by Wayne Lee – reporter/photographer
The annual city budget committee hearing took place June 2 where the 14-member committee voted unanimously to approve a budget of $41,248,270 for the upcoming fiscal year. The budget is based on, among other factors, new home construction which can vary year to year based on the economy. It also has to do with state revenue sharing funds as well as the city’s share of state liquor, gas and other state taxes.
According to City Administrator Aaron Prunty, while the city is projecting a budget higher than expected income, the city’s 10-year projection doesn’t show a negative impact until 2035-2036. The city has two major sources of revenue. One is property tax revenue, which provides 42% of the city budget and system development charges for local new home construction.
Commission member Doug Deitling noted the city only receives 17% of property tax revenue while the county receives the rest. The committee went on to discuss a grant to add two police officers to the Eagle Point police force with the requirement that the grant will cover three years of service, but the city will be responsible for the next two years. It was noted the grant covers $250,000 for the first year, $271,000 in year two and $287,000 for year three.
Other items of interest were the 49 flower baskets around town sponsored by the local chamber of commerce as well as the sponsorship for the Food and Friends program at the local senior center. Other items touched on a new roof for city hall and other expenses such as a new copier machine and a new mail and postage machine as well as signage to the building better identifying city hall and the Ashpole Center. The police department is also looking for a used vehicle for a detective to use as transportation.
The budget also includes a 3% wage increase for city employees. However, the city is seeing an increase in credit card fees as more people are paying utility bills on credit due to the current economy. In the end, the 14-member commission voted unanimously to approve a budget that anticipates a deficit of $742,000.
