No tax increases included or scheduled in general or enterprise funds
CHENEY – The City Council unanimously approved the first reading of the city’s nearly $32.74 million 2021 budget at its Nov. 24 meeting. The figure is roughly $560,000 less than 2020’s $33.3 million budget — partly a reflection of the recent loss of the city’s levy lid lift funding.
In giving its initial approval of the budget, council also approved the city’s two levy ordinances – general fund and emergency medical services – both of which dropped, partly due to the increase in the city’s total assessed property value. The other reason was the removal of the public safety levy lid lift – approved by voters in 2015 – due to a state and county determination that the lift could not be permanent as originally intended.
Instead, the property tax rate per $1,000 of assessed value decreased from $3.10 to $2.71. The result was what Finance Director Cindy Niemeier said was a balanced budget and a pretty lean budget.
“There are no rate increases suggested or in the budget for either of our utilities,” she added. “Everything is pretty stable.”
Niemeier said the city is realizing a little over $4.5 million in savings from expense reduction efforts in 2020, and is expecting to end 2021 with a general fund balance of $3.7 million.
According to a presentation at the Nov. 10 council meeting, the city is expected to take in just over $16 million in governmental revenue from taxes, licenses and permits, grants and other intergovernmental funds, charges for service, fines and other revenue. These funds will go towards the budgets of administration, finance, municipal court and parks and recreation departments.
While the levy lid lift has been eliminated, the city will be carrying over a remaining balance of $69,900 from the lift. Neimeier said this will be applied to public safety needs.
“Then it’s gone,” she said of the lid lift funding.
The city will fund $325,400 of public safety requests in 2021 through operating budget revenue rather than the levy lid lift as planned. Chief among these expenses is $131,400 for a new police officer, $70,300 towards the Fire Department’s volunteer program and $57,700 applied to debt service on the state loan for the department’s new main attack engine that went into service in 2019.
The budget also leaves some money in the Mayor’s Office’ contingency fund for unbudgeted expenses. Some of this will likely be applied to labor contract once those costs are known, along with other potential unforeseen needs.
“Department can speak to mayor and ask for this money if the need arises,” Neimeier added.
The council is expected to hold the second and third readings along with final passage of the 2021 budget at its Dec. 8 meeting.
John McCallum can be reached at jmac@cheneyfreepress.com.
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