according to Police Chief Jeff Lynn.
At some point, the department will need to move to digital radios, Goodwin said, and the upgrades will cost $120,000 to $150,000.
The committee agreed to put away $45,000 in the equipment reserve fund to prepare for the expenditure. Committee members reduced the amount budgeted for the ending fund balance by $45,000.
Goodwin noted that the budget estimates tax revenues conservatively, planning for a 2-percent increase, under-budgeting compared to the 2.75-percent estimate from Linn County.
He also proposed other changes – adding a police officer and removing funding for a possible construction project to move Municipal Court to the Police Department building; but after discussion the committee unanimously chose not to implement most of them.
“We have some additional money,” Goodwin told the committee. “This is a good thing. I think saving money is extremely important, but I think it is equally important to make sure that those who pay taxes today receive the benefit of those taxes today. Excess savings works to tax those living in Sweet Home today to benefit those living in Sweet Home tomorrow. Spending by city government can also result in economic growth for the city as a whole.”
Committee members were reluctant to fund an additional police officer with the upcoming local option levy election, November.
“This levy, you can flip a coin,” said Councilor Dave Trask, saying he has concerns about the levy not passing and the city losing officers it already has.
Goodwin suggested making it a goal to add another police officer next year instead.
Regarding the Municipal Court project, Susie Ford said that she supported moving the court based on safety concerns raised by Finance Director Pat Gray, and staff members told the committee that any decision to move forward with the construction project, including $500,000 for construction and about $63,000 for engineering, would need council approval.
Goodwin said he would like the council to consider options for the court, which is housed in a modular building that the city leased in 1996 as temporary quarters for the Police Department.
Councilor Bruce Hobbs said that budgeting the funds doesn’t mean the city will spend them. He pointed to the water filling station project that has been in the budget for several years but has not been built.
But if the funds aren’t budgeted, the council won’t have the option of spending them if it decided it wanted to move ahead with a project like moving the Municipal Court, said City Manager Craig Martin.
Goodwin said he isn’t opposed to leaving the door open for the project, but he wanted to make sure the council carefully evaluates more options first.
It’s got to go to the council first, said Councilor Greg Mahler.
“We can say yea or nay on that,” said Councilor Dave Trask.
Voting yes on the budget were councilors Mahler, Ryan Underwood, Hobbs, Trask and Goodwin along with committee members Ford, Leanna West, Stefanie Gatchell and Gerritt Schaffer.
Absent were Mayor Jim Gourley, Councilor Marybeth Angulo and Zach Lincoln.
Prior to approving the budget, the committee considered the General Fund. On May 11, the committee considered the Public Works funds.
Public Works
The Water Fund will increase from $2 million, to $2.16 million. If the council approves, it would increase revenue from user fees from $1.75 million to $1.98 million. Personnel expenditures increase from $539,000 to $558,000. Materials and services increase from $661,000 to $681,000. The ending fund balance will increase from $3,000 to $115,000.
The wastewater fund will increase from $2.3 million to $2.7 million, with user fees generating $2.58 million, up from $2.3 million. Personnel costs increase from $583,000 to $601,000. Materials and services increase from $633,000 to $648,000. The ending fund balance increases from $59,000 to $395,000.
General Fund
The General Fund budget increases from $3.66 million to $3.9 million.
Revenues include a $1.8 million beginning fund balance, up from $1.6 million. Tax revenues increase from $488,000 to $522,000, while other fees and revenue sources increase from $1.19 million to $1.29 million.
Most spending increases are relatively small.
The parks program increases from $154,000 to $171,000. Most of that increase is in professional services costs.
Most of the increase in General Fund spending is in non-departmental spending, including professional services, increasing from $30,000 to $100,000 to handle potential litigation and collective bargaining. It also includes an increase from $50,000 to $100,000 for upgrades to City Hall and the City Hall Annex, the modular building currently housing Municipal Court. The city has budgeted funds in this area before but expended nothing in 2013-14 and just $2,665 in 2012-13.
The General Fund ending fund balance increases from a budgeted $919,000 to $1.08 million.