Balancing the city’s budget

By the end of Thursday’s budget workshop, Stanwood City Council had balanced the budget, but it cost them $200,816 in cash reserves.

“Almost every city in the state is (using reserves),” said Mayor Dianne White, “and we’ve been trying not to.”

They tried hard. City council reviewed expenditures and sources of revenue, shaving the budget as tight as they dared.

Beginning the meeting with a general fund shortfall of $257,816, council transferred $25,000 from the payroll leave contingency fund to the general fund.

Council also reduced the fund for administrative travel, trainings and meetings by $2,000 and reduced the city attorney’s fund by $5,000. These monies were added to the general fund, too.

Finally, council transferred $50,000 from the contingency fund to the general fund, lowering the shortfall to its final resting place of $200,816. This will be made up through the use of reserves.

Council did have one opportunity to gain another $10,000 for the general fund, but it would have meant freezing a 2 percent cost of living wage increase for nonunion employees, a decision they weren’t comfortable with.

“(Since we’ve had to make cuts) we’re already asking people to do more work for the same amount of money,” said Councilmember Leonard Kelley.

“Now we take away their cost of living raise? That’s borderline highway robbery,” he added.

White and other council members agreed such a decision would send the wrong message to the community.

Instead, council expressed the desire to show what little appreciation they could for employees.

“We want to send the message that we value our employees,” said Councilmember Timothy Loney.

A last minute decision was made to approve $700 expenditure for grant applications, which could garner the city some funding. Council agreed it was a worthwhile tradeoff.

The next city council meeting will be a public hearing regarding rate increases for water, sewer and cable television tax 7 p.m. Monday, Nov. 30 in the school district’s administration building.

A second reading and adoption of the proposed 2010 budget will take place Dec. 10, also at 7 p.m. in the school district’s administration building, 26920 Pioneer Hwy, Stanwood.

Staff Reporter Jeremiah O’Hagan: 629-8066 ext. 125 or ohagan@scnews.com.