Council narrows in on ’23 budget
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City of Warren staff acknowledge that they budget conservatively.
But how conservative is too conservative?
City council spent some time trying to answer that question during the last of three budget sessions held Monday night.
Total expenses in the proposed budget for 2023 total $9.8 million. That includes $1.170 million from fund balance to balance the budget.
Councilman John Wortman asked whether that estimate is "being overly cautious with what we're anticipating having to take."
A similar projection was made last year which resulted in a "$1.7 million swing … in favor of greater revenue to the city."
"We did have a deficit of 583,000 in 2019," Finance Officer Jessicca Byler said, which was "offset by a surplus of $574,000 in 2020."
Byler said the timing of a grant as well as pandemic impacts could explain the change. "We do budget conservatively which I don't think is a bad thing," she added.
"How conservative is conservative?" Councilman Maurice Cashman asked.
"Having money in the bank at this point, we should feel fortunate we have the general fund that we do," Byler said.
Acting City Manager Mike Holtz said the city tries to keep $2 million to $2.5 million in the bank.
"In the spring and fall," he said, given the flow of tax funds, "you gotta get through."
"(We) want to try our best to avoid tax anticipation (notes)," Byler said.
Total tax revenue for the city is approximately $6.4 million. "When we do the budget," Byler said, "taxes are used to balance the budget of each department."
One source of revenue on the rise is the earned income tax.
Councilman Maurice Cashman projected that EIT could exceed $4.3 million. "That would be an all-time high," he said. "Would you anticipate that?"
"(It) will be close to $4 million, yes," Byler said. "Wages are increasing. So this is based on a percentage of wages."
Council informally approved a $2,500 increase in its contribution to the Warren County Fourth of July Celebration.
Holtz said the committee asked for the increase. He said the city has contributed $7,500 since 2013.
But this isn't a straight cash donation. The city totals the cost of fire, police and Department of Public Works services required to host the event and then subtracts $7,500 from that total bill. The rest is then paid by the Fourth of July Committee.
He said the level has been held at $7,500 since instituted in 2013.
"I know their costs are probably going up," he said, noting the total cost of city services for the celebration was in the area of $12,000.
From a capital project perspective, Holtz said there is "not too much this year" -- paving, CDBG street work, elevator repairs, among others – but did project $20,000 in needed repairs to the fountain at the point downtown.
"It has been there more than 10 years now," he said. "We've been talking about getting it fixed up…. It is starting to show its wear from the water and the weather."
Looking holistically at this budget draft, Wortman said it is "much more on point" compared to last year and does not include a tax increase.
"(We) can begin to make some of these infrastructure improvements… that could grow the City of Warren," he said.
Byler said a draft of the budget could be ready for public review in a couple weeks.
"It's close," Holtz said.
Council traditionally approves the budget for the following year at the December meeting.