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40 °F Forecast | Road Cams Saturday, November 27, 2004 Today's News | Classifieds | Autos | Homes | Jobs | Tempo | Health | Community | Home Delivery SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics Tempo AP News Weather Classified Archives Site Map SPECIAL SECTIONS Since We Asked Outdoor Journal Menu Guide How To Guide Wellness Connection Readers' Choice Real Estate Showcase Joy Magazine Homelife Magazine Wedding Guide Passport to the Rogue Valley EXTRA Newspaper in Education Personals Movie Times TV Times E The People MARKETPLACE Find a Car Find a Home Find a Job Classifieds Place an ad eSouthernOregon Automotive Communities Entertainment Publications Recreation Calendar CUSTOMER SERVICE Frequent Questions Advertising Information Home Delivery Employment Contact Us Media Kit Network Affiliate Oregon Road Conditions & Cams Email Story to a Friend July 15, 2004 Medford council weighs $1.6 million increase to budget By MEG LANDERS Mail Tribune Midway through Medford’s first two-year budget, city officials will consider $1.6 million in new spending requests, although the increase would be partially offset by interest savings on the city’s employee retirement plan debt. The increase includes requests for new hires in the planning department and upgrades to the city’s sewage treatment plant and police dispatch system. Raising the 2003-05 spending plan from $184 million to just under $234 million — a $49.4 million increase — also reflectsa change on paper, adding in $11 million in grants and the cut-rate refinancing of a huge city debt. "It’s budget authorization," said Finance Director and Deputy City Manager Jef Faw. "We’re actually reducing expenditures ... we are saving $14 million of city taxpayer money over the next 24 years." In May, Medford refinanced its employee retirement (PERS) payment with a $31.9 million bond — a move that will save the city $531,990 in the next fiscal year and $14.6 million over 24 years. Advertisement Medford established the new debt service to pay off its portion of the state’s $17 billion PERS deficit. The change lowers the city’s PERS debt payment from 13.5 percent of staff salaries to 5.4 percent. The proposed supplemental budget, to go before the council today, also includes $11 million in grants. The largest is $8.3 million from the Oregon Transportation Investment Act III (OTIA III) for repairing and replacing of city bridges, said Alison Chan, assistant finance director for Medford. There is also a $17,500 wetlands planning grant for the planning department and a $30,260 Bear Creek bank restoration grant for the parks department. The $1.6 million in new spending requests includes $315,400 for additional planning department staffing, $578,490 for upgraded electrical service to the sewage treatment plant, and $726,000 for the reorganization of Rogue Valley Central Communications (RVCCOM, Medford’s 9-1-1 dispatch office). Chan said the remainder of the $4.9 million will be transferred between funds in the budget. Nearly $2 million of that amount is from a city PERS fund that will move to a city debt service fund after the transfer. Also, she said, more than $2 million in the general fund earmarked for dispatch services will be pushed over into the RVCCOM fund. Parks and Recreation Director Scott Archer said this is the first time he has worked with a biennial system. "I think it’s fabulous," he said, adding that, for agencies with unstable budget systems, it would be too difficult to plan two years out. But for Medford, it saves a lot of staff time and energy. "We don’t have to prepare a budget every single year," he said. Critics have said the two-year system removes the public from the budget process, but Faw disagreed. "I believe the budget committee and the general citizens have the same involvement (as with an annual budget)," he said. He said he hopes that anyone who has concerns will attend today’s public hearing. "This is basically house-cleaning," he said. Reach reporter Meg Landers at 776-4481 or e-mail [email protected] If you go ... What : The public is invited to voice opinions on the supplemental budget during the public hearing portion of the Medford City Council meeting. When : Noon today Where : Council chambers, City Hall, 411 W. Eighth St., Medford Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2004 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback ADVERTISERS A D V E R T I S E R S SPECIAL SECTIONS Auto Finder Job Finder Home Finder Joy Magazine Homelife Magazine Tempo Readers' Choice Real Estate Showcase Since We Asked Outdoor Journal Moving to Southern Oregon? Volunteer Opportunities