Jamestown  (CSi)  The Jamestown City Council met Tuesday afternoon at City Hall to continue with the drafting of the 2020 calendar year, city budget. All members were present.

The fourth budget draft was reviewed and discussed.

Highlights of the meeting included:

City Administrator Sarah Hellekson addressed items in the budget that had reduced expenditures, since the second draft of the budget.

Mayor Dwaine Heinrich had previously said, he will not support deficit spending, and at this point the 2020 General Fund Budget is short of being balanced by between $600,00 and $700,000.

He said line items will need to be reviewed for funding, as the budget process continues.

At Tuesday’s meeting, it was reported that the 2020 draft General Fund Budget is at this time at $4,196,005.  It does not include five mills for the public building fund.

Mayor Heinrich said the General Fund Balance is reduced  between $400,00 and $500,000 compared to a year ago.

The Civic Center budget currently shows a deficit of $413,000.

The sanitary sewer project’s outstanding balance is currently at $663,000 which needs to be addressed in the 2020 budget.  The initial cost was funded through a bond sale.

He said $2-million dollars needs to be in the 2020 to meet the balance and have a proper amount in the reserve fund.

He said rather than raise property taxes, he proposes to take the Civic Center out of the General Fund budget, increase the sales tax by a half percent, and half of that, or a quarter percent be used to fund the city’s share of specials assessments.  He added that a half percent would generate $600,000 to the city annually.  The current seven percent city sales tax generates $1.2 million.

City Attorney Leo Ryan says an increase in the sales tax does not have to go to a public vote.

It takes three months from city approval for the sales tax increase to be implemented.

The mayor added that the Storm Water Utility also has to be funded.

In the draft budgets a number of  item expenditures, have been reduced.

Proposed is eliminating the Community Christmas Tree expenditure, and instead decorate an existing tree in the city. The savings would be around $4,500, the cost of removing it from a donated property, and then disposing it.

Council Member Buchanan pointed out that the city’s mission is not to support non-profits.

The Council vote 4-1 to fund the Arts Center at  $3,000.  Council Member Buchanan vote in opposition.

A $5,000 expenditure for the Jamestown Area Chamber of Commerce was not approved, on a unanimous vote.

$800,000 is in the 2020 draft for expenditures in the City Sales Tax Fund, 2 percent on tax on sales, one percent to the city park district, point five percent to economic development and point five percent to city’s share of Special Assessments.

$359,500 in expenditures for Jamestown Tourism.

Expenditures were explained for new projects in the utility fund.

Mayor Heinrich said he is committed to passing a balanced budget, and if not passed, the 2019 budget numbers would be used.

He added that department heads may be asked to find more cuts in their budgets.

 

The next preliminary budget discussion is planned for the Finance and Legal Committee meeting on July 23, with the estimated new revenue projection numbers. The next city budget meeting is planned for Jul 29, at 10-a.m.

The First Reading of the budget to be introduced at the August 5th City Council meeting.

At that time the budget can be reduced but not increased.

The final budget is needed ready for passage by October.

The meeting was shown live on CSi Cable 67.