Othello city council discusses 2007 budget

Tourism fund approved; streets, utility tax discussed

OTHELLO — The Othello City Council approved tourism funding and discussed the 2007 preliminary budget Monday night.

The council approved $31,475 for all 10 organizations who requested funding at the previous workshop meeting.

The Chamber of Commerce will receive $9,360 and $5,773 goes to the Sandhill Crane Festival for 2007. They received the two largest amounts from the council.

The combined total for all funding requests was $39,120. The council approved less money than requested because tourism did not do what was expected in 2006.

"We're down to one hotel, Mayor Shannon McKay said. "That's definitely had a an impact on it."

The tourism budget was the only part of the budget approved because the organizations requesting funding had to complete their budgets by a certain date, City Administrator Ehman Sheldon said.

The council also discussed what to do with the 2007 $2.68 million utility tax fund.

Approximately $840,000 is expected to go the general fund, Finance Director Mike Bailey said. Fire reserves receives $50,000 toward the purchase of a new fire truck in 2008. A portion of a government obligation bond is paid with $186,180. The GO bond funded the construction of city hall, he said. Another $100,000 was set aside to be used for the city pool.

After money from the fund is taken out for regular uses, the expected remaining fund balance is $1.54 million for 2007, Bailey said.

The council discussed using some of the money for street projects.

"It's like the street fund is on steroids," Council Member Marc Spohr said.

Spohr said he might not concur with the council about the fund because it is large and pulls from other funds.

The city needs to catch up on streets, McKay said. Gravel will cost more next year, he added.

Approximately $637,000 is proposed for street repairs in next year's budget, Municipal Services Coordinator Jay VanNess said. There is still an additional $118,000 needed to cover other costs for the project such as engineering fees, he said.

The council discussed the possibility of taking the additional $118,000 needed for the project from the utility fund. Another $200,000 may be taken from the fund for the 2006 street budget.

The 2006 ending balance of the street fund is expected to be $100,000 in the red, Bailey said. Typically the city leaves an ending balance of $100,000 in the fund to make up the difference in money used from the utility fund, he added.

Council Member Tim Wilson asked for an additional $10,000 be added to the parks and recreation fund for playground equipment.

"10,000 bucks doesn't do anything," Wilson said. "I'd love to see us put more toys in that."

Sheldon suggested a parent committee be formed to decide what toys to purchase.

If approved $20,000 will be used for new toys.

A public hearing is scheduled for Nov. 27 at 7 p.m. at Othello City Hall to approve the 2007 budget.

Council members Eleanor Brodahl and Kathy Carlton were absent from the meeting.