City budget increases from sewer project

An early look at the city budget shows an increase in overall appropriations, but most spending is expected to remain the same in the 2009-2010 budget.

Spending last year totaled $9.3 million, while this year its expected to rise to $10.3 million. Spending this year, however, includes portions of a large upgrade project at the city's Wastewater Treatment Plant. At completion that project is expected to cost about $3.5 million.

Tuesday the City Council got a quick look at the preliminary budget. The council will hold a public hearing on the budget during its Sept. 21 meeting.

City staff presented an overview of the budget, which was finalized earlier in the day. The budget has been delayed while the city waited for information from the state Department of Revenue. A more detailed report is expected at the next meeting .

The city saw a 2 percent increase in the number of mills this year because of its increase in tax value. The preliminary budget shows the city using the total available mills.

City Finance Director Susan Nicosia told the council some cuts will still be needed before the final budget is approved, but that concessions have already been made.

"The budgets reflect significant cuts from the department budget requests," she said.

A slowdown in the construction industry has been reflected in the budget after the city has seen a slowdown in planning work and building permits.

While most spending stayed the same or showed slight decreases, the planning and zoning department showed significant changes.

Revenue in the planning department is expected to be 67 percent of what it was in the previous budget. That change is reflected in an expected drop in planning fees.

Spending in that department is also anticipated to decrease by nearly half. The city was forced earlier this summer to eliminate the planning clerk position because of a lack of activity in the department.

Revenue from building permits is predicted to decrease to its lowest level in the last five years.

While those decreases effect this year's budget, next year's budget may be even harder hit because of slowed growth.

Nicosia said it takes about 18 months for new building to get onto the tax rolls so this year's budget was bolstered by previous growth.

The city might not be so lucky in the future.

"Next year we'll see significant reductions in revenue," said City Manager Bill Shaw. "This year has been reasonably good because of all the new building in the last three or four years is now coming on the tax roll."

One area where the city does expect to increase spending is in the parks and recreation department. Currently, $52,000 is allocated to be spent in 2009-2010 on park improvements.

Those upgrades include $12,000 for a parking lot at River's Edge Park and $20,000 for underground sprinklers at Horine Park. Another $20,000 is expected to be spent on Rivers' Bend Park.

In other capital improvement projects, the preliminary budget shows $108,000 for work on City Hall and the Fire Hall. That includes a wiring project at City Hall and upgrades to the heating and cooling systems at City Hall and the Fire Hall.

City Hall has been in need of several repairs or upgrades for several years. Most years those upgrades are moved into future planning because of a lack of funds.

In other news:

• Awarded a bid for expansion and upgrades at the Wastewater Treatment Plant. The bid went to Swank Enterprises for $2.537 million. Once completed the plant should be able to last for 15 years without any other construction.

• Appointed Malcolm Thompson to fill a vacancy on the Tree Board.