Trending
SALEM -- The Finance Committee of city council started discussions Tuesday night about next year's budget, with both Mayor John Berlin and Councilman Geoff Goll talking about a need to put the .25 percent additional income tax back on the ballot so the money for street improvements can continue.
"I would like to keep it as is," Goll said.
The additional income tax was placed before voters in November 2015 specifically earmarked for improving streets, alleys, sidewalks, curbs and storm sewers. He said it should be placed back on the ballot in 2019 for the same purpose.
"I hope council looks and asks folks to have it indefinitely into the future and mentions capital improvements," he said.
Berlin agreed with having the .25 percent additional income tax continue on. He said when council members first placed it before voters in 2015, they told them what they were going to do with the money and they did it. He said he hoped that would carry over, noting it would not be an increase but a continuation of what's already in place.
The additional tax expires Dec. 31, 2020 and was slated to generate about $6 million in revenue, which the mayor said it's on target to do. The city borrowed money against the expected tax revenue to do a bunch of streets and some alleys in the first and second years and then used just part of the money along with capital improvement money to do the concrete streets project this year. The final two years, the additional income tax money will be used to pay back the loans.
The committee also talked about looking at raising the motorist registration fees the city can charge. Right now, the city receives $7.50 for each registration. Council has the ability to increase the fees up to an additional $10 for a total of $17.50. No action was taken, but council members indicated it may be time to start the conversation.
The discussion of the fees came up when city Auditor Betty Brothers talked about budgeting $215,000 in a transfer account in the general fund for street department operations. The money will be transferred as needed and noted that's an increase from the $100,000 she's been budgeting from the general fund to transfer into the street department the last four or five years.
Brothers explained that the license and gas taxes don't change but operating costs for the department have increased for salt, wages and other day-to-day expenses to the point where the general fund has to supplement the department. Berlin said he would rather see that money in the transfer account go to capital, but the longer the city doesn't address the permissive tax issues, the more they'll have to keep taking from the general fund for the street department operations.
Goll asked how soon the city would see an increase if council raised the fees. If the increases went into effect by July 1, they wouldn't see any more additional money from gas and license fees until 2020. He noted that's not going to help much next year, but Brothers said it would help in 2020.
In talking about the bottom lines for the budget, Brothers said she's looking at a 4 percent increase in the general fund, with estimated revenue at $5.5 million. She estimated expenses in the general fund as a little over $6 million and a carryover to start the year anywhere from $1.6 million to $1.8 million.
"Our departments do a really good job of keeping expenses down," she said.
In talking about the capital improvements fund and any large items for next year, city Service/Safety Director Ken Kenst said they're looking at constructing a new building next to the main service garage to store more equipment.
Berlin also said the one pumper truck in the fire department is continuously being repaired and needs replaced at a cost of an estimated $650,000. He said there won't be enough in capital to just do an outright purchase, that they would have to look at a long-term loan, possibly over 20 years. He said they'll probably be coming to council regarding that sooner rather than later.
During the city council meeting, which followed the committee meeting, Councilwoman Cyndi Baronzzi Dickey asked for prayers for her mother-in-law, former longtime city Auditor Fran Dickey, who for years was a fixture at Finance Committee meetings when she served the city. She said she's hospitalized and asked that people keep her in their thoughts.
mgreier@salemnews.net