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As financial times grew tight, the city took serious measures to
hold or cut costs. Six employees were cut, and infrastructure and
maintenance projects were put on hold as part of the measures to
keep finances in the black. A scrutinizing eye was kept on the
balance between revenues and expenses as each year's budget was
compressed a little more.
As the nation and local economy began to bounce back, the city
has been able to increase the budget again. City streets are getting
attention once again. Elm Street will be completely renovated this
summer. The remainder of Broadway Street from Logan to Union will be
resurfaced soon.
Once again, the June report from city treasurer Les Plotner was
good news to the council, with city coffers continuing to show
healthy balances. Plotner reported that the general obligation bonds
have $6,610,574. Some traffic signal expenses will be coming out of
that. The general fund had a balance of $573,217. There was $488,000
in the capital expenditure fund and $8,543,477 in the investment
fund. He summarized various fund amounts and said that interest
rates are improving for a five-year reinvestment cycle of some of
those funds.
Some of the revenue that has aided in the healthier bank balances
is there because of a recommendation by Plotner made back in
December of 2003. He suggested the city consider the opportunity to
increase revenues by using a state program. In the Simplified
Municipal Telecommunications Tax program, municipalities can ask for
up to 6 percent of the tax collected from certain utilities. This
does not require voter approval, and the funds are usable in any
manner the city needs to use them. ["City
juggles figures to meet budget"]
[to top of second column in this article]
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We're beginning to see how that's been paying off, Plotner said. You
need to take advantage of opportunities like this that won't keep
holding you down with the consumer price index, which you can't
change, he said. The city first
approved the lowest rate, 1 percent, when the program became
available. The council agreed to increase that percentage from 1
percent to 3 percent in the spring of 2003. Plotner is now advising
that the council consider increasing it from 3 percent to 6 percent.
- At 1 percent, $72,000 was collected in 2003.
- At 3 percent, $171,000-plus was collected in 2004, and it is
on target for the same amount in 2005.
- At 6 percent, it is projected to bring in $254,500 in 2006.
The 2006 figure accounts for the increase for only two-thirds of
the year because if applied for in September, it would be enacted in
January, and the increase in funds would not be seen until April.
So, for 2007 the total would possibly be an even higher figure.
"You need enhancement of revenues, and you don't have many ways
to increase revenues," Plotner said. You can use it the way you
want; that money is not restricted, he said.
The council is taking the matter under advisement.
[Jan
Youngquist]
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