Thu Sep 02 2010
by Laura Freeman
Reporter
Hudson -- City Council on Dec. 16 approved a $27.4 million budget for 2010, along with the five-year budget forecast, by a 6-1 vote.
Council member Kristina Roegner voted against both, saying she opposed projections that had higher expenditures than revenue.
The general fund begins 2010 with an estimated carry-over of $8.89 million and will add $18.5 million in revenue for a total of $27.4 million available for expenses.
Expenses are estimated to be $18.8 million, leaving a carry-over for 2011 of $8.6 million. Expenses exceed new revenue by $280,456.
"We have before us a budget with a negative run rate, that is where projected expenditures are greater than our projected revenue," Roegner said. "Simply stated, we are planning on spending more than we expect to take in; thus we will be spending down the city's savings and we do not have to."
Council member Hal DeSaussure said the reason the city has $8 million carry-over is strong fiscal management over the years.
"We are in an economic downturn," DeSaussure said. "What happens is anyone's guess. Because of the last 10 years [of fiscal management], we are well situated to weather the storm."
Roegner argued that the five-year forecast through 2014 shows the negative trend continuing.
DeSaussure said the reserve fund is for this type of situation, and no one knows what will happen in 2011 through 2014.
Council member William Wooldredge said he, too, had concerns about greater expenses than revenue, but he approved the budget.
Council member John Jeffers said the carry-over in excess of $8 million takes care of "cyclical changes in the economy."
The carry-over enables the city to provide services without cutting personnel, Jeffers said.
A majority of Council members agreed not to cut leaf collection and street repairs.
"We are not in a position to cut out services at this time," DeSaussure said. "We are able to maintain them."
DeSaussure said the city has taken in more than it spent in the past and can spend some of the reserve now.
Council President David Basil said the reason for the carry-over is to "bridge the ebb and flows in the economy."
Basil said the city staff made cuts and Council will be vigilant in the future.
Council member George Roth said he didn't like a negative run rate but said it wasn't a trend and adjustments could be made to the budget if necessary.
Council member Doug Hasbrouck agreed.
"I'm not at all concerned with 2010, but if the economy doesn't correct itself, we'll have to make some changes," Hasbrouck said.
Some of the major expenses in the 2010 budget include: police at $4 million, wastewater at $1.68 million, street construction at $1.74 million, street maintenance at $1.68 million, engineering at $1.1 million and storm water at $1.1 million.
E-mail: lfreeman@recordpub.com
Phone: 330-688-0088 ext. 3150
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