By Leslie Moriarty
Herald Writer
SULTAN — Faced with a deficit expected to be about $106,000, the city council decided Wednesday to shift some funds among departments and save money in police costs in an attempt to keep the general fund in the black.
The actions solidify the city’s general fund, which is used for day-to-day expenditures, and reallocates some expenses to specific department budgets that had money.
Following a public hearing, the council approved the 2001 budget amendment proposed by the council’s finance committee and city clerk Laura Koenig.
The council approved the budget variations, but will have to give the measure a second vote as required by law at its next meeting Oct. 17.
Sultan was looking to cut about $106,000 from its general fund in the face of economic hard times. Mayor C.H. Rowe and clerk Koenig said the city expected to have more income this year, but a slowdown in new building permits and cuts in state income tax equalization funds has left the city looking at a general fund that’s in trouble. Rising utility costs have compounded the problem.
The council’s finance committee recommended moving $76,689 of expenditures from the general fund to other budget categories in an attempt to make the general fund healthy. This doesn’t shift the deficit, however, because money exists in the other funds to cover costs. Koenig said this action makes the budget better reflect where the actual expenditures come from.
She said it takes some costs, such as paying the city attorney and the mayor, and allocates those salaries into other budget categories.
The rationale is that the mayor and city attorney work for all departments within the city and should be paid accordingly with portions of their pay coming from the street department, the building department, and so on.
Some organizational dues and emergency services also were removed from the general fund and shifted to other departments for some additional savings.
In addition, some $60,000 will be saved during the next three months in the police department by cuts in salaries and benefits offered up by the city’s 12 police officers.
Additional 2001 police pay increases are being put on hold and the officers are giving up their extra holiday pay. Travel, expense accounts, training and vehicle and equipment maintenance accounts have been cut.
The city now has to amend its contract with the union before the budget amendment can be considered valid.
You can call Herald Writer Leslie Moriarty at 425-339-3436
or send e-mail to moriarty@heraldnet.com.
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