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June 26, 2004 - Subscribe - Contact Us - Rate Card - Place an Ad Valley&State Backpage O&E Sports Archives Classifieds Faith&Beliefs Obituaries Revels April 28, 2004 City looks at $93.7M budget By Steve Zimmerman Ashland Daily Tidings It is that time of year again for the City of Ashland and its department heads. The proposed 2004-05 budget has been released, and it has increased $5,136,168 or 5.8 percent over last year. The fiscal 2005 budget is $93.7 million, up from last year's budget of $88.6 million. "We have a sizable budget as far as the document goes," Lee Tuneberg, Ashland director of finance, said. "Extrapolating out 18 months is not an easy task. We have been working on this for months. We started a little later this year in that we had some things to work on. And some of the things we worked on in advance of the budget are still not done." By starting later, it allowed the city to get more actual information this year that will help make better projections for next year. Among the highlights of the budget are the reductions in the general revenue fund, Community Development Block Grant fund and the Street fund. Increases this year are eaten up mostly by telecommunications and electric costs, with the former amassing debt service. Tuneberg noted that he and his staff had several challenges to meet in putting together this budget. "Increasing costs and changes in revenue streams always present challenges to us," he said. "Especially if we have to extrapolate out the year and one-half. Personnel costs continue to rise, retirement is always an issue in what we budget to pay PERS (Public Employee Retirement System)." The PERS issue is tied up in a legal battle in Salem. The State Legislature has provided cities with some relief from the upward trend of retirement costs for public employees in Oregon. Many of the issues in that decision by legislators are being appealed in the courts, however, and so cities are unsure of the costs at this time. "The legislative action that occurred last year is under appeal and will be heard by the courts this summer," Tuneberg said. "We have had to budget for the additional amount and we do not know how that will change or whether we will have a higher amount to pay. "A couple of years ago, our rate was 16 percent. In the process last year, they told us the rate would be lower, 11 percent. We now do not know where it is going to go, It could go back to 16 percent depending on what happens in the courts." Health care is also a major concern in the budget process. "We have seen several years of 20-percent increases in our health care program. The latest news is that it is going to be less than 20 percent this year," Tuneberg said. "It might be very good for us to set that extra money aside in case that PERS court case comes out to where our rate is higher." Tuneberg said the vibrancy of the community is a leading factor in the budget process. And that makes the budgeting process interesting. "Ashland has a lot going for it and a lot of activities going for it," he said. "And that always makes for challenges in putting together the budget itself. It is not inherently good or bad that the amount of the budget goes up or down." Tuneberg said the size of the capital improvement budget, how many projects the city is going to do and what kind of financing or internal borrowings the city is going to do can make a difference in the size of the budget. "I remember the first year I got here, there was a lot of discussion about our budget exceeding $90 million," he said. "And it has several years since then. Last year, we dropped below and this year it is above." The first step in the public hearing process is Thursday, when the budget message is deleivered at 7 p.m. in the City Council Chambers. Departmental budget presentations begin May 3 with the city recorder, police and fire departments. Other departments present their budgets May 5, 6 and 12, with a full budget committee meeting on May 13. The first reading of the ordinance to approve the budget is scheduled for June 1 with the second reading on June 15. DailyTidings.com Home Page Valley&State | Backpage | O&E | Sports | Archives | Weather | Classifieds Columnists | Faith&Beliefs | Obituaries | Revels | Subscribe | Contact Us Copyright 2004 Ashland Daily Tidings and Ottaway Newspapers All Rights Reserved Click Here Site Search: .:Advertisements:. RESOURCES - Mail Tribune News - ODOT Road Cams