Iola’s 2017 budget took a clearer shape Monday, as City Council members discussed ways to close a projected $800,000 shortfall over the next 18 months.
While most of the items will not be decided until the Council’s July 25 meeting, City Administrator Carl Slaugh discussed several options available to pare spending.
Slaugh already has ordered a 5-percent spending cut for the remainder of 2016, thus closing a projected $400,000 shortfall for this year, and giving the city a larger cash carry-over for 2017.
In addition, Slaugh cut 5 percent out of the city’s equipment reserve fund, and reduced a $1 million transfer to $750,000 from the electric fund to equipment reserve. A portion of those savings — about $140,000 — will go to the general fund.
In addition, Slaugh said paring by 1 percent the city’s pay increases for 2017 would save another $60,000.
Canceling a rock purchase for chip-and-seal projects would save about $100,000, made possible by the city’s “recycling” of used rock from past years.
Ending the city’s relationship with Van Scoyoc and Associates, a Washington, D.C., lobbying firm, will save $25,000 for the rest of 2016 and $50,000 for 2017. With those cutbacks, Slaugh said, the city should reallocate $25,000 to an industrial fund for economic development.
Slaugh added that ending that relationship should come from a Council’s vote.
With those cutbacks, the city could balance the budget, Slaugh said, with an ad valorem tax hike of about 4.47 mills, which would cost the owner of a $100,000 home an extra $51 or so in property taxes.
COUNCIL MEMBERS found other spending cuts to pare that projected tax hike to what they said was a more palatable number.
By extending the planned rotation for chip-and-seal projects from four years to five, the city can cut $200,000 from its 2017 spending. Iola also could push back the purchase of a second patrol car for the Police Department, Councilman Jon Wells said.
“We’re talking another mill right there,” Wells said.
If the city also implemented a $2 monthly increase in trash pickup fees, from $8.50 to $10.50, Iola could get by with a much smaller property tax hike, perhaps 1.5 mills, Wells concluded.
OTHER potential ways to save also were discussed.
