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Budget Meetings Reveal Bleak Forecast
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Milestone was hired by the town to fix the collapsing storm water pipes
at 29th and Hollister Drive.
Town Councilor Jeff Hartman discussed the need to impose a storm water
tax on residents to help fix the aging sewer systems. The discussion arose
during the July 29 and 30th budget meetings.
He also recommended the town's water, park and sewer departments drive
smaller trucks to save money.
Photo by Linda Thompson |
(posted 8.4.09)
Rough economic times could be just in the beginning stages for local governments.
Tom Guevara, the town's financial advisor with Crowe Horwath, told the
Speedway Town Council during the July 29 and 30 budget meetings to be prepared
for financial difficulties in 2011 and 2012, due to the economy and circuit
breaker thresholds decreasing by a half percent across the board.
"It is unfortunate, but if the circuit breakers don't get you, the economy will." He said the worst years are ahead because this year's economy will not be felt until 2011 and 2012. He explained that property tax levies are based on the average change in non-farm personal income for the prior six years.
Guevara told the council last year to keep a reserve cash balance of around
15% to 20% to prepare for difficult times. Councilor Gary Raikes asked
if the town was maintaining its reserves, Guevara could not answer since
the 2009 taxes have not all been distributed.
Town Manager Barbara Lawrence will no longer have $525,000 in her budget.
She requested more money for printing and reduced her gas allocation. She
said her budget will have around $8,500. Lawrence's salary will still come
from water and sewer utilities fund.
The $525,000 was placed in the town manager's 2009 budget for police and
fire contract negotiations. She asked for future contract negotiations
to be completed before the budget funding so funds would not need to be
set aside like in 2009.
She said her assistant will probably continue to be paid from the cumulative
capital development fund for 2010. Guevara cautioned the town that the
CCD fund will probably drop because the legislature failed to pass HB 1447
to neutralize the effect of raising the homestead credit deduction for
homeowners to $45,000. He said the change in homestead credits could lower
the assessed valuation by 12 percent.
Councilor Lu Hillmer wanted part of Lawrence's salary to come from redevelopment
since she spends a lot of time in that area. Guevara explained they would
have to create a redevelopment department and an operating levy fund to
pay Lawrence since she is not a contractual employee of the redevelopment
commission.
Battalion Chief Ken Komlanc said the reshuffling of the fire department
was a good move, cutting overtime costs by $40,500. The reshuffling reduced
the personnel needed to run the three shifts. The fire marshal, division
chief, and assistant chief positions were dissolved and replaced by battalion
chief positions.
Komlanc said future fire chief would have to work with the recent changes.
"We all know the change. It is a good move in my opinion. It was something
we've needed for a long time." He said the change did not reduce the
level of protection to the residents. "I think that is the challenge,
you know, for the next chief to build on and to go from there." Fire
Chief Curtis Dean was not present at the meeting.
Hillmer questioned the move because IFD did not like the fact that only one engine serves two stations. Komlanc disagreed because the Quint can serve dual purposes.
The fire budget requested $55,000 from the cumulative capital development
fund for 2010. The money would be spent on equipment repair. Komlanc said
the budget increased about $30,400 from last year's $2.9 million.
Lawrence requested using the $100,000 from the technology services fund
for planning studies and to buy a financial procurement and payroll software
program for the clerk treasurer's office.
Clerk Treasurer Sharon Zishka was not present for the two day meeting to make comments.
Lawrence explained little of the technology fund has been spent in 2009
and recommended the software in 2010. She also wanted to conduct a residential
traffic study; contending there has been an "overuse" of four-way
stop signs in town. Lawrence said the answer to traffic control is not
always to install a stop or yield sign.
She also wanted to conduct a facilities study plan and look at the possibility
of having one fire station. She requested efficiency studies for the town
hall's space and energy. She also wanted a technology analysis performed
to create more efficiencies. She said the town's IT system might be able
to reduce its three servers to one.
Hillmer disagreed with the town hall study, saying one was already been
performed.
No votes were taken on the budget issues because the council still lacks
revenue information. The council will hold another budget meeting once
it gets that information, where it will determine if employees will receive
pay raise. The council budgeted 15% increase for health care costs.
Lawrence said that $900,000 in tax distributions arrived on July 29 and
expected most of it will go to the CCD fund. She said the SRC still has
$100,000 it borrowed in June.
The SRC did not vote to return the money to the town's general fund when
the plan to buy International Village fell through. The SRC needed $100,000
in escrow as part of the negotiations.
Redevelopment Commission Executive Director Scott Harris was absent. None
of the redevelopment commissioners attended to explain the budget.
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