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City cuts budget

Chamber of commerce says it may disband without support

Marion City Council voted Monday to trim its proposed 3.9 percent property tax increase to 0.3 percent by eliminating $9,400 to pay for a 2 percent across-the-board pay raise for city workers and by canceling a $7,500 contribution to a reservoir watershed program.

Despite warnings that the Chamber of Commerce might have to close its office as a result, the council did not restore $2,500 in funding for the Chamber cut from the budget in 2010. The city last year trimmed its annual subsidy to the Chamber from $10,000 to $7,500. The council voted Monday to continue the lower $7,500 subsidy in 2011 despite pleas that the full $10,000 be restored.

At the same time the Council approved a proposed 5.2 percent increase ($4,687) in economic development funding, mainly to pay for increased marketing coordinated by Economic Development Director Doug Kjellin, separate from Chamber efforts.

Also unchanged in the budget will be:

  • An estimated $48,000 to inspect and repair the city’s dike to comply with post-Katrina safety regulations of the Federal Emergency Management Agency.
  • A 15.8 percent increase ($31,502) in street and alley expenditures, mainly for concrete work to install curb cuts and ramps and to patch damaged streets.
  • A 49.1 percent increase ($6,549) in expenditures for the city’s baseball complex.
  • A 26.4 percent ($70,000) reduction in the amount of profits from city electric, water, and sewer utilities will be transferred to the General Fund instead of being left in a separate Utility Fund to rebuild cash reserves that have dwindled from $515,633 last year to $140,978 this year.
  • Planned capital expenditures including a new police car, replacing a current pickup; a new mower for the cemetery; and a new loader. A used water truck, replacing one that was termed barely roadworthy, was in the plan but may be scrapped since the loader needs to be replaced.

All comparisons are to actual current-year spending, projected over 12 months.

Steve Smith, the lone council member absent from a budget planning workshop July 30, recommended dropping both the watershed contribution and the across-the-board raise.

Smith stated although he supported the WRAPS program, the city had other concerns, and he did not support a mill levy increase to support WRAPS.

“It’s our drinking water we’re talking about,” Councilman Bill Holdeman said.

“We have a water plant that will take care of that,” Smith said.

Olson added the real issue was sediment at Marion Reservoir.

During the budget hearing, held prior to the regular meeting, chamber president Don Noller pleaded with the council to reconsider the cut and allot the chamber the same amount it received this year.

Noller provided a list of chamber activities and how the organization supported the community. The chamber office is the “go-to” place for information, he said.

“There is a lot of benefit to the community and businesses,” Noller said.

During a recess, chamber of commerce treasurer Gene Winkler said the chamber office would close without the additional support.

Later in the meeting, during open forum, chamber member and Central National Bank President Todd Heitschmidt said he was disappointed with the council’s decision.

“I agree we need to have some change,” he said, adding community leaders were considering a convention and visitors bureau to take the place of chamber of commerce.

“Part of that will involve funding from the city,” Heitschmidt, pointing out that most CVBs are funded through a “bed tax” — an additional sales tax paid by those who patronize motels. Unfortunately, Marion has only one motel, limiting the amount of sales tax revenue.

The council approved an ordinance to increase tax revenues for the upcoming budget year. However, when administrator David Mayfield plugged in the new budget figures after the meeting, the mill levy increase would be .172, less than the increase required for an ordinance.

“This is just a simple fix for next year,” Smith said. “We will probably have to increase the mill levy next year.”

Last modified Aug. 26, 2010

 

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