City hears about deficits in 2017 budget hearing

Jamestown (CSi)  The City of Jamestown held a Budget Committee meeting Monday at 3-p.m., at City Hall, to discuss the 2017 budget.  All members were present.

At the outset of the meeting, City Administrator Jeff Fuchs read a narrative , and projected that 2016 revenues will be  $609,000 less than budget. Many based on North Dakota projected cuts.

The Highway Tax Distribution, items related to vehicles, is down $263,00 from the amount budgeted and $178,00 less than the 2015 actual.

The State Aid Distribution, sales tax, is down $417,000 from the budgeted amount and $311,000 less than the 2015 actual.

Fuchs says he used the same property tax levy of $2,939,215 for the General Fund, as was levied for 2016.

The value of one mill in 2016 was $38,2018, and for 2017, is projected to be $41,499.

Projecting that overall 2016 expenditures will be $450,000 less that was budgeted and about the same as 2015 actual expenditures.  Some 2016 expenditures have not yet been made.

The 2017 Draft Budget was prepared as a “bare bones,” operating budget and includes:

No salary adjustments for COLA increases or step adjustments included.

No requests for additional funding or equipment replacement or new equipment included, however, all additional requests are listed following each department’s budget for informational purposes.

No additional personnel were included in the budget.

No additional or improved employee benefits were included in the budget.

Based on that scenario, the 2017 base budget, if approved, will still result in $354,000 in deficit spending.

The 2017 Draft budget is $659,273, (8%) less than the 2016 Approved Budget.

As the city will deficit spend in 2016, and 2017, and most City Department are seeing a reduction in their 2017 budgets, averaging 8%, Fuchs is encouraging the City Council to reduce any funding to other agencies by a similar 8%.

He also strongly encourages the City Council to allow zero increases in levies for other agencies, as the city would not be levying any increase dollars in the City Levies.

At the end of 2017 the Reserve Fund should be at 25% to 30%.

The Equipment Replacement which is funded by depreciation annually, does, include the equipment items requested for replacement.  The purchases would not impact the General Fund ending balance for 2017.

The City Motel Tax is project to be $41,940, (21.9%) less than budgeted.

The Restaurant Tax is projected to be $28,310, (8.4%) less than budgeted.

It is anticipated that the fund will deficit spend $98,680  for 2016, and $86,805 in 2017.

City Fire Department Budget the request is for $349,000.  Chief Reuther said the dollars include equipment replacement, and possible additional fire fighters.  Currently there are 36, with the retirement of Gordie Christianson.  He said the requests are a “need,” and not a “want.”

Jamestown Police Department, Chief Scott Edinger said $20,000 for body cameras is an option at this time.  He said $150,000 is needed for radio replacement, noting recent radio failures.

Municipal Court….

Finance and Assessment….computers

Engineering…..replacing old surveying equipment.

Inspection Department….hiring a plumbing and mechanical inspector, and an additional vehicle, and to replace a retiring staff member.

Forestry…request for  $5,000 each for tree removal and planting.  $5,000 for a dump trailer.

Civic Center….new amplifier system.  Concession stand stainless steel counter top and triple sink replacement to be compliance with state guidelines.    Replacing food warmers.  Floor buffer. Locker room plumbing improvements.  Security gate replacement. Curtain and backdrop replacement.

Some items will be taken from the 2017 General Fund.

Arts Center requests $12,000 for matching grants including expanding educational grants.

Street Department $100,000 for river tree and debris removal.

Also heard from was the Municipal Court….Community Service Program…. Construction Fund.

City Administrator Fuchs pointed out that the city has lost in 2016, and 2017 10% in revenues from the state, or $700,000. He added that if that amount had been available all the department requests would likely be possible.

He said each department needs to take that under consideration.

City Council Member Phillips is not in favor of no salary increases for city employees, and suggested that the City Council Members might take a pay cut.

Council Member Buchanan pointed out that when health insurance premiums were increased to city employees, the city absorbed the increase in premiums.

The 2017 budget will be introduced at the September City Council meeting.

After that meeting the proposed budget may be reduced, but not increased.

Mayor Andersen asked department heads to review their requests for any possible cuts in requesting.

The next city budget meeting will be scheduled for a date to be announced next week.

The meting was shown live on CSi Cable 67.