Soap Lake 2012 budget maintains city services
SOAP LAKE - Soap Lake's $2.9 million budget for next year is a no frills affair that sustains current city services and staffing levels.
The Soap Lake City Council adopted the final 2012 budget following a second public hearing.
"Each year's budget process represents new challenges and this budget building session was no exception," said Soap Lake Mayor Wayne Hovde, citing the dual difficulties of declining state revenues and an enduringly unstable economic climate.
The city's combined fund for streets and other major expenditures next year is $943,572, a slight decrease over 2011 because of one less police officer position and changes to health insurance coverage for city workers, Hovde said.
"Due to the increased cost of health insurance the city decided to cover only the cost of the employees themselves," he said; adding next year's operations budget provides a 2.5 percent pay increase to make up the difference.
Another reason Hovde said 2012 expenditures will be lower than last year is the completion of a major reconstruction of Division Street between Second and Seventh avenues, which was funded in large part by a state Transportation Improvement Board (TIB) grant.
The city has applied for more TIB grants and Hovde said he's hopeful two projects could see funding next year - a sidewalks and lighting project on Main Street and a repave of several streets east of Daisy, including Second, Third, Fourth and Elder.
If the projects do go forward, Hovde stressed it would be thanks to the efforts of the current city government.
"That money and those streets are the efforts of this council, this mayor and the potential million dollars per year for the next three years are also through the work we have done here," he said.
The city will start next year with a beginning general fund balance of $86,331, which is about $26,700 more than what was projected for the start of 2011.
Property tax projections are up by about $1,000 over this year's budget, and retail sales tax estimates are up by about $10,000.
Event permits are projected to be much fewer in 2012 - from this year's 125 down to 50 - although the city expects to see more camping tourists next year, projecting $25,000 in revenue from Smokiam Campground fees, or about $5,000 over this year's budget.
Hovde expressed concern over the likely lack of state liquor profits next year, saying Gov. Chris Gregoire proposed remaining liquor profits and taxes should no longer go to cities.
"That's a real hit for any little town," he said.
The city expected to receive about $18,000 in revenues from liquor excise taxes and profits next year.
Generally speaking, most city funds are in good shape with exception of a mineral water fund, which maintains a system of lake water taps and is more than $9,000 over budget next year, Hovde said. Because the fund produces no revenue it will likely remain in the red, he said, while the rest of the funds will sustain themselves as long as the city carefully manages its money.
"We realize these tough economic conditions present a challenge to both the staff and our citizens," he said. "I'm proud of our accomplishments and appreciate the dedication and commitment of the council and our hardworking and well-trained city staff."