Revenue from growth is temporarily plugging budget gaps created by inflation, but Engen said new money isn't going toward better services or new programs. The level of services is staying flat, the menu of programs remains static and the city is adding few new employees.
“We're just doing what we do,” Engen said.
In the next few weeks, council members will hear details on the budget by department. They also will take comments from the public.
Meanwhile, Engen said the growing burden of gasoline, diesel, natural gas and electricity costs on the budget give him heartburn, and the problem “makes me nuts.” This year, the increase is a $289,000 problem, he said.
The budget report says overall budget increases are expected to cost a taxpayer with a $200,000 home an additional $9 in taxes next year.
The following are some highlights from Tuesday's presentation and the mayor's introduction to the preliminary budget:
General fund expenses are expected to be $43.2 million. That's $41.1 million in revenue plus $2.125 million that will carry over from the current year. According to the mayor's introduction to last year's budget, revenues funded an estimated $40.4 million expenses in 2008. The increase is 5 percent.
Growth in the city has slowed. That means new construction is expected to bring in $600,000 in 2009 compared with $720,000 in 2008. Ward 2 Councilwoman Pam Walzer pointed out the decrease is 17 percent. The projected revenue also is an estimate. “We make our best guess and move forward fearlessly, and in this case, conservatively,” Engen said.
The state of Montana caps the city's ability to raise property taxes at half the rate of inflation, so the city is perpetually behind, Engen said. “That creates an automatic imbalance that we address every year,” he said. This year, it means most fees are going up. The increases will help cover the costs of labor, fuel, electricity and insurance.
A new transportation impact fee is expected to bring in $1 million and cover traffic problems due to growth.
The city is paying more this year toward debt service, with the idea that payments will decrease considerably next year. The city requires 3.74 mills, or $390,000, to make general obligation debt service payments, according to the preliminary budget.
The city does not plan to increase its contributions to its health insurance plan. The plan is performing well and expected to show a year-end balance of more than $1.75 million, an increase of roughly $225,000 over last year's balance, according to the preliminary budget.
The general fund is expected to fund the capital improvement program to the tune of $813,307 this year compared with $1.1 million last year, according to the budget proposal. The budget was balanced by decreasing an allocation for park maintenance. Engen said the Parks and Recreation Department in the past has not used all its maintenance money. Also, a citizen survey showed people in Missoula want more parks, but they're not too dissatisfied with the current level of park maintenance.
The city attorney's office is getting a half-time clerk to handle an increase in jury trials with a change in the state public defender system.
n The Missoula Fire Department is getting four new firefighters, but a federal grant brought in by Chief Tom Steenberg pays for those positions. “Thanks to Tom for that,” Engen said.
The budget recommends Parks and Recreation get $50,000 for a “conservation lands management plan.” Parks and Rec made a number of requests, but this one has been on the front burner the longest, Engen said.
The city would like to hire a third-time person to smooth out sidewalks so people don't trip and fall and sue the city. The measure would protect public safety and public funds, Engen said. “The time we spend on trip-and-fall in the city is remarkable,” he said.
The preliminary budget has salary increases for the Office of Planning and Grants at $32,710 and also $70,000 for work OPG does for the city. An interlocal agreement defines the amounts.
The city recommends putting $15,000 toward the Forum for Youth and $76,467 to the Crime Victim Advocates program. Engen said a dollar invested into CVA probably saves $5 later on, but the grant for the program disappeared this year.
n A Hells Angels rally means an extra $139,371 so the Police Department has enough staffing and resources to handle the event, Engen said. He'd rather see that money go elsewhere. Ever the purveyor of out-of-the-box funding ideas, Ward 5 Councilwoman Renee Mitchell suggested using just a third of that money to pay off whatever hotel or business was hosting the group to decline the reservation. Engen said he knew he was beating a dead horse, but he reminded council members that the Hells Angels spend money on drinks and hotels. A local option sales tax would mean profit to the city from their revelry.
According to Engen's introduction to the preliminary budget, the city is expected to levy 219.62 mills. It's an increase of 3.48 percent over last year. Of that amount, some 1.76 percent is due to voter-increased debt service. Some 1.72 percent is due to increased general fund support, the report says.
Before launching into his presentation, Engen praised city finance director Brentt Ramharter, the city finance office, department heads and the budget team for assembling and balancing the budget.
“A special thanks goes to Mr. Ramharter, who manages our budget's vast complexities and sometimes emotionally charged details with professionalism and an eagerness to find solutions,” Engen wrote in his preliminary budget report.
The sparsely attended Budget Committee of the Whole meeting prompted one council member to suggest taking attendance. The following members showed up for the presentation: Ward 1 Councilmen Dave Strohmaier and Jason Wiener; Ward 2's Walzer; Ward 3 Councilman Bob Jaffe; Ward 5's Mitchell; and Ward 6 Councilors Ed Childers and Marilyn Marler.
After the presentation, Ward 5 Councilman Dick Haines and Ward 4 Councilman Jon Wilkins arrived.
Reporter Keila Szpaller can be reached at 523-5262 or at keila.szpaller@missoulian.com.
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