Council, city staff put final touches on budget

After the hearing, council members will use a roll call vote to adopt or reject the budget for the fiscal year beginning July 1. Spencer City Manager Bob Fagen gave council members a breakdown of expenditures in his meeting agenda memo:

* The city has proposed a levy rate of $11.72 which represents no increase from the 2008-09 budget. There are no new positions being added and for the most part employees will received a 3 percent increase in salary. Health Insurance premiums increased an average of 4.41 percent.

* According to county data, Spencer's taxable valuation increased approximately 4 percent. The added revenue came from a change in state taxation formulas.

"Even though the tax levy rate will remain the same, due to the state of Iowa rollback change, a resident will pay approximately $1.47 per month more per $100,000 of taxable valuation," Fagen said, in his memo. "A commercial property however will only increase 26 cents per month per $100,000 of taxable valuation."

* The proposed police budget, including capital improvement projects, increased 1.44 percent.

* The proposed budget for the communications center, including capital improvements, decreased .8 percent.

* The proposed fire budget, including capital improvement projects, increased 12.7 percent. The biggest portion of the increase is to purchase a new staff truck. When adjusted for the purchase of the staff truck the actual increase to the fire department budget is 6.8 percent.

* The proposed budget for the library, including capital improvements, decreased 1.4 percent.

* The total parks and recreation budget is down 13.8 percent. A good majority of the decrease in the department came from the fact that there were more capital projects in the 2008-09 budget year compared to the proposed 2009-10 budget.

* The proposed golf course budget, including capital projects increased 5.14 percent.

* The proposed airport budget, including capital projects increased 34.76 percent, primarily from a change in the accounting procedures for the airport that calls for property and liability expenses being allocated to the airport.

* The actual amount of tax dollars used for the debt of the city increased 1.49 percent.

* The proposed street division/central garage budget, including capital improvements, increased approximately 8 percent. The increase in the budget for the most part is to address the rising cost of fuel.

* The total cost of all of the projects listed in the 2009-10 capital improvement plan amount to approximately $9 million.

"Putting a budget together, especially in these uncertain times, can be a challenge," Fagen told council members in his memo. "You have to balance the need for basic core services with quality of life issues that set Spencer apart from other communities."

Fagen called city staff one of Spencer's biggest assets.

"Each of them has shown the ability to adapt to what ever challenge comes our way," he said. "The proposed budget is a product of a lot of hard work by each of the department heads as well as the library, golf, park and airport boards. The public safety, public works, progress and development and finance and personnel committees also spent a great deal of time and energy sifting through each of the line items and are joining with staff in recommending the budget that is before you."

The council also will consider action on:

* Street Improvements from West 18th Street from Fourth Avenue West to 32nd Avenue West and then North on 32nd Avenue to Highway 18 with assistance from a federal transportation grant.

* Nine bids for the West Side Storm Sewer project, which were received on Feb. 20. The project for the most part consists of reinforced concrete pipe storm sewer on Second Avenue West from the Little Sioux River to 200 feet north of West 3rd Street. The project also calls for storm sewer on Third Avenue West from West Second Street to West Third Street.

* Plats for Deerfield Park Third Addition, the Green Industrial Center and Brandt's First Addition.