The city’s proposed budget for fiscal year 2017-18 (FY2018) was released this week. The budget sets a levy at $13.45 per $1,000 of valuation – down 24 cents from $13.69 this year.
“It’s not huge, but it’s not an increase,” City Administrator Mike Taylor said.
The total tax asking moves from the current re-estimated FY2017 total of $2.83 million to $2.86 million in FY2018. That marks less of an increase than last year, when the tax asking increased from $2.4 million to $2.7 million.
The city’s higher tax asking is a result of an increase in valuations for residential property, as determined by the Union County Assessor.
Budget rundown
Taylor said wage increases for city employees will rise 2.2 percent across the board for non-bargaining and union employees in FY2018. City employees received raises of 2 percent in FY2013-15 and 2.2 percent in FY2016-17.
Health insurance costs for city employees will increase .08 percent this year, but Taylor said employees will pick up an additional 1 percent of their cost. Employees will now pay for 11 percent of their health insurance cost while tax dollars pay the remaining 89 percent.
Major construction projects include the Adams Street project from Lake Shore Drive to Park Street, which is estimated to cost approximately $280,000, and the waste water improvement project that will be ongoing for three to four years.
An additional $3 million has been built into the budget for potential road upgrades discussed at city council meetings, but yet to be approved.
“We put proposals in front of them that show borrowing $1 million and $5 million,” Taylor said. “We built $3 million into this expense and revenue side for this budget, but if it doesn’t get approved, it washes out. We put it in there so we could try to avoid an amendment. I think there’s pretty good support to do something. We’re going to have to have some more discussions with some engineers. That’s going to be an ongoing topic.”
The city is working on the road-improvement projects with Austin Smith of Garden and Associates in Creston.
Taylor added that the levy rate does not have anything built into it for any additional street projects. If the council approves additional road-improvement projects, the levy rate would likely increase next year.
In FY2017, $100,000 was budgeted to continue renovations to the restored Creston Depot. Taylor said more work will be done to the restored Creston Depot this year. Work included replacing windows and repairing mortar on the tile roof.
In addition, the FY2018 budget includes a couple of new police vehicles, which typically cost the city between $25,000 and $30,000 per vehicle by the time all the equipment is added to the vehicles, and other new equipment, such as a new lawnmower or two for the city.
Taylor said the city trades in both old police vehicles and old lawnmowers. So, the cost of new purchases will be determined largely on trade-in value. Also, the city is using USDA grants to help fund the purchase of new police vehicles.
“I think the departments did a good job of pulling it together,” Taylor said. “It’s going to be a busy year once we kick off the road stuff. That’s going to be the major focus you’ll see from us for the next few months, targeting the areas we’d like to get done, getting bids and getting work started.”
Taylor noted that since it’s late in the season, road work may not be started this calendar year. That will depend on how busy contractors are.
Lastly, Taylor said the city’s mandated contribution toward police and fire department employees retirement plans will go down less than 1 percent in FY2018.
A public hearing for the 2017-18 proposed budget is slated 6 p.m. Tuesday, March 7, at the council chambers inside the restored Creston Depot.
In other city council news:
• The council unanimously approved an easement request to place a parking space on city right-of-way at 408 N. Pine St., with the stipulation the parking space is done with asphalt or concrete.
“I think it’s a good policy to get to at some point to try to keep some of the mud off the roads,” Taylor said.
“There’s mud all over the streets,” said Steve Wintermute, at-large councilmember. “We have to make a stand on something, and it’s a good time to start.”