Budget announcement sees slight revenue growth, utility hikes

Posted to Politics Watch by Wes Duplantier at 9:35 a.m., July 28, 2010

Wes Duplantier/Senior Staff Photographer

Columbia City Manager Bill Watkins gives his budget message at a press conference at City Hall. Watkins said the city is proposing a conservative budget for FY 2011 in anticipation of tough fiscal straits in the next few years.

City Manager Bill Watkins is giving his budget message for fiscal year 2011 this morning. He began speaking moments ago and said the city will be making cuts due to the economic downturn.

"Even though operating expenses are up slightly, we're making significant cuts in total budget expenses," Watkins said. "Some of this reduction involves sacrifice; some is just planning and executing."

According to a copy of his remarks obtained by The Maneater, the city expects revenues to increase 2.7 percent from last year, which means the city will see $9 million more in income, but most of that (about $8 million) comes from utility increases approved by voters.

The remarks say that there will not be any fee or tax increases, but the city is budgeting an 'unavoidable' utility rate increase that will cost about $8.25 per month for the average residential customer.

General fund revenue is expected to fall by $578,000 because several grants for police, public health and non-motorized transportation will be ending.

The FY 2011 would eliminate eight vacant firefighter positions and would close one of the two engine companies at Fire Station No. 2, on Columbia's northwest side, but would maintain an engine company at Station No. 9, on the city's northeast side.

The city does estimate that general fund sales tax revenue will grow about $185,000 or about 1 percent, which Watkins said was good news.

"Last year we did not expect any growth," Watkins said. "So this trend is somewhat encouraging."

Citing state budget cuts and slow economic revenue, Watkins said overall, the city's fiscal picture for FY 2011 will have little room for spending increases.

"Frankly, our current budget and what i propose for FY 2011 are based on getting through FY 2012, which we think will be a very tight year," Watkins says in the remarks.