The proposed budget represents a 3.7 percent decrease over last year's city budget. Dunlavy said the budget will still allow the city to maintain its present level of services without raising revenues.
"There will be no new taxes or rate increases," Dunlavy said.
Revenue levels for 2008-09 are projected to remain flat. That combined with increased costs and the anticipated expense of defending the city from two major lawsuits means lean times for the city, according to Dunlavy.
"When income is flat and expenses are up, you have two choices -- increase revenue or decrease expenses," Dunlavy said. "We've chosen to do neither. We will be using some of our reserves to balance the budget this year."
Dunlavy cited the cost of gasoline as one example of rising expenditures. The direct cost of gas alone has gone up $67,000 over last year's budget -- a 54 percent increase. That figure does not include the cost of oil for asphalt involved in street repairs. That figure has also risen drastically, said Dunlavy.
The city also has budgeted $600,000 to defend itself against two major lawsuits. One is by Grantsville City regarding proceeds from the sale of the Utah Industrial Depot. The other is by Tooele Associates, the developer of Overlake, for alleged misuse of impact fees and violations of the development agreement.
"No programs or departments will be cut but there will be no increases," Dunlavy said. "Unfortunately we will not be able to add any additional police officers this year."
Tooele City Police Chief Ron Kirby had requested two new officers, Dunlavy said.
The tentative budget calls for no capital expenditures other than purchasing five new police cars. There will be no new positions added to the city staff. Positions that are vacated by retirement or employees leaving for other work will be evaluated on an individual basis before a replacement is hired, said Dunlavy.
There is one piece of good news for the city budget. The company that provides insurance for city employees has projected that insurance rates will increase by only 3 percent, compared to 17 percent last year. Dunlavy's tentative budget calls for the city to cover the 3 percent increase.
The expense restrictions apply only to the city's general fund. The parks, arts, and recreation tax fund and park impact fees are in a separate budget. The expenses already approved and the work underway in park improvements will continue.
The budget includes a 3 percent cost-of-living raise for city employees. However the mayor and the city council members indicated they would not accept the raise for themselves.
"When you are in lean times, I do not feel that I, as an elected official, should accept an increase in my compensation," Dunlavy said. The members of the city council agreed, stating that they would also not accept raises.
Dunlavy emphasized that this is the first crack the council has had at the proposed budget, and changes could still be in the works. A public hearing, before final adoption, is scheduled for June 18 at 7 p.m. at Tooele City Hall.
tgillie@tooeletranscript.com
Post a Comment
