Centralia City Manager Kory Smith has presented a balanced $28-million budget for the coming fiscal year. Smith told the city council during a work session Wednesday night that he took a very conservative approach to the budget particularly when evaluating the General Fund.
“The directors were in charge with budgeting opportunities, appropriations to reflect said mission and goals, and ensure the city’s overall mission is being carried out. Our department heads and myself have been diligent on creating a workable budget. A budget under what we’ve seen in the past and something I believe the council can be proud of.”
Smith says the budget reflects the city’s most significant needs highlighted by the raw water line project and construction of a new water treatment plant. Smith is hopeful all funding is in place and bids can go out on the new water treatment plant and new raw water line project by the end of the year with construction in 2025.
To help cover the costs of the water treatment plant, the city will be adding an additional 50-cent water filtration plant replacement surcharge for each 1,000 gallons of water used in 2024. That will bring the total surcharge to $1.00 per thousand gallons inside the city and $1.25 for those outside the city.
The budget also includes $600,000 the city is hopeful of receiving through the Open Space Lands Acquisition and Development grant it applied for earlier this year. Proceeds will be used for significant upgrades to Fairview Park.
Excluding the OSLAD grant, revenues are $700,642 less than projected during the current year. Smith says that is being driven by a projected loss of $332,380 from the Corporate Personal Property Tax and $13,503 drop in telecommunications taxes. Oil royalties and utility taxes are projected to drop $42,257.
To help offset the decrease, the city increased its 2023 tax levy by 4.95 percent creating $68,925 in additional revenue. Smith notes this is only the second increase in the city’s property tax levy in the last 11 years.
The motor fuel tax budget includes the final payment on the Gragg Street project totaling $363,000. The MFT budget also includes $698,000 to pave Sunset Drive, Pine Street and Sycamore Road. $597,390 is budgeted to redo the sidewalks on Airport Road from Jordan Elementary School to Edgebrook Lane as part of the Safe Routes to School Program. The grant will cover $250,000 of the cost.
