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.
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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.