The Salem City Council reviewed the General Fund portion of the Fiscal Year Budget for the year beginning May 1st Monday night learning the budget is balanced.
City Manager Annette Sola says some department head requests had to be cut to stay in the black.
“It looks good. Unfortunately, it is tight, but I think that’s what everybody is seeing right now,” Sola said. “In years past we had some wiggle room that we aren’t comfortable with this year. We’ve got plenty of money in reserve so I’m not trying to sound any alarms. We are in really good shape, but we want to stay that way and then be prepared for emergencies as they do come up. Right now, it is balanced, and I’m very thankful for that portion of it.”
One of the biggest projects is repair to city hall. The cost of electric system repair and putting a new roof on city hall is estimated to cost $298,220. The expense will be taken from reserve funds which will still allow for five months of operating capitol. Remaining repairs will be budgeted out of the next budget.
Sola says a 2.75 percent wage increase for operating engineers and 4 percent for members of the fraternal order of police. Both contracts have one more year and will need to be renegotiated in late fall of this year.
There is a $36,000 increase in personnel cost at city hall due to the transition to a new city manager. There is a new $4,000 yearly rental cost for a postage/folding stuffing machine. The city has spent about $8,000 so far to place city utility bills in regular size envelopes in hopes they will be delivered on time. Sola says it has helped some, but some utility bills are still not being delivered on a timely basis by the Postal Service.
The police department will have a surplus due to several retiring officers and replacing them taking longer than anticipated. One new squad car is in the process of being delivered while another has been cut from the budget. The use of Enterprise Leasing will end because it has not been beneficial to the city.
The Public Works Budget includes a lease agreement for a storage building at 714 West Main and construction of a new fence around the maintenance building in Tully Park damaged during construction on the building.
The new building/code enforcement position has been added to the Economic Development budget. Professional services are included for a comprehensive plan, survey work, and legal billing for condemnations and building inspections.
$25,000 in replacement of amenities at the Aquatic Center are budgeted.
The Animal Control Budget is being reduced due to more than $15,000 in cash donations, food and shelter supplies. A cage for dangerous dogs will be built.
The Department of Emergency Management will get new portable radios and a vehicle mount for the top of one of their vehicles.
The budget includes $30,000 for the purchase of two new zero turn mowers for the parks department.
The rest of the budget will be discussed at the April 7th city council meeting.
