Sean C. Morgan
Of The New Era
Increased building activity in Sweet Home is expected to boost tax revenue, and city officials are banking on that as they have proposed two new full-time positions in the proposed budget for 2007-08.
The budget proposal includes a .1 full-time equivalent addition to parks, a new office position in the building department and a new school resource police officer to be split with School District 55 if the district buys into the plan.
The budget proposal was provided Thursday night during the first Budget Committee meeting of the year.
The committee will meet again on Thursday at 6:30 p.m. and then again on May 1 and May 2. It may meet on May 17 if necessary.
Josh Victor was named chairman of the committee after serving in the position last year.
The budget is $4.16 million larger than the current 2006-07 budget, which ends on June 30, an 18.1 percent increase. The budget totals $27.1 million, the increase largely reflected by capital expenditures and depreciation in the city’s sewer andwater utilities.
“During the 2007-08 fiscal year, we expect tax revenue to increase as property values increase as a result of the significant increase in sales and development throughout Sweet Home,” City Manager Craig Martin said, delivering his annual budget message. “The major boost of development brings with it increases in population and a 32-percent increase in building permit activity, Public Works development fees, increased franchise fees from franchised utilities, more state shared revenues and increased water and wastewater utility service fees.”
The proposed budget shows a shift in personnel costs to materials and services, where the water and wastewater treatment plants are now operated under contract, Martin said. Capital purchases and projects are higher, along with debt service payments to begin paying off loans from the state for sewer projects.
The city’s debt service payments will climb as the city continues its sewer rehabilitation projects, he said.
The city cannot control all expenditures, Martin said, but officials have been able to look for cost-effective changes in how they do business. Contracting with OMI to operate its treatment plants is one example.
Operating the Police Department will require the $1.47 million generated by the city’s local option levy along with a $333,000 transfer from the General Fund, which is built mainly from property taxes and franchise fees. The General Fund is proposed at approximately $3.1 million.
The police budget is proposed to increase from $2.6 million to $2.7 million. It was $2.6 million in 2005-06.
The library will receive a boost to the $143,000 it will receive in local option levy money with a $34,000 transfer from the general fund. This will be the first year in the past decade at least that the city has transferred General Fund money to pay for library operations.
The library budget is proposed to increase from $199,000 to $259,000. In 2005-06, it had a budget of $225,000.
The personnel increases include an increase to the parks maintenance position from .75 FTE to .85. The Building Department will receive a new office support position.
The school resource officer depends on whether District 55’s Budget Committee and School Board approve of its funding and also on whether the city’s Budget Committee and City Council approve it, along with the rest of the budget.
All employees are budgeted to receive 4 percent “cost-of-living” increases in 2007-08, Martin said. Additional personnel costs will include retirement for part-time librarians, parks maintenance and the janitor position. It also will include a new “retirement cash-out” line for police employees who will be able to cash out 30 percent of accrued sick leave upon eligible retirement from city service.
Last year, the city ended up with a 2-percent reduction in insurance benefits, Martin said, but the city’s insurance service has announced a 15-percent increase for 2007-08. Employees pay 5 percent of their premiums.
“The proposed 2007-08 budget I give you this evening is progressive and far-reaching as the city, as an organization, begins to reinvest in itself with some benefit increases for employees, increases in capital purchases and some new and innovative ways of doing old-fashioned business,” Martin said. “We recognize that our customers come first and based upon our current building and development activities, we anticipate having many more customers to keep us busy in the immediate future.”
After consideration, the Budget Committee makes a recommendation to the City Council, which typically holds a public hearing and approves the final budget near the end of the fiscal year on June 30.