City budget’s first reading proves productive
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The action took place after Finance Committee members voted to recommend a budget reflecting a $1.94 property tax rate to the full board minutes before, after some debate about the state’s budget problems.
Vice Mayor Billy Wood, chairman of the Finance Committee, was concerned about passing a local budget before the state resolves its issues. One concern has been the potential for the withholding of state-shared taxes, which city officials have said would significantly impact local services or taxes.
City Administrator Herb Llewellyn said he preferred city leaders pass it on first reading and suggested leaders talk about a contingency plan if state-shared taxes are withheld.
“If they don’t give us state-shared revenues, what do you want us to do on our level?” Llewellyn asked, noting his question was based on simple planning purposes.
“If you want to cut the government, I can tell you how many firemen that is, how many policemen that is, how many codes people that is. If you say we want to continue government the same size it is, that means doubling, well, not quite doubling [the tax rate],” Llewellyn added if all state-shared taxes were withheld.
“I think we’re going to have to take a long, serious look at it and it may have to be a combination of all of them,” Finance Committee member Alderman Patti Nunley said. No more discussion took place about what services would be affected if that happens.
Wood stated Monday that he hoped for a solution Wednesday, when state lawmakers were scheduled to debate the budget again, but nothing was passed at that session.
Mayor Royce Davenport offered that since leaders would be voting on a continuing budget that would allow the city to operate even if nothing is resolved at the state level and said passing the budget on first reading would not hurt. Last year, city leaders passed a similar continuing budget and finalized the budget in August.
“A lot of cities are waiting to see what the state legislature does, and others have done what we’re talking about doing – they pass the first reading and wait for second reading until it’s finalized,” Davenport said of his communications with other city leaders.
“I don’t think there’s any urgency to do it tonight, but it doesn’t hurt to have the first reading,” he added. The full board approved the budget and continuing budget unanimously.
As it currently stands, officials have budgeted about $8.6 million from the general fund, leaving a so-called reserve fund balance for 2003 at $1.3 million.
From the general fund, $680,000 is budgeted for general government, $312,000 for administration, $1.8 million for the police department, $1.2 million for fire department, $206,000 for codes enforcement, $520,000 for public works, $151,000 for city garage, $57,000 for cemeteries, $45,000 for animal control, $1.5 million for parks and recreation, $311,000 for urban forestry and $1.8 million for miscellaneous expenditures. Numbers are rounded.
Restricted funds include: $119,000 for drug fund; $18,400 for insurance fund; $657,000 for debt service; a borrowed $3.8 million for Main Street revitalization and a new fire truck; a borrowed $2 million capital outlay note; $1.1 million for solid waste collection and disposal; $352,000 for street aid (state shared) and $3.9 million for water and waste water.
State shared taxes comprise about $2.4 million of the city’s general fund, while property taxes account for about $3 million. Other sources of revenue include grants, reserve funds, payments in lieu of taxes from utilities such as McMinnville Electric System or the water department, fees, fines, licenses, permits and business taxes.