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Polk County News 2A Polk County Itemizer-Observer • January 20, 2016 Monmouth looks to find $100K savings City will cut costs, increase revenue By Emily Mentzer The Itemizer-Observer EMILY MENTZER/Itemizer-Observer Independence City Councilor Nancy Lodge attaches a boutonniere to Monmouth Mayor John Oberst on Jan. 13. Mayors take a moment to shine Past improvements, upcoming projects spotlighted at State of the Cities By Emily Mentzer The Itemizer-Observer MONMOUTH — The mayors of Monmouth and Independence gave up- dates on what the two cities have accomplished in 2015 and a little bit of what city projects are in the works for 2016 at the annu- al State of the Cities ad- dress on Jan. 13 at Western Oregon University. About 50 people gathered in the Pacific Room of the Werner University Center to hear mayors John Oberst and John McArdle speak. Oberst spoke about the projects completed in the last nine years and touched on a few future projects, namely the completion of the Main Street Park am- phitheater and the reloca- tion of Monmouth Power and Light. He spent some time talk- ing about Monmouth being a bicycle friendly city, em- phasizing the need for more safety edu- cation for both bicy- clists and drivers. Oberst mentioned Oberst the city budget and the pre-budget meeting held on Jan. 12, but did not mention the city’s efforts to cut $100,000 because of future increases to the Oregon Public Em- ployee Retirement Services funds (see related story on Page 2A). McArdle detailed new con- struction and future con- struction projects, especially Riverplace Apartments and the developments at the old Valley Concrete site. He also unveiled the new IndyWorks app, which allows citi- zens to communi- cate issues to city workers quickly. McArdle McArdle touted the importance of Monmouth Independ- ence Networks (Minet), and how that has given Inde- pendence an edge in attract- ing companies such as FCR, a call center located by Roth’s Fresh Market that em- ploys 200 people. The center opened in 2015. Oberst also talked about the importance of Minet, calling it as vital to city sys- tems as water, sewer and roads. Neither mayor discussed the roughly $25 million in debt the cities took out jointly to build the system, which has yet to be able to consistently pay those bills. Minet management has stated repeatedly that the company is stable, able to pay its operating costs and expenses, but has not been able to pay the millions of dollars owed by the cities on its behalf. Citizens attending asked questions about where to find more information on how to get involved in city programs or how to know about events going on, par- ticularly for visitors. For more information or to view the video coverage: www.youtu.be/Xvh4m45Ow Gc. Newspaper use #102 And you thought our only use was bringing you the local news and advertisements. Delivered every week! Itemizer-Observer 503-623-2373 • www.polkio.com MONMOUTH — The city of Monmouth’s budget committee asked city offi- cials to find ways to save $100,000 in the 2016-17 budget. The move came after hearing that costs are fore- cast to increase by about $100,000 in the fiscal year 2017-18, mostly because of PERS. “You could pay for that now, or you could wait an- other year,” City Manager Scott McClure said. He said the budget com- mittee could decide to keep the budget as is, or start saving now for the ex- pected hit next year. “It’s getting tighter,” City Manager Scott McClure said about the budget. “We need to pay attention. Re- serves are getting low, but it's not an emergency yet.” Making cuts in the city’s budget won’t be easy, Mc- Clure said, as the city al- ready runs lean. However, a longstanding practice of budgeting with less than expected revenue has given the city a small cushion. For example, city man- agers would plan their budget at 93 percent of the expected income, Finance Director Mark Dunmire said. “The budget is telling you you’re in a crisis, but the actuals say not really,” Dunmire said. McClure and Dunmire asked the budget commit- tee if the city should con- tinue that practice, which had built up a 40 percent reserve at one point. Mayor John Oberst said that when he was elected, he, the council and budget committee decided to start spending that re- Government serve, making improve- ments in the city and parks, such as the down- town beautification, the splash fountain in Main Street Park, Madrona Park improvements and the Main Street Park am- phitheater project. “Even with that, you have low-balled income and high-balled expenses,” Oberst said. “We’re hitting that point where we need to make adjustments in our spending to stop catching up.” In all, the budget com- mittee asked managers to look at raising internal franchise fees and payment in lieu of taxes. Franchise fees are pay- ments made by utility companies — and city- owned utilities — for use of the public rights-of-way. The money is spent in the general fund. Payment in lieu of taxes is a payment made by a tax-exempt property to help support city functions. McClure said increases in franchise fees for sewer and power would likely not cause immediate in- creases in rates for Mon- mouth customers; howev- er, the water fund does not have as large a reserve as sewer and power, there- fore customers would like- ly see a water rate increase with higher franchise fees. Dunmire did not report current franchise fees be- fore deadline.
