Councilors worry about tapping city’s cash reserves

By Matt Neznanski

Gazette-Times reporter

With mild concern over spending into city reserves, the City Council’s budget advisory group on Tuesday recommended the council add $1.4 million in services to next year’s budget.

Voicing unease over lowering reserves, Budget Commission member Rich Carone said the city’s budget is heavily weighted to staff, which, he said, increases the chance of staffing cuts in lean times.

“When we have spending in excess of incomes, we are vastly increasing the chances of having to do layoffs,” Carone said. “In my business the two times I’ve had to do that were the two worst times of my life.”

Back in February, business leaders warned the commission to be cautious of lowering reserves during a shrinking economy, but the group decided then that spending was prudent.

Commissioner Bill York said the city’s almost $9 million in reserves are expected to grow again in the coming year to about $9.5 million.

“I fully expect we’ll be right in that range,” York said. “I’m very comfortable in the size of our reserves.”

Most of the city’s $107.8 million budget is tied directly to specific programs. Public discussions, like those of the Budget Commission, focus on services paid for by property tax collections because those funds are not earmarked for programs.

Following a series of public meetings, the commission chose to grant additions to several city departments.

• Parks and Recreation will hire a full-time operations supervisor and replace aging boilers at Osborn Aquatic Center.

• Fire and Rescue will receive annual money for emergency management planning with the county, one-time cash to connect Fire Station 5 to the city’s fiber optic network and reinstate the emergency vehicle replacement fund.

• The library will continue staff positions for volunteer coordinating, early literacy and long-range planning, and increase the hours for the interlibrary courier.

• Community Development will create a long-term planning position.

• Expanded bus service hours and frequency and a third year of the Beaver Bus program were approved.

The commission also accepted citizen requests from the Majestic Theatre, the Corvallis Environmental Center, parents of Garfield School and the Corvallis Sustainability Coalition.

The City Council will review the recommendations, make any changes and adopt the budget in June.

Matt Neznanski can be reached at 758-9518 or matt.neznanski@ lee.net.

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