While other government agen-cies are looking at deep cuts in the 2009-10 fiscal year, the city of Sweet Home has not been adversely impacted by the economy, officials say.
“City services and their companion staffing levels are anticipated to remain essentially the same during 2009-10 and hopefully reversing staff reductions already made within our building inspection program due to decreased building activity,” City Manager Craig Martin told the city budget committee Thursday night. “The city finds itself in this fortunate situation as a result of already having relatively lean staffing levels, coupled with conservative budgeting and financial controls in contrast to other government organizations.”
Tough economic times in the past, including the downturn in the timber industry in the 1980s, property tax limitations passed by voters in the 1990s and an unexpected reduction in property values in 2003, have had a direct influence on the city’s ability to maintain relatively lean staffing levels, Martin said in his budget message.
In recent years, the city has carried forward almost a third of its resources from the year before, Finance Director Pat Gray said. This year, the city will carry forward $8 million, 33 percent of its resources for 2009-10.
Some budgetary increases are necessary to comply with labor contract obligations and cover increasing prices for supplies and services, Martin said.”Given our history of relatively conservative staffing and budgeting, we believe we are in a position to absorb these costs over the next few budget cycles, even if the current economic conditions continue for an extended period of time.”
The total budget for 2009-10 is proposed at $24.2 million, a $2.4 million reduction from the 2008-09 budget.
Personnel represent 18 percent of the city’s expenditures at $4.5 million. Materials and services represent 16 percent of the budget at $3.8 million. Capital outlays are 35 percent of the budget at $8.4 million. Debt service, transfer from one fund to another, contingencies, reserves and ending fund balances comprise the remaining 31 percent of the budget.
Property taxes provide $2.6 million, 11 percent, of resources for 2009-10. Utility fees represent 13 percent of budgeted resources at $3.1 million while fees, grants and service charges represent 43 percent at $10.4 million.
The budget includes $50,000 in economic development funds to assist in local economic revitalization efforts.
The total number of full-time equivalent positions remains at 62.8.
Some $5 million in loans and grants have been budgeted to begin the fourth phase of inflow and infiltration repairs in the sewer system.
The city has agreed to cover half the cost, approximately $40,000 of the school resource officer, Martin said.
School District 55 is still deciding whether to fund its half of the costs for the officer, Police Chief Bob Burford said.
The district also has asked the city for $10,000 to help operate the pool next summer.
Police Department employees will receive a 3-percent raise in the first half of the 2009-10 budget and a 2-percent increase during the second half of the budget year. Subject to council approval, non-union employees will receive the same pay increases.
General union employees will receive a 2-percent raise in the first half of the year and another 2-percent raise in the second half.
The city has budgeted a 15-percent increase in health insurance benefits, Martin said. The rate has not been set, but it is expected to be less than 15 percent.
“In spite of the uncertainty and turmoil surrounding our nation’s economic future, city leadership remains optimistic about our future as a community and organization serving the citizens of Sweet Home and us,” Martin said. “Our past and future investments in this community, including the new water treatment facility, significant wastewater infrastructure repairs, recent economic revitalization programs, a new Public Works maintenance facility and our improving system of parks and trails are all indicators that this city is financially healthy and looking forward to serving the needs of the community into the future.”
The city’s budget committee includes the City Council, including Mayor Craig Fentiman, Jim Bean, Laure Fowler, Jim Gourley, Scott McKee Jr., Greg Mahler and Eric Markell, and seven residents of Sweet Home, including Al Culver, Harold Haight, Dave Holley, Dan Holman, Ronald Rodgers, Rich Rowley and Max Thompson.
The budget committee will meet on April 30 to review the general fund budget, on May 5 to review the police and library fund budgets and on May 7 to review the Public Works budget. Typically, the budget committee approves a budget after finishing these reviews. An additional meeting is scheduled for May 14 if necessary and the committee does not approve a budget before then.
All meetings are at 6:30 p.m. in the City Council chamber.
The committee’s approval is a recommendation to the City Council, which must adopt a budget before June 30, the end of the 2008-09 fiscal year.