Monroe mayor's budget keeps the status quo

Every year, Monroe Mayor Geoffrey Thomas works with city staff and the city council to plan how the city will spend its money during the upcoming year.

Based on council direction, Thomas' 2016 preliminary budget is balanced, meaning the city's expenditures are roughly equal to its revenues. It is also considered status quo, which means the city is planning to provide the same level of services next year without increasing revenues. The budget was presented to the Monroe City Council in October by finance director Dianne Nelson, and must be adopted in December.

Per state law, the Monroe City Council will hold public hearings for residents to provide feedback on the 2016 preliminary budget, the first of which takes place 7 p.m. Tuesday, Nov. 10, at Monroe City Hall.-á

The city's general fund, which covers all governmental operations other than street maintenance and utilities, is typically the main focus of the budget preparation process. The general fund is primarily supported by tax dollars, with 41 percent of the revenue coming from sales tax. Other general fund revenues include property tax, which accounts for roughly 17 percent of revenues, and utility tax, which covers another 17 percent.

The remainder of the revenue comes in through permit fees, grants, fines and penalties and charges for services. Sixty-one percent of general fund revenues pay for public safety, while the remaining 39 percent pays for things like parks and recreation, planning and permitting, city administration, legal services, the finance department, human resources and elected officials.

"It's the general fund that is the fund that we have the most flexibility for most of the visible things that we deal with, as opposed to flushing the toilet or drinking the water,GÇ¥ Thomas said.

There are currently two voter-approved sales tax revenue increases that have been implemented in Monroe; a one-tenth of a percent for the Monroe Police Department and two-tenths of a percent for street maintenance. Those revenues get filtered into designated areas of the general fund and are used for voter-approved expenses only.

Balancing a budget based on sales tax projections can be tricky, Thomas said. Sales tax revenues are dependent on fluctuations in the economy, as opposed to property tax revenues, which remain relatively flat. During the budgeting process, the finance department performs extensive analysis based on Monroe's 10-year financial history, in order to try and predict what will happen in the future.

Per state law, the Monroe City Council can vote to increase property taxes each year by 1 percent, which council consistently opts not to do.

"The downside to not doing the 1 percent and relying on the sales tax is that the sales tax is flashy ' it's inconsistent,GÇ¥ Thomas said. "Property tax is fairly linear; you know how much money you're going to be bringing in within a percent.GÇ¥

Thomas relies on the city's five-year forecast to analyze future trends and keep the city's finances in balance. His goal since taking office has been to sustain a reasonable five-year general fund forecast without "structural deficit,GÇ¥ meaning that projected revenues remain higher than projected expenditures.

This year's process involved back-and-forth between departments, as all sought ways to continue to provide the same level of services at minimal additional expense while taking into consideration rising personnel costs.-á

"I asked staff to go back and sharpen pencils as best they could,GÇ¥ Thomas said. "Changes in proposed expenditures for next year resulted in the balanced budget that we have today.GÇ¥

One of the changes was removal of the staff accountant position that was approved this year. During a December 2014 audit, the state recommended the city boost its level of internal control in the finance department. While Thomas acknowledges the city still needs to bolster the accounting department, it was determined the city could save $85,000 by going with a contract position rather than hiring a full-time staffer.

Overall, the city is estimating its revenues in 2016 at $11,766,949, and its expenditures at $11,766,342. A total of $155,456 has been estimated for one-time project expenditures in the preliminary budget, a number that will likely change as council seeks to shift things around.

One-time expenditures will include $15,000 to be set aside for downtown Monroe enhancement artwork and mini-grants, and a $25,000 allocation for professional consulting services associated with establishing a robust Downtown Monroe Association (DMA). Initially, council discussed adding lobbying services as a one-time expenditure, but it was eventually decided that it wanted lobbying to be a multi-year program rather than a one-time expense.-á

Thomas said he's excited to implement programs to help the downtown area. The mini-grants would be available to agencies like the DMA and the Monroe Chamber of Commerce, to help defer costs associated with shutting down streets during downtown festivals and other promotional efforts. This year the city dedicated resources to infrastructure improvements, and Thomas is looking forward to providing opportunities for local agencies interested in promoting the downtown.

"We do have a city that is growing,GÇ¥ Thomas said. "We're trying to do a lot to encourage people to move here and shop here.GÇ¥

In addition to the infrastructure improvements, the city has waived permit fees for downtown businesses and worked with incoming business owners on a case-by-case basis to facilitate new businesses in Monroe's downtown core.

Thomas said promoting Monroe as being "open for businessGÇ¥ was a key priority in the 2016 budget, and not just in the downtown area. The city looks forward to expanding on this year's growth, which has included a new Tractor Supply business currently being built near the intersection of U.S. 2 and Roosevelt Road. Other new businesses include the nearly-open Main Street Caf+¬, Dreadnought Brewing, the Route 2 Taproom and El Lago. Permit applications have also been submitted for a Carl's Jr. fast food restaurant. -á -á

The city's contingency fund will remain underfunded in 2016. Per a council resolution adopted in 2012, the contingency fund should contain 8 percent of the city's general fund operating budget, which would require an addition of approximately $481,685, which is not feasible based on current projections.

"The way the policy is written is, we are to put money into contingency as long as it doesn't adversely affect operations,GÇ¥ Thomas said.

Currently, the contingency fund balance is $438,458, which is in addition to the city's emergency reserve accounts.

"So that's a buffer on top of the emergency reserves,GÇ¥ Thomas said. "It's a good thing to have.GÇ¥

To review Thomas' 2016 preliminary budget, visit http://monroewa.gov/DocumentCenter/View/3414. Another budget hearings will take place Tuesda,y Nov. 17. The first reading of the 2016 budget ordinance will take place on Tuesday, Dec. 1.