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Shady Cove turns finances around Finally covers maintenance, emergencies SHADY COVE -- Shady Cove will enter the fiscal year with a balanced budget and $1.1 million in the bank. That's quite an accomplishment for a town that had only $2,000 to its name four years ago, said Mayor Tom Anderson. Shady Cove's $2.62 million proposed budget for 2000-01 includes adequate reserves for maintenance and emergencies for the first time in its 27-year history. Shady Cove pulled its finances in order by limiting spending and increasing revenue. It created development fees as a way of making growth pay for itself, collecting $300,000 over the past two and a half years, Anderson said. The city tapped other resources, including federal grants and loans to pay for much-needed sewer system repairs. It has a new motel, which is expected to help generate $30,000 in lodging taxes this year, compared to $11,193 in 1997-98. And being debt-free makes the city's budget process an easier one, Anderson added. "In 1991, when I was appointed chairman of the budget committee, we were given a budget that was out of balance," said Anderson, the city's mayor since 1996. "It took seven meetings, two and a half to three hours each, to prepare it. "But this time, in one meeting that lasted two hours, we produced a workable, realistic budget," he said. "That is impressive.'' The City Council is expected to adopt the proposed budget in June. The highlights include: A $131,000 increase in the $427,600 police budget. The increase comes from a state grant to design a new police station and an estimated $50,000 from the sale of surplus or donated property to help pay for a new building. A $34,586 increase (from $506,414 to $541,000) in wages and benefits, both medical and retirement, for the city's 12.5 employees. Health insurance premiums increased significantly and union employees will receive a 3 percent raise, with a 9.7 percent raise for the administrator, 8.2 for the public works director and 6.6 for the police chief. The budget committee used a statewide study in giving raises that would be competitive among similar-sized towns, Anderson said. $116,200 in the park system development charge fund, which includes $27,000 collected from builders during new home construction. Some of this money is reserved for a new city park on the Rogue River. $205,700 in the growing street fund, which was $98,004 in 1997 and $167,100 last year. This money is for filling potholes, replacing pavement, grading, cleaning ditches, sweeping, striping and removing road kills. $740,300 in the sewer fund, down from $1.65 million. The city this year finished Phase I of a sewer rehabilitation project and will complete Phase II this fiscal year, again using state and federal grants and loans, Anderson said. Shady Cove's general fund revenue totals $823,500, which comes from a variety of sources, including raft rental taxes and traffic fines. Only $64,700 comes from property taxes because Shady Cove's permanent tax rate is 55 cents per $1,000 of assessed value, the lowest of any city in Jackson County, Anderson said. "We get more money from Pacific Power franchise taxes, $67,000, than we do from property taxes," Anderson said. Shady Cove residents will also find on their property tax bills this fall the city's 62-cent sewer bond and 55-cent police levy for a total local tax rate of $1.72 per $1,000 of assessed value. Voters approved the sewer bond in 1980 to build Shady Cove's first sewer system and approved the five-year police levy in 1998 to pay for additional officers. Today's Edition : News | Sports | Business | Weather | Tempo | Classifieds Mail Tribune Copyright � The Mail Tribune 2000, Medford, Oregon USA