HUMBOLDT — Humboldt’s City Council moved to save a Public Works position slated for the chopping block during a preliminary hearing on its fiscal year 2010 budget Monday night. Councilman Sean McReynolds can be credited with keeping the position intact.
At issue was whether or not the budget could support the job, and whether or not there was work enough warranting the position.
City Administrator Larry Tucker argued that “We have 10 people in public works and we can get by with nine. We’re not keeping them as busy as we should.”
McReynolds cited streets that need patching and substandard sidewalks around the city square as projects to be tackled. Plus, he offered a suggestion for funding materials to get the work done.
“There’s a sizable amount (of money) in the gas surplus fund,” he stated, noting close to $200,000 of unencumbered funds in that line item.
“I don’t know what kind of emergency we’re expecting that will cost $200,000,” he said. McReynolds suggested tapping the fund to keep the position in place and crews on the street.
“Let’s go through another year from now and look at it. If we can’t fund it then, we cut it,” he said of the proposed staff decrease.
The council agreed, and the budget will be published with the position intact.
Additional discussion centered on a 2 percent annual pay raise promised to staff, and whether the city should continue to pay 100 percent of full-time employees’ health insurance. Tucker said those benefits were a valuable recruiting tool, as well as “a good faith effort on the part of the city” to show it values its workers. The city has 28 full time employees and five part-time or seasonal staff.
“I believe it has helped (retain current staff) because employees know that they have a pay/salary plan,” that increases each year, Tucker said.
“I’m not in favor of this 2 percent increase if we pay 100 percent of their health insurance,” Mayor Bob Sharp said.
But Councilman Dan Julich voiced the majority viewpoint, saying, “I can’t see we’re in such dire straits that we can’t give 2 percent and insurance.” The perks stayed.
Nonetheless, all departments are facing slight reductions in their budgets.
Holding as close as possible to zero growth was the budgets’ goal, and Tucker said the sewer fee is the only utility being increased.
That department is under a “five-year transition to raise rates until it becomes self-sufficient,” Tucker said. The last two years saw 25 percent increases, while the 2010 increase will be 10 percent, he said. “That’s what it’s going to take for that fund,” Tucker said.
“The swimming pool will continue to get budget transfers until we can make that fund self-sufficient,” as well, Tucker said.
City water sales have been down 10 to 15 percent the past two years, Tucker noted. “I can’t really explain why,” he said.
“Like everything else,” Tucker said, “utility funds have to be operated like a business. We’ll need to reduce expenses in water and sewer to balance our budget for next year.”
A request by the library for a budget increase to raise salaries met with an impasse.
Tucker delineated city debt and lease options, including a street sweeper and police car, both scheduled for five year leases.
A large debt obligation came from the city’s contract to purchase the Emprise Bank building on the square for conversion to a new city hall. Purchase price, which the city is obligated to, is $351,000. Another $200,000 is requested for remodeling costs.
AT THE HEART of the budget cuts is the fact that the city is facing a 1.52 percent “reduction in valuation of property,” Tucker said. Due to that decrease, “the total amount of tax being requested is less this year” than in fiscal 2009, he noted.
Next year’s valuations are even less certain. “We don’ know what we’ll have for the future. We may have 20 families move out,” Julich said.
“We hope we can grow in housing in Humboldt,” Tucker said, “but that will take many years. Instead, he said, “we need to have a tool in place to promote business growth.”
“The future right now is to get businesses in town and get sales tax in town. As long as we have the same legislature that we have, we won’t get any damn money” from the state, Sharp opined.
“The legislature is tinkering with our ability to increase our levy,” Tucker explained. “Every time a business buys a new $100,000 piece of equipment, we can’t collect any more taxes, but we are expected to provide them with increased services” like police and fire protection, he said.
“You know what you need to do?” Sharp said to the council. “Stop putting those same people in office.”
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