A preliminary 2012 budget was submitted to the city council last week. During upcoming work sessions, we will ask the council to review priorities and determine funding for various projects and areas of operations next year.
This article provides an overview of the 2012 budget timeline and input process.
Timeline:
- Proposed budget submitted to council Oct 4
- Council work session Oct 18
- Second council work session Nov 1
- Public hearing Nov 15
- Additional council work session (if needed) Week of Nov 21 or 28
- Council approves budget December 6
We follow rules in the Colorado Revised Statutes regarding budget deadlines and the public hearing process. Council must be presented with a budget by October 15. A public hearing date is set and information about the budget is published. Council must approve the budget before the end of the current fiscal year.
The budget process involves developing standalone budgets for the City’s General Fund, Conservation Trust Fund, SteamPlant Event Center Fund, and the separate water and sewer operations within the Water and Wastewater Enterprise Fund. The City has both general government and business type (or “enterprise”) funds. The government funds are primarily supported by sales taxes and intergovernmental revenue. Enterprise funds are used for business-type activities with user fees and charges that cover all costs.
One of the most important parts of setting the budget is establishing the top priority needs to be funded and determining other goals the council and community members want to achieve. If existing sources do not provide enough funding, new revenue streams must be found or further cuts will be made.
Budgets are based on a variety of assumptions about what the future holds. For planning purposes, we made assumptions regarding the rate of inflation for goods and services purchased by the City, the increase or decrease in taxable sales, lodging occupancy rates, volume of the demand for municipal services that users pay to receive and future interest rates. After evaluating assumptions and the fixed costs in the budget, discretionary areas of spending are considered. Priorities are based on a number of factors, such as public safety, benefits to the community, avoidance of future capital spending and future cost efficiencies.
Capital spending is proposed for some routine replacements and one-time projects or purchases. As usual, we have more capital requests than available funds and some cuts or deferrals need to be determined.
Staff requested $700,000 to pave Sackett Ave from F Street to C Street and around the corner to First Street and to pay for engineering costs of streets projects. Council has already committed matching funds to continue the Highway 50 enhancement project, for which a $260,000 CDOT grant was accepted.
Staff proposed the purchase of a replacement fire truck. A possibility exists for grant funding to cover a large portion of the cost. If the grant is not awarded, general fund reserves could be used or other projects must be cut or deferred.
We will discuss funding proposed improvements to Centennial Park. We are also considering options for a structure to replace the Chisolm House to be funded with insurance proceeds.
Other capital requests include several vehicle replacements, software, building improvements, roof replacements and various items of equipment.
The City is operating with a reduced level of staffing in the community development, police and public works departments. Personnel costs are expected to increase, however, due to higher medical insurance, workers compensation premiums and market adjustments to compensation. We also expect higher prices for many routine supplies, utility costs and general insurance.
Setting a budget always involves difficult decisions, especially during slow economic times. Most of the available dollars are dedicated to basic municipal services – fire and police protection, public works, land use, planning and administration. Culture, parks, and recreation are also services highly valued by our community.
Expenditures approved in the budget should reflect the values and priorities of the community. It is our goal to use all resources for the greatest long-term good of Salida. We encourage citizens to speak to their council representatives and attend the public hearing in November so that broad community input can be considered.