MONROE - If Monroe is going to stay within its state-set 2 percent levy increase, it will need to cut about $490,000 from the budget.
The city's Finance and Taxation Committee took a first look at the 2009 proposed budget Monday night. An increase in cost of health insurance for city employees is hitting the budget hard.
The city is self-insured, but had two bad years in a row for large employees claims, which caused the reinsurance costs to take a "big bump" of over 20 percent, Mayor Ron Marsh said.
Some department budgets came in under budget, except for health insurance.
"Health insurance has to be made up, and there's no excess funds to make them up," committee member Mark Coplien said. "Everybody's going to have to take a bite on this one (budget)."
A 3.2 percent raise in employee wages negotiated with the union and increased costs for fuel and salt are also negatively impacting the budget.
To off-set uncontrollable expenditure increases, department heads are being asked to keep operating costs at last year's level.
Another maneuver is to move funds around. The city's $26,000 grant to Main Street will come out of the TIF #7 funds.
CITY ADMINISTRATOR FUNDS TRANSFERRED
The $105,500 proposed budget for a city administrator, down from $136,000 in 2008, has been eliminated for 2009, and those funds have gone to other budgets.
Some of the city administrator budget was ear-marked to go to the Monroe Chamber of Commerce and Industry (MCCI) for the cost of an economic marketing advisor. Instead, $25,000 of the city administrator funds will go into Community Development funds and the economic marketing service will be paid out of there.
The city completed its payments Sept. 9, under the hiring contract made with the past administrator, Mark Vahlsing, who was terminated May 14.
"We need one (administrator), but the logical choice is for next year," Coplien said.
"We've got an active counsel and a good mayor; we're doing fine," committee member Thurston Hanson said.
MORE HOURS FOR CLERK'S OFFICE
Another portion of the city administrator budget funds will go to cover city clerk duties.
"We picked up a lot of work from the administrator's office," City Clerk Carol Stamm told the committee.
The city had four elections this year, and Stamm said the state had added "more and more mandates" to cover elections, including more security checks and training. Stamm also noted an increase in employee turnovers this year, which increased processing paperwork; an increase in liquor licenses with more permits to handle and an increase in liquor license inquiries; and increased compensation training for seasonal workers.
The Clerk office budget is requesting a move to a full-time position for the assistant city clerk, who now works 30 hours per week.
The Mayor's office and City Council budgets both see a decrease.
The City Council budget shows no increase, but the committee quickly cut $2,000 in a subscription fee, and discussed how to cut down on the amount of paper used for committee meetings.
The Mayor's office came in 11 percent down from 2008.
WATER DEPARTMENT IN THE RED
The water department revenues are about $63,000 over operating expenses. That difference would be more were it not for fuel costs and utilities costs, water department supervisor Mike Kennison said.
But there is still the problem of paying property taxes. Property taxes for 2008 and 2009 are being paid out of reserves in the department's depreciation fund, which Coplien said "is not a money fund."
One option was to ask the city to forego the $240,000 in property taxes the utility pays the city.
But the committee said the city needs the tax money this year to balance the budget.
Property tax for the water department is based on its assets, including the buildings, generating plant and the pipes in the ground.
Director of Public Works Kelly Finkenbinder said assets increase all the time, when new projects, like the Wal-Mart Superstore, are included in assessed value.
The other option for the water department is to go before the Public Service Commission for a "full blown" rate increase of about 6.5 to 7 percent, Kennison said.
The city has not had a full rate increase since 2004; however, the utility did have a cost of living increase that went in to effect during the third quarter, which amounted to about $15,000.
In fixing a rate increase, the Public Service Commission will take into consideration any projected assets on the schedule for the city. Kennison said that would include Ninth Street, 16th Avenue and the new generator installed this year.
Items the committee wants taken off the water department budget include $1,700 to $2,000 for body repair work on vehicles that Kennison said are about to rust through.
"You don't have that luxury," Coplien said. "We can't justify a rate increase for things like that. It has to be put off until you're more solvent."
The committee will continue reviewing departmental budgets this Wednesday. The budget needs to be ready by Oct. 29 for public publication, before the City Council can vote on the final budget.
The city's Finance and Taxation Committee took a first look at the 2009 proposed budget Monday night. An increase in cost of health insurance for city employees is hitting the budget hard.
The city is self-insured, but had two bad years in a row for large employees claims, which caused the reinsurance costs to take a "big bump" of over 20 percent, Mayor Ron Marsh said.
Some department budgets came in under budget, except for health insurance.
"Health insurance has to be made up, and there's no excess funds to make them up," committee member Mark Coplien said. "Everybody's going to have to take a bite on this one (budget)."
A 3.2 percent raise in employee wages negotiated with the union and increased costs for fuel and salt are also negatively impacting the budget.
To off-set uncontrollable expenditure increases, department heads are being asked to keep operating costs at last year's level.
Another maneuver is to move funds around. The city's $26,000 grant to Main Street will come out of the TIF #7 funds.
CITY ADMINISTRATOR FUNDS TRANSFERRED
The $105,500 proposed budget for a city administrator, down from $136,000 in 2008, has been eliminated for 2009, and those funds have gone to other budgets.
Some of the city administrator budget was ear-marked to go to the Monroe Chamber of Commerce and Industry (MCCI) for the cost of an economic marketing advisor. Instead, $25,000 of the city administrator funds will go into Community Development funds and the economic marketing service will be paid out of there.
The city completed its payments Sept. 9, under the hiring contract made with the past administrator, Mark Vahlsing, who was terminated May 14.
"We need one (administrator), but the logical choice is for next year," Coplien said.
"We've got an active counsel and a good mayor; we're doing fine," committee member Thurston Hanson said.
MORE HOURS FOR CLERK'S OFFICE
Another portion of the city administrator budget funds will go to cover city clerk duties.
"We picked up a lot of work from the administrator's office," City Clerk Carol Stamm told the committee.
The city had four elections this year, and Stamm said the state had added "more and more mandates" to cover elections, including more security checks and training. Stamm also noted an increase in employee turnovers this year, which increased processing paperwork; an increase in liquor licenses with more permits to handle and an increase in liquor license inquiries; and increased compensation training for seasonal workers.
The Clerk office budget is requesting a move to a full-time position for the assistant city clerk, who now works 30 hours per week.
The Mayor's office and City Council budgets both see a decrease.
The City Council budget shows no increase, but the committee quickly cut $2,000 in a subscription fee, and discussed how to cut down on the amount of paper used for committee meetings.
The Mayor's office came in 11 percent down from 2008.
WATER DEPARTMENT IN THE RED
The water department revenues are about $63,000 over operating expenses. That difference would be more were it not for fuel costs and utilities costs, water department supervisor Mike Kennison said.
But there is still the problem of paying property taxes. Property taxes for 2008 and 2009 are being paid out of reserves in the department's depreciation fund, which Coplien said "is not a money fund."
One option was to ask the city to forego the $240,000 in property taxes the utility pays the city.
But the committee said the city needs the tax money this year to balance the budget.
Property tax for the water department is based on its assets, including the buildings, generating plant and the pipes in the ground.
Director of Public Works Kelly Finkenbinder said assets increase all the time, when new projects, like the Wal-Mart Superstore, are included in assessed value.
The other option for the water department is to go before the Public Service Commission for a "full blown" rate increase of about 6.5 to 7 percent, Kennison said.
The city has not had a full rate increase since 2004; however, the utility did have a cost of living increase that went in to effect during the third quarter, which amounted to about $15,000.
In fixing a rate increase, the Public Service Commission will take into consideration any projected assets on the schedule for the city. Kennison said that would include Ninth Street, 16th Avenue and the new generator installed this year.
Items the committee wants taken off the water department budget include $1,700 to $2,000 for body repair work on vehicles that Kennison said are about to rust through.
"You don't have that luxury," Coplien said. "We can't justify a rate increase for things like that. It has to be put off until you're more solvent."
The committee will continue reviewing departmental budgets this Wednesday. The budget needs to be ready by Oct. 29 for public publication, before the City Council can vote on the final budget.