Thursday, July 22, 2010

Oskaloosa City Council: Mulling through budget

by Dennis Sharkey

Oskaloosa city leaders have begun work on a new budget but are spinning their wheels.

Last week council members looked at a preliminary budget prepared by the city’s accountant and presented by City Treasurer Polly McInroy. In its current form it would call for a 22 mill increase in the tax levy. However, McInroy said on Tuesday that an increase is highly unlikely. She said the council has not increased the mill levy rate in several years.

The city council is not sure they’re looking at the right numbers.

Mayor Mike Boyd at a meeting earlier this month stated he wanted to double the city’s police personnel budget. His intent was to have a total budget of $100,000. However, the proposed budget has $116,000 allocated.

Other department heads also found some discrepancies in the budget.

McInroy said many of the receipt numbers were also incorrect. She said the accountant appeared to be using some old numbers.

The council has asked for increased spending. Council President Kelly Hattemer has asked for close to $70,000 to make much needed repairs to the city pool.

McInroy said the accountant suggested cutting the pool money in half, which drew a negative reaction from Hattemer.

Councilman Allen Wise objected to cutting transfers to the equipment reserve fund and was supported by City Superintendent Bill Heard. Wise said one piece of machinery was being held together by “bale wire and chewing gum.”

The city also has to plan for payments beginning this year for the sewer project. The city is obligated to pay two payments of $55,000 this year. Payments then jump to $150,000 twice a year in four years.

The payments on the horizon have most council members concerned when you combine the issue with a uncertain economy.

“We don’t know what’s coming yet,” Councilman Mike Paavola said. “We sure don’t want to be spending all of our reserves when we still don’t know if this thing is done and I don’t think it is.”

The city must also find a way to pay for a new City Hall. The city purchased the old Harvey’s Hardware building last year. The city currently has more than $400,000 in a capital reserve fund that can be used for the City Hall.

“I don’t want to spend it all down because we’ve worked hard not to spend that and to have it for something like that,” Wise said about spending reserves.

McInroy said she hopes to have a finalized budget by the next meeting on Aug. 5.