Othello council OKs $25.4 million 2020 city budget

OTHELLO — The Othello City Council talked money at its Monday meeting, passing the city’s $25.4 million 2020 budget while also amending the current year budget and approving the city’s property tax levy for 2020 as well.

They also talked about the status of the Cabana Motel, which was recently closed after state regulators revoked the motel’s transient license — which allows guests to stay for more than 30 days.

Because of that, Mayor Shawn Logan told council members that the city has revoked the Cabana’s business license.

“They have not applied for a building permit,” Logan said. “It’s just kind of dead in the water until they improve their property.”

Council member Angel Garza, however, was concerned that the closure of the motel would make it more difficult for people relocating to Othello for work — especially with the major expansion of McCain Foods. Housing, especially rentals, is very tight in Othello.

“It’s good for people coming to work,” Garza said. “It keeps that tax base in Othello.”

“There’s still time” for the Cabana owners to apply for a business permit and solve the state’s concerns about their property, Logan said.

For most of the meeting, however, council members talked money. After weeks of public hearings and discussion, council members unanimously passed the city’s $25.4 million overall city budget for 2020.

The budget’s 23 funds encompass everything from daily, ongoing operations (the general fund) to streets, sewers, water and garbage.

The city has budgeted $6.6 million for general operations in 2020, including $3.2 million for law enforcement and roughly $490,000 fire protection, which includes $100,000 set aside to help pay for a new fire truck in a few years.

Othello has also budgeted around $960,000 for the Parks and Recreation Department, including $484,000 for sports and recreation programs and $175,000 to run the city’s pool and waterpark.

On the revenue side for the general fund, roughly $4.6 million is expected to come from taxes — including $1.7 million in property taxes the council unanimously approved on Monday — with the rest coming from a mix of fees, charges and grants.

According to City Finance Officer Spencer Williams, the city’s property levy rate is $3.14 per $1,000 of assessed value — unchanged from the 2019 rate.

Othello has also budgeted nearly $10 million in its water fund, with $6.3 set aside to pay for a new 2.5 million gallon reservoir and drilling and building a pump station for Well No. 10. In the water fund revenue, around $6.1 million is coming from a combination of state and federal grants and $3.6 million from commercial and residential water sales.

Council members also unanimously voted to permanently reduce the city’s minimum general fund balance to $400,000 from $500,000. According to Williams, the council had been regularly doing this each year for the last few years.

“This just makes it permanent,” Williams said. “And the council can change it any time.”

Charles H. Featherstone can be reached at cfeatherstone@columbiabasinherald.com