vernonia’s
voice
city news
june
2008
07
Proposed Vernonia City Budget Presented and Debated
By Scott Laird
On May 5th, Budget Officer M. R. “Dick” Kline
presented the Vernonia City Council with the 2008-09
Budget Message and a bare bones proposed budget for
the upcoming fiscal year. Kline noted “unique and de-
bilitating circumstances” in his message and spotlight-
ed some historic decisions that have now put the city in
a precarious financial situation.
Kline pointed to the combination of cost overruns
of $270,433 in the OA Hill Sidewalk Project and the
construction of the Community Learning Center that
were un-budgeted. He also noted the addition of a fifth
police officer in 2005 and a fifth public works utility
worker in 2006 that cost the city about $136,000 per
year. And the decision to close out a Water Refund-
ing Bond early in 2006 using required loan reserves
from another loan left the city not in compliance, and
needing to refund those reserve requirements in the
amount of $119, 950. All of this totaled a shortfall of
over $500,000 without any planned additional revenue.
Kline also noted the impact of the flood, and the fact
that city recovery projects are only funded at 75% of
costs by FEMA, leaving the city to fund the other 25%
of repairs from an already depleted budget.
Kline listed some key assumptions in his resource
allocation and appropriations in the budget. All unan-
ticipated revenue will be needed and used to help re-
turn the city to a balanced financial state, including the
proposed sale of twenty acres of city property. He will
no longer use inter fund loans to balance funds. He
asked all city employees to accept a one year morato-
rium on step and cost of living increases, although it
was questionable whether the employee unions would
accept this request. No additions to staff will be ex-
pected. Any additional expenditures to the proposed
budget will require adoption of new fees or charges or
the reduction in proposed staffing and program levels.
Kline listed the priorities that were recognized
when the proposed budget was created. The primary
function of the City of Vernonia is to provide public
works services and public safety services. Secondary
functions include public service programs such as the
library, parks and Community Learning Center.
In his message Kline reiterated that the city “…
has come dangerously close to financial insolvency…”
because of incomplete funding for past major projects,
inaccurate financial reporting, uninformed increases in
staff levels, the assumption of a too-heavy debt load,
and on top of it all, a major natural disaster. Kline ex-
plained that through accurate reporting of revenue and
expenditures during the past year and the knowledge
gained, and with a commitment by the city to “…
live within it’s means…”, the city can get financially
healthy again.
Among trouble spots in the proposed budget was
no funding for City Planning Services, for appropriate
Legal Council, for a Public Works Director, for a Fi-
nancial Officer, and for a Director for the Community
Learning Center.
The City Budget Committee began meeting to dis-
cuss the proposed budget and look for possible solu-
tions on May 13 and continued meeting throughout the
month. Among the decisions made by the committee
was to recommend no transfers from the general fund to
help balance city enterprise funds, which ideally would
be self-sustaining. This was expected to free up money
for the general fund to pay for needed administration and
oversight at City Hall. The committee looked for and
made recommendations to city council to increase fees in
Parks, and to institute fees for water debt retirement and
street maintenance. The committee also recommended
council authorize studies in water, sewer, and storm wa-
ter to gain a better understanding of operation needs and
for needed rate and fee increases. The sewer remains
an unknown quantity, as loans for the completed Phase
I construction will need to begin being paid this year,
and the ability of the city to construct Phase II and pay
for it is in doubt. It is expected that increases in sewer
rates will be needed once more information is gathered.
The city is currently investigating alternative methods of
wastewater treatment and removal.
The Budget Committee is also considering other
income options including leasing of the Vernonia Air-
port, operation of the Community Learning Center by
volunteers and increasing anticipated revenue, and a
transient tax on room and campground rentals. The
Committee is also investigating cost cutting and effi-
ciency measures that could be implemented.
The City is scheduled to hold budget hearings on
June 16th and will need to adopt a budget by June 30th.
Vernonia to Replace Interim City Congressman Wu (cotinued)
special projects or programs) approved. The Congressman explained his advocacy
Administrator
of the earmark process as a way to take a small percentage of national spending out
By Scott Laird
Vernonia Mayor Sally Harrison has announced that the city is replacing Interim City
Administrator Aldie Howard with a new Interim City Administrator, James Johnson.
Johnson was scheduled to begin on June 1st.
Johnson arrives in Vernonia with an impressive resume and a reputation as a “Mr.
Fix-it” since retiring in 2002 after a four year stint as City Manager in Eugene. He’s
done local government consulting work, and has acted as Interim City Administrator
in Creswell, Oregon, as Interim City Manager for Roseburg, Oregon, and Interim
Director for the Lane County Air Protection Agency. In all three positions he helped
recruit his eventual permanent replacement.
Johnson stepped in to a difficult role in Eugene, a city known for its contentious lo-
cal political scene and was recognized for his ability to get along with the city coun-
cil. His calm manner, neutral language, and patience have all been acknowledged.
He is known as someone who can work with local governments and help them find
solutions to their problems.
“I am excited about bringing Mr. Johnson on board,” said Mayor Harrison. “He
brings us a wealth of experience, knowledge, skill, and expertise. We needed some-
one who has been through this before, and I think we are going to benefit from hav-
ing him at the table and working for Vernonia.”
“I have had a long and fun career, and have always looked for opportunities to
serve,” said Johnson about his new position in Vernonia. “Vernonia was a place that
looked like it needed help, and I think I will be able to serve the community well. I
am looking forward to getting started.”
Johnson has a Masters Degree in Urban Planning from the University of Oregon
and has worked mostly in Lane County. He has worked as a Planner and Com-
munity Development Director for Lane County, County Administrator for Lane
County, and as Manager of the Department of Library, Recreation and Cultural
Services in Eugene.
of the hands of the President, allowing congress to control some funds.
The congressman noted that he is working to do everything possible to assist the
community in its recovery efforts. Funding for school construction and repair has
been, and continues to be, primarily the responsibility of state and local govern-
ments, and because of this traditional American understanding, federal funds that
go through the Congressional appropriations process are normally not eligible to be
used for school construction or repairs. However, because of his deep concern for
his constituents in Vernonia, he has requested federal funds for rebuilding projects
that could be eligible.
Congressman Wu mentioned that he has made four specific requests for funds for
Vernonia:
1. Federal funds for the reconstruction of all three Vernonia schools at a different
site in an amendment to H.R. 3021, the 21st Century High Performing Schools
Act. The decision to not allow this request was made after careful consideration
by House leadership and an overt decision to fund school construction, as op-
posed to renovation, only in Hurricane Katrina affected school districts.
2. Federal funds for the Vernonia School District to replace equipment and other
supplies that were lost due in the flooding. Although construction and repairs are
not eligible for federal funds, equipment and other supplies are.
3. Federal funds for the City of Vernonia to assist the city with any repairs, reno-
vations, or replacement of city assets, including improvement of the downtown
corridor streetscape.
4. Federal funds for the City of Vernonia to assist in the repair or replacement of
the city’s water and wastewater treatment system.
Congressman Wu ended his visit to Ver-
nonia with the Oregon Solutions team
meeting at the Vernonia Scout Cabin.and
commented about school relocation efforts,
“ Federal Government needs to be part of
the solution, not part of the problem.”
5th Annual
Rummage Sale
June 20, 21 & 27, 28
July 4, 5 & 11,12
8am - 4pm
$5 Bag Sale
Last Weekend
Banks Christian Academy
22785 NW Fisher Road
Buxton, OR 97109
503-324-4500