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City budget reduced by $3.4 million
By Carol Broeder/Arizona Range News
The city's budget of more than $31 million was approved last Monday by a 6-1 vote of the Willcox City Council.
Councilman Woody Johnson cast the lone nay vote.
After a "challenging" fiscal year, the council had approved the city's tentative budget of $32,091,512 at its June 21 meeting.
After the council adopted that tentative budget, it was reduced by $340,368, to a total of $31,781,144, due to adjustments in General Fund 16 and Special Revenue Fund 17.
That's about nine percent less that the fiscal year 2009-10 budget of $35,212,134, according to Ruth Graham, the city's finance director.
Explaining why this year's budget is about four million lower than last year's, Graham said the primary difference is in the Utility Capital Projects budgets, which decreased, and the Grants Budget, which increased.
Five million of the difference is in the change from $20 million to $15 million for the new sewer plant project, she said.
"We have a better estimate now on what we're going to spend on the Wastewater Treatment Plant," City Manager Pat McCourt told the Range News.
"We thought it was going to be about $20 million, but it may be much less than that."
The fiscal year 2010 budget adopted August 2009 totaled $35,212,134, of which the city had budgeted capital projects of $3 million for a gas regulator project; $2 million for a water line extension; and $19.5 million for a sewer plant, Graham said.
In the fiscal year 2011 budget, the gas regulator and water line extension projects were unchanged, but the sewer plant project budget was reduced by $4.5 million, she said.
Grant Revenues were budgeted at $1 million in fiscal year 2010, and at $2.1 million in fiscal year 2011 -- an increase of $1.1 million, said Graham, adding that the balance of the reduction, about $1 million, is spread throughout.
"All departments have cut back on capital spending requests and worked hard to cut costs," she said.
There is an increase in property tax rate - in fiscal year 2009-10, the primary tax rate was 0.2890, and the secondary tax rate was 0.6556 for a combined rate of 0.9446.
In fiscal year 2010-11, the proposed primary tax rate is 0.3020 and the proposed secondary tax rate is 0.6700 for a combined rate of 0.9720.
On a home valued at $100,000, the combined primary and secondary property tax will total $97.20, an increase of $2.74 from last fiscal year.
The council held a second public hearing at its Aug. 16 meeting, later voting on the city budget for fiscal year 2010-11.
Johnson had read some of his own comments and questions during the Aug. 2 public hearing, which City Manager Pat McCourt addressed last Monday.
"I know that times are tough and that we are still in for a tough year," Johnson said. "Do we see growth in any area other than tourism?"
Johnson asked about the city's plan for raising additional revenues and also asked, "Is there any idea for what we can do to achieve the forward momentum that has been behind us the past years previous to the 2009-2010 budget?"
He then referred to McCourt's June 28 memo to the council regarding "energy-saving items."
Johnson called that memo a "good start" and "would be added savings if it is followed and enforced."
"It's not that I am micro-managing the budget or against forward movement," he added. "The status quo will set us back in the years to follow."
"We need to look at some type of raise structure for the employees, as well. It will be four years since our base employees have gotten a raise," said Johnson, adding, "Our employees are the infrastructure that makes the city move."
He then made some suggestions for implementing some things into "the fixed budget." All would need council approval. They are as follows:
Freeze all hiring.
Freeze all travel and training except for what is mandatory from state and federal requirements for job duties.
Freeze all capital purchases.
Eliminate any position that is being held in the budget for the numbers.
Place all travel training, capital purchase and insurance for each facility under the manager's budget section.
Johnson offered two other possible ideas, both of which would also require council approval - "go paperless as much as possible, i.e., council packets," and "Look at the four-day work week."
In his Aug. 6 memo, McCourt addressed Johnson's comments point by point.
As to the comment on his June 28 memo, McCourt said it was written to summarize some actions city staff had already voluntarily taken.
McCourt said that there was "a great deal of time" spent during the budget hearings to discuss the services being delivered by the various city departments.
"The budget document also provides a great deal of information on the cost to provide those services to the citizens of our community," said McCourt, adding that the "city exists for the purpose of delivery of services to the public."
"These are very difficult times, the future is unclear, when income levels will return is unclear, demand for services had not decreased - it has increased as can be seen by the requests for new services," he said.
McCourt cited the examples of the request for city staff instead of volunteers to take care of the ball fields during tournaments; the interest in the city's taking over the airport; upgrades of roads from dirt/gravel to chip seal; and waiver of fees for use of facilities.
"And these are just the obvious requests," he added. "There are many more subtle requests."
McCourt said that city staff will continue to deliver the services approved by the council; to look for ways to reduce the cost of delivering those services; and stretch available equipment by delaying capital purchase when possible.
"If the council wishes to eliminate or reduce the services provided and listed in the budget, please inform staff and we will comply," he said.
"The current system allows the public to look at the cost of providing services," said McCourt, citing the example of travel and training expenses, which "can be easily seen by department by looking at the last four line item numbers ending in 2700."
"The public can then clearly see which service area is spending how much money for travel and training," he explained.
McCourt said that city staff does support the "paperless" idea as much as possible; citing as one example that the business permit application is available on the city's website.
As of June 21, the city instituted the practice and eliminated production of seven paper agenda packets.
McCourt explained that the city has not eliminated the paper agenda packets for council members, since it would have to buy laptops and equipment for the council's use.
"I think Councilman Johnson's idea to give all city employees a raise is very nice," said McCourt, adding that the city is currently struggling to maintain delivery of services to its citizens.
"If the council wishes to grant some type of raise, then it is only necessary for the council to make the motion of how much and what type, approve it, and staff will implement," he said.
The city manager reminded the council that staff recently brought - and council approved-- changes to the city's medical insurance program "so that our employees could maintain medical coverage without increased costs."
"Staff recognizes that we have to share the burden of getting through this difficult time," he said.
McCourt said he was unsure what was intended with Johnson's comments on the four-day work week.
"If this is suggesting furloughs, which would reduce the cost of employees; it would also reduce the employee's income, which is counter to the suggestion above to give a raise," he said.
"If it is intended to suggest four ten-hour days, then there is no savings in pay and benefits; there might be some slight savings in utilities in very limited areas," said McCourt.
"There would be a major reduction in availability of services to the public - paying bills, responding to citizen requests for service, maintenance of parks and grounds."
McCourt pointed out that since public safety is a 24/7 operation, there would be no savings there.
"The $31 million budget for fiscal year 11 is hard to swallow," he told the council. "The fiscal year 10 budget was 35 million."
While McCourt went on to discuss the Enterprise Funds in detail, he told the council the most important thing to look at is the area of the budget where there are difficulties in balancing ongoing services and income - the General Fund.
For fiscal year 11, the proposed expenditures in the General Fund are $4,303,788.
"While the General Fund budget has been declining - the cost of supplies, power, and materials has been increasing," he said.
"While increased efficiencies by staff have allowed the continuation of service levels, the ability to continue locating efficiencies is declining - the 'low hanging fruit has already been picked.'"
"In addition to reduced General Fund budgets (the plan for spending) over the last four years; staff has consistently spent less than the budgets for delivery of services," he said. "Staff has been and remains committed to addressing the long-term concern of the General Fund; as we have already done in the Streets Fund, which was in the same situation in fiscal year 10," said McCourt, adding, "Staff worked on, developed a five-year plan, presented it to council, and it was accepted."
"There will continue to be challenges in the Streets Fund and there will continue to be challenges in all areas of the city budget including the General Fund," he said.
"The challenges have been addressed, will continue to be addressed, and recommendations presented for the council consideration."
"The solutions are likely to be difficult," McCourt added.
Councilman Woody Johnson cast the lone nay vote.
After a "challenging" fiscal year, the council had approved the city's tentative budget of $32,091,512 at its June 21 meeting.
After the council adopted that tentative budget, it was reduced by $340,368, to a total of $31,781,144, due to adjustments in General Fund 16 and Special Revenue Fund 17.
That's about nine percent less that the fiscal year 2009-10 budget of $35,212,134, according to Ruth Graham, the city's finance director.
Explaining why this year's budget is about four million lower than last year's, Graham said the primary difference is in the Utility Capital Projects budgets, which decreased, and the Grants Budget, which increased.
Five million of the difference is in the change from $20 million to $15 million for the new sewer plant project, she said.
"We have a better estimate now on what we're going to spend on the Wastewater Treatment Plant," City Manager Pat McCourt told the Range News.
"We thought it was going to be about $20 million, but it may be much less than that."
The fiscal year 2010 budget adopted August 2009 totaled $35,212,134, of which the city had budgeted capital projects of $3 million for a gas regulator project; $2 million for a water line extension; and $19.5 million for a sewer plant, Graham said.
In the fiscal year 2011 budget, the gas regulator and water line extension projects were unchanged, but the sewer plant project budget was reduced by $4.5 million, she said.
Grant Revenues were budgeted at $1 million in fiscal year 2010, and at $2.1 million in fiscal year 2011 -- an increase of $1.1 million, said Graham, adding that the balance of the reduction, about $1 million, is spread throughout.
"All departments have cut back on capital spending requests and worked hard to cut costs," she said.
There is an increase in property tax rate - in fiscal year 2009-10, the primary tax rate was 0.2890, and the secondary tax rate was 0.6556 for a combined rate of 0.9446.
In fiscal year 2010-11, the proposed primary tax rate is 0.3020 and the proposed secondary tax rate is 0.6700 for a combined rate of 0.9720.
On a home valued at $100,000, the combined primary and secondary property tax will total $97.20, an increase of $2.74 from last fiscal year.
The council held a second public hearing at its Aug. 16 meeting, later voting on the city budget for fiscal year 2010-11.
Johnson had read some of his own comments and questions during the Aug. 2 public hearing, which City Manager Pat McCourt addressed last Monday.
"I know that times are tough and that we are still in for a tough year," Johnson said. "Do we see growth in any area other than tourism?"
Johnson asked about the city's plan for raising additional revenues and also asked, "Is there any idea for what we can do to achieve the forward momentum that has been behind us the past years previous to the 2009-2010 budget?"
He then referred to McCourt's June 28 memo to the council regarding "energy-saving items."
Johnson called that memo a "good start" and "would be added savings if it is followed and enforced."
"It's not that I am micro-managing the budget or against forward movement," he added. "The status quo will set us back in the years to follow."
"We need to look at some type of raise structure for the employees, as well. It will be four years since our base employees have gotten a raise," said Johnson, adding, "Our employees are the infrastructure that makes the city move."
He then made some suggestions for implementing some things into "the fixed budget." All would need council approval. They are as follows:
Johnson offered two other possible ideas, both of which would also require council approval - "go paperless as much as possible, i.e., council packets," and "Look at the four-day work week."
In his Aug. 6 memo, McCourt addressed Johnson's comments point by point.
As to the comment on his June 28 memo, McCourt said it was written to summarize some actions city staff had already voluntarily taken.
McCourt said that there was "a great deal of time" spent during the budget hearings to discuss the services being delivered by the various city departments.
"The budget document also provides a great deal of information on the cost to provide those services to the citizens of our community," said McCourt, adding that the "city exists for the purpose of delivery of services to the public."
"These are very difficult times, the future is unclear, when income levels will return is unclear, demand for services had not decreased - it has increased as can be seen by the requests for new services," he said.
McCourt cited the examples of the request for city staff instead of volunteers to take care of the ball fields during tournaments; the interest in the city's taking over the airport; upgrades of roads from dirt/gravel to chip seal; and waiver of fees for use of facilities.
"And these are just the obvious requests," he added. "There are many more subtle requests."
McCourt said that city staff will continue to deliver the services approved by the council; to look for ways to reduce the cost of delivering those services; and stretch available equipment by delaying capital purchase when possible.
"If the council wishes to eliminate or reduce the services provided and listed in the budget, please inform staff and we will comply," he said.
"The current system allows the public to look at the cost of providing services," said McCourt, citing the example of travel and training expenses, which "can be easily seen by department by looking at the last four line item numbers ending in 2700."
"The public can then clearly see which service area is spending how much money for travel and training," he explained.
McCourt said that city staff does support the "paperless" idea as much as possible; citing as one example that the business permit application is available on the city's website.
As of June 21, the city instituted the practice and eliminated production of seven paper agenda packets.
McCourt explained that the city has not eliminated the paper agenda packets for council members, since it would have to buy laptops and equipment for the council's use.
"I think Councilman Johnson's idea to give all city employees a raise is very nice," said McCourt, adding that the city is currently struggling to maintain delivery of services to its citizens.
"If the council wishes to grant some type of raise, then it is only necessary for the council to make the motion of how much and what type, approve it, and staff will implement," he said.
The city manager reminded the council that staff recently brought - and council approved-- changes to the city's medical insurance program "so that our employees could maintain medical coverage without increased costs."
"Staff recognizes that we have to share the burden of getting through this difficult time," he said.
McCourt said he was unsure what was intended with Johnson's comments on the four-day work week.
"If this is suggesting furloughs, which would reduce the cost of employees; it would also reduce the employee's income, which is counter to the suggestion above to give a raise," he said.
"If it is intended to suggest four ten-hour days, then there is no savings in pay and benefits; there might be some slight savings in utilities in very limited areas," said McCourt.
"There would be a major reduction in availability of services to the public - paying bills, responding to citizen requests for service, maintenance of parks and grounds."
McCourt pointed out that since public safety is a 24/7 operation, there would be no savings there.
"The $31 million budget for fiscal year 11 is hard to swallow," he told the council. "The fiscal year 10 budget was 35 million."
While McCourt went on to discuss the Enterprise Funds in detail, he told the council the most important thing to look at is the area of the budget where there are difficulties in balancing ongoing services and income - the General Fund.
For fiscal year 11, the proposed expenditures in the General Fund are $4,303,788.
"While the General Fund budget has been declining - the cost of supplies, power, and materials has been increasing," he said.
"While increased efficiencies by staff have allowed the continuation of service levels, the ability to continue locating efficiencies is declining - the 'low hanging fruit has already been picked.'"
"In addition to reduced General Fund budgets (the plan for spending) over the last four years; staff has consistently spent less than the budgets for delivery of services," he said. "Staff has been and remains committed to addressing the long-term concern of the General Fund; as we have already done in the Streets Fund, which was in the same situation in fiscal year 10," said McCourt, adding, "Staff worked on, developed a five-year plan, presented it to council, and it was accepted."
"There will continue to be challenges in the Streets Fund and there will continue to be challenges in all areas of the city budget including the General Fund," he said.
"The challenges have been addressed, will continue to be addressed, and recommendations presented for the council consideration."
"The solutions are likely to be difficult," McCourt added.
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RLiza wrote on Aug 26, 2010 5:06 PM: