The Centralia City Council was presented a balanced budget with $2-million in capital improvements and contingency funds to cover unexpected expenses at a work session Wednesday night.
City Manager Scott Randall says the budget includes a two percent increase in the property tax levy as well as a two percent wage increase for city employees. The budget projects no personnel cuts, filling all open positions including five officers in the police department and adds a second full-time code enforcement officer and a half-time clerk in the fire department.
Randall says the city will end this year better than expected.
“The city’s finances continue to be a struggle, no doubt about it. We’ve had a very good year this current year. That was due to some very large unexpected increases in a number of our revenue sources and strong cost controls. We expect to end the year with a sizeable surplus. But I will say that surplus doesn’t have a lot of flexibility it really just gives us the ability to cover cash flow needs.”
Randall expect further improvement with next year’s budget.
“Next year’s revenues look to continue to grow and I think prudently the staff and council have been supportive of sound investments. Happy that we are spending a lot more money on capital improvements than we have in the past and we are controlling our operating expenses so I expect our financial situation to improve. But it will take us a few years to get us where we need to be.”
Randall says the $2-million in capital improvements include replacement of a clarifier at the water treatment plant at a cost of $150,000, a number of new vehicles, as well as water, sewer, and street improvements.
Randall noted the city’s sales tax revenue is very strong and he’s included a 3.5-percent increase next year. He wants the city to take advantage of the new state law that increases the fee the city can place on each video gaming machine from $25 to the new maximum $250 fee for for-profit businesses and $125 for non-profit organizations.
Randall is recommending the city provide the Centralia Youth Center $55,000 instead of the current arrangement of $45,000 and paying for a part-time employee. He notes the city cannot control the cost of the part-time employee which is well over budget for this year.
Randall has proposed cutting the contract with the Centralia Foundation for recreation services from $172,000 to $90,000. The city council had earlier expressed concern about the amount of services they were receiving for the cost. Randall says contract negotiations are ongoing with the foundation board not happy with the proposal.
Randall announced Health Insurance will cost the city $1.8-million in the coming year, which includes an 8-percent premium increase July first.
Problems continue with funding for the police pension fund that is expected to spend $52,000 more than it takes in while already underfunded. The Centralia Municipal Airport Budget contains $14,000 for a part-time airport manager if Airgo stops providing that service.
Assistant City Manager Derek Sherman says Airgo is still trying to work out an agreement to get Chinese pilot students back into their program. Right now there are just two Chinese students remaining who are finishing up the program.
A $5,000 increase in the ESDA budget will allow for more adequate pay to coordinator Robert Moulder.
Randall is recommending all $1.7-million in federal COVID relief funding go towards the new water plant or replacement of the Carlyle Lake Waterline. A public hearing will be held on the proposed budget before the city council’s December 6th meeting. Randall is hopeful the city council will also adopt the budget at that meeting.
