Saturday, June 14, 2008

Belen's budget down, set up as 'conservative'

Jackie Schlotfeldt News-Bulletin Staff Writer; jschlotfeldt@news-bulletin.com

Belen Belen's 2008-09 preliminary budget will be about $6 million less than last year's — but it contains fewer new projects.

The city council approved the figures at a special meeting on May 27.

The $18.4 million budget is lower than last year's budget, but City Manager Sally Garley said that is primarily due to fewer appropriations received from the legislature for new projects.

Gross receipts tax (GRT) was also down by approximately $300,000 from what was projected last year, although projections for the month of May came in higher.

"We based revenues on last year's revenues, and we're hoping for more, but we don't know because of the economy," Garley said. "Basic operations and maintenance is what we're doing. It' a very conservative budget."

While the budget will be tight, the good news is full-time employees will receive a 48-cent per hour, $1000 a year, across-the-board raise, with part-time employees realizing a prorated portion. The raises will cost the city approximately $130,000.

No positions will be cut from the budget, Garley said, but three open positions — one each in the mechanical, plumbing inspection and parks and recreation areas — will not be filled at the present time.

"We're fortunate we're not going to have to cut any positions," Garley said.

The city is also pleased with a 10 percent reduction in general liability insurance premiums, and although employees will see a slight increase in their health insurance premiums, the cost will be minimal and will vary depending on what type of coverage plan they choose.

Where the city did see a need for a budget increase was in fuel costs. It budgeted an additional 5 percent to cover rising costs. "We hope that will be enough," Garley said.

Increases in costs for fire and police dispatch services as well as animal control also added to this year's budget.

One place the city cut expenses was with travel, eliminating it from the general fund — except for departments such as fire, police, water and wastewater that have mandated training sessions that have to be attended. Garley said departments could also do line item transfers if they feel training is necessary and cut expenses from another area in their departments budget if need be.

A total of $159,240 in capital outlay requests was made throughout the different departments in the city and include new computers, fencing, office furniture, maintenance equipment, exercise equipment for the recreation center and a portable office building for the solid waste department.

Also included was a request for new vehicles for law enforcement. Garley said the city will have to lease-purchase four new police vehicles instead of buying them outright this year. The city will also lease-purchase other equipment such as copiers, a skid steer, a backhoe and a postage meter that will cost a total of $126,343.

"Our capital outlay requests were very minimal," Garley said.

The preliminary budget will be submitted to the state for approval and will then come back before the council for a final OK, Garley said. At that time, some of the numbers could change.

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