Castle Rock outlines plan to cut city spending
Tuesday, November 25, 2008 6:06 PM PST
By Barbara LaBoe
Printable version
E-mail this articleCASTLE ROCK — The City Council here will cut services, raise fees and borrow from its other accounts to make up the nearly $500,000 deficit for the 2009 budget, council members decided Monday.
The budget has not been adopted and still faces a public hearing and council vote in December. But, council members hammered out an outline during a workshop meeting.
The city already had chipped away at roughly half the deficit with cuts and reductions in services. Monday, officials had $236,000 left to cut. The council decided against selling or mortgaging any of its property and instead decided to raise fees and borrow from other city funds. The exact amount to be borrowed hasn’t been calculated.
State law allows for such borrowing as long as the money is paid back within three years at market interest rates, clerk Ryana Covington told the council.
Council members felt the market was too bad to sell property and also said they believe the city is on the cusp of development that will increase its tax base. A 14-home housing project is expected to be built in 2009 and several other areas likely will be developed, council members said.
“We’re right there, we’re right on the bubble,” Councilman Jack Reilly said. “And if we can make the adjustments ... I think by summer or fall next year we’ll start to seeing an increase.”
The council discussed cutting staff or asking staff to take pay cuts, but decided against that at this point, in part because it would be difficult to renegotiate union contracts. Councilmembers also said they don’t want to reduce staff because they think that will hurt city growth.
To balance the general fund budget the council and city managers:
• Moved public works costs out of general fund and into water and sewer budgets. It’s also possible part of Covington’s salary will be paid out of those other funds because she supervises part of the operations. Public Works Director Dave Vorse already is paid out of those funds.
• Cut one seasonal part-time public works employee and eliminated hours on another. Also, several street and water main projects were scaled back or eliminated.
• Reduced a cost-of-living raise to the six nonunion employees — including three department heads — from 5.6 percent to 3 percent. Councilman Mike Mask argued against any raise, saying residents will “flip their lid” and are still upset about last year’s raises. Councilman Khembar Yund, though, said it’s not fair for city employees not to get something. and their day-to-day costs also are increasing. The rest of the city employees have negotiated raises through their unions.
• Raised the city’s business license fee from $25 to $75, in line with several other cities in the county. This is expected to raise $5,000 a year.
• Increased the city’s building permit fee to the 2008 level of Cowlitz County. The county is increasing its fees — which vary based on assessment — 5.6 percent this year which will keep Castle Rock below the county level. This is expected to raise $10,000.
• Agreed to consider raising the city’s utility tax from 5 to 6 percent, depending on how it would affect the city’s water and sewer rates.
• Adjusted some city revenue projections to match with this year’s current collections. The council rejected a plan to reduce the city’s ending fund balance from $150,000 to $120,000, though, saying that could jeopardize the city’s ability to pay its bills on time. The city already has reduced the balance — the amount used to cover day-to-day operations until tax revenues come in — from $357,000 budgeted in 2008 to $150,000 in 2009.
• Heard from Wayne Lunday of Quaife’s Insurance about possible changes to the city employee medical insurance plans. Lunday estimated he can save the city about $100,000 in costs and provide the same or better plans for employees.
The city’s overall budget, including grants and other funds is $10 million. The general fund used for much of the day-to-day expenses initially was budgeted at $1.5 million and had to be trimmed by $498.041.
EyesWideShut wrote on Nov 25, 2008 8:47 AM:
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