Staff Writer
PRESQUE ISLE — City Council received the first draft of the 2013 municipal budget at Monday night’s meeting at City Hall.
City Manager Jim Bennett said the city continues to face difficult times and challenges as it tries to maintain services at a level expected by citizens, while keeping taxes manageable for residents.
“During the last few years, you have adapted, made changes, restructured and made other adjustments to preserve the city’s quality of life. I’m personally proud of what we’ve accomplished,” said Bennett.
Bennett noted that given present revenue available to the city, however, those services may not be sustainable for the long term.
“Today, we have fewer employees. In fact, annually our payroll and benefits have been reduced by $748,621.48, based on the normal work week of those positions. Through changes in staffing, schedules, practices, policies and management, overtime costs have also been reduced,” said the city manager.
Bennett said it’s becoming more and more a matter of “living within our means.”
“We’re in the greatest economic downturn in the last 70 years. Municipal governments have some dependence on state and federal government. State government has dependence on federal government, which is highly dependent on the economy,” said Bennett.
Bennett noted that despite economic challenges encountered by the city over the last few years, “we have become a much more efficient organization. I strongly feel that we have not compromised those cherished attributes that make Presque Isle special.”
The city manager told councilors the proposed budget before them would “not require an increase in the tax rate.”
“It wasn’t easy. The department heads requested $1,555,951 in new spending, most of which was in new capital ($1,155,435). With an excess of $102,000,000 of fixed assets the city is responsible to maintain, this is not unreasonable. This is especially true when considering the deferments that have been occurring over the last half of the decade,” said Bennett.
To obtain the same tax rate (mil rate of 23.5 or $23.50 per $1,000 in valuation), a number of changes were required. Bennett said first, it is obvious that the capital requests were significantly reduced.
“I have suggested increasing capital by $18,751 over the 2012 final appropriation of $582,825,” he said.
To reach certain goals, Bennett said it will be necessary to reduce employee levels again in 2013.
“Besides not funding a couple of vacancies (one firefighter and a half-time position at City Hall), I am also recommending we eliminate a 16-hour-a-week position at the library, the full-time library secretary and the facilities manager (effective the end of May). Combined with previous reductions in staffing levels over the last few years, the total annual savings in wages and benefits is approaching $1 million. These are not one-time savings, they are achieved each and every year,” he said.
The changes, according to Bennett, can be achieved “by modifications in current operations,” including changing hours of operation at the library.
“To achieve the firefighter savings, we are recommending three changes. First, we will make available up to four student live-in firefighters. Second, in the summer months, I am recommending we hire summer employees from May 1 to Sept. 1 to provide additional coverage 24/7. That coverage will reduce the need for additional overtime. Finally, two of the firefighters will be scheduled to work days (14-hour shifts) instead of the 24/48 shift. These changes,” said Bennett, “once fully implemented will provide the same level of coverage afforded today while reducing annual costs by $42,316 annually. In some cases, the coverage levels will actually be enhanced.”
Bennett said Solid Waste would “see the least amount of changes since my employment.”
“The proposed budget does not increase the established rates. In order to increase the reserves as well as cover shortfalls, I am recommending that the blue recycling bags be removed from the bundles. Any blue translucent bag may be used for recycling. The official recycling bags will remain available but at a cost of 80 cents per bundle of five. Finally, I am recommending that we eliminate the $15 per ton rebate for commercial waste that is currently being offered. These changes, together with an increase of $104,068 in property tax subsidy, will stabilize the program,” said Bennett.
Bennett said councilors would need to wait until after Election Day to discuss the Recreation Department’s portion of the budget, since voter feedback will play a role in the future of the department.
Bennett went on to discuss the state’s revenue sharing program and how the annual reduction of $535,000 from the property taxpayers in Presque Isle did not result in increased property taxes.
“It did, along with the nearly $2 million of raided funds over the last few years, result in deferment of capital and reductions in employment levels,” noted Bennett.
Bennett said the state budget year runs July 1 to June 30. Therefore, beginning in July, the city will receive an additional $200,000 of revenues.
“That is, of course, given that the state does not once again use this account as a convenient piggy bank to fund other state priorities,” said Bennett. “those funds have been added to the budget. If another raid occurs, those funds will need to be removed in the spring.”
If that occurs, Bennett said the cuts “will have to be absorbed by the employees” and will “likely impact the levels of services we currently offer.”
Bennett said while city officials have “found ways to continue to significantly provide the same services without increasing taxes, decisions made in this budget will significantly impact the years ahead.”
“Our collective goal for the year must be to find a way to build the financial plan for the future — one that reinforces the premiere status of our community while developing the plan that will allow us to not only be responsive to the taxpayer financially but also allows us to continue to thrive in this new reality,” said Bennett. “The climb up the hill has been tough and steep to date. Yet I am afraid we have not reached the peak,” said Bennett.
“I don’t doubt that we will face the new challenges with the same success of the last few years. We will need the entire community to join in the discussion and not the advocacy role that has divided other communities facing the same challenge,” said Bennett.
The proposed municipal budget for 2013 is just over $11 million. As has been done in the past, the entire budget will be available electronically on the city’s website within a few days at www.presqueisle.govoffice2.com. A hard copy will be available in the city clerk’s office at City Hall, as well as at the Mark & Emily Turner Memorial Library — both located on Second Street — for those that might not be able to access the document electronically. For more information, call 760-2785.
Council has budget workshops slated for Oct. 15, 22 and 29.
