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http://www.omniture.com --> Oregon Road Conditions & Cams Advertisement Email Story to a Friend May 2, 2006 Medford budget to fall short By MEG LANDERS Mail Tribune The city of Medford expects a $4.5 million shortfall in its 2007-09 budget and city officials say the most likely place for cuts will be in employee pay. "We've had a history of our payroll growth exceeding our income," said Medford City Councilman Jason Anderson. "Over the next year we'll be looking at ways to work with that." Alison Chan, the city's finance director, said projections show the city will spend $91.6 million from the general fund in 2007-09, but will bring in only $87.1 million in revenues, a $4.5 million difference. That budget cycle is more than a year away, but as the city prepares to deal with a modest shortfall in its current budget, plans are being discussed to head off a bigger problem. Chan said there is no immediate crisis, because her projections show a $12.1 million carryover from the current biennium. That would leave enough money to set aside $6.9 million in contingency funds and still be able to cover the $4.5 million operating shortfall, but would leave only $700,000 million in carryover funds. The city also is dipping into its carryover in the current budget, as expenditures outpaced the budget by $4 million. But a $14 million carryover from the previous budget covered the shortfall and left some breathing room. Chan said property taxes have been increasing steadily by 6 percent a year, while average total personal services costs have increased 7 to 8 percent a year. Personal services includes wages, new positions, retirement, health insurance, unemployment insurance, workers compensation, overtime and temporary help. Chan said fire and police staff make up 72 percent of the personal services cost in the general fund. For a firefighter/emergency medical technician, compensation climbed from $68,429, including benefits, in 2004-05 to $71,576 in 2005-06, a 4.6 percent increase. The wage portion of the cost climbed from $43,890 to $45,523. For a beginning level parks department position, total compensation went from $40,003 $24,664 in wages in 2004-05 to $41,770 no wage increase in 2005-06, a 4.4 percent increase. Anderson said that's where he hopes the council can make changes. "We have to start holding that line," he said. "Over the next year we'll be looking at ways to work with that." Doug Detling, the city's human resources director, said employee contracts are up next year in several departments, including parks, police, mechanics, construction and maintenance and in a union contract. "We have to negotiate contracts," said Detling. "We're going to be giving that message out." Wayne Botta is the Teamsters' union representative for employees in several departments. He said Medford staff wage increases are comparable with what city employees are getting elsewhere in the state. "It's the cost of doing business," he said. "We put those people at the average of their competitors. Medford needs to stay in the market." He said the cost of living increase is about 3.8 percent for the year so far. "We've always been able to use common sense ... and settle this at the table," said Botta. "He Anderson can have a position, but ultimately it can be out of their hands and our hands." Chan said the budget numbers are only projections provided so the council can start thinking about the next biennium — and nothing to raise alarms over. "Now we have to figure out how we're going to increase revenues or reduce expenditures," she said. "We have a year and a half to figure out priorities." Advertisement s Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback www.bingo.com Home Security Systems Trunks, Footlocker Custom Build Computers Discount Hotel Reservations online casinos news Ashley Furniture HomeStore Send Flowers Southern Oregon Loans California Casinos GMAT Prep Windermere Van Vleet Sports Equipment Online Casino Reviews Online Bingo Entertainment Guide Online Casino Fundraisers Sudoku Online Casinos Canada Online Pharmacy