2021 budgets win first reading OK in Valparaiso

Next vote on school, municipal plans expected Sept. 28

With the COVID-19 pandemic leaving more questions than answers as municipalities grapple with their budgets for the coming year, the Valparaiso City Council got a first look Monday at the city budget and that for the Valparaiso Community Schools.

Officials agreed that, despite the pandemic, the city’s finances remain strong, in part because of a slowdown on spending this year and solid financial reserves.

“We’re in a terrific position,” said City Administrator Mike Jessen. He said the city still has to be cautious for the coming few years because of “a significant amount of uncertainty.”

School officials said the full measure of the pandemic’s impact on the budget there won’t be known until student attendance counts, held in February and September next year.

Overall city expenditures increased by about 3%, and the tax rate is being advertised at $1.67 per $100 assessed valuation, said Clerk-Treasurer Holly Taylor. The tax rate for this year was $1.63.

In a year-to-year spending comparison through June 2019 and June 2020, the city’s overall spending dropped by more than $2.1 million. Additionally, Taylor said, the city is expected to have a cash balance of just over $14 million between all of its funds at the end of the year.

In all, city spending is expected to increase just over $1 million between this year and next year, Taylor said.

Taylor said about $744,000 of that is because four funds have been added into the budget process.

The city is anticipating a 6.1% increase in health insurance premiums, at about $260,000.

“We will not be forwarding that cost on to employees,” Taylor said. He said the city will absorb the difference.

Taylor said the city’s salary ordinance hasn’t changed much but for a few corrections, per a wage study meant to guide the city as it set salaries

As far as the schools, CFO Sharon Qualkenbush said the advertised budget for the coming year is about $1.3 million higher than this year’s advertised budget was. This year’s advertised budget is $79,424,523.

The property tax rate as advertised is $1.45 per $100 assessed valuation, which is one cent less than the advertised rate for 2020. The actual rate for this year, she said, was $1.25, because budgets are typically advertised high.

Council President George Douglas, R-at large, asked about the impact of the pandemic on the schools for the coming year.

“In many ways we don’t know because this is based on our student count in February 2021 and a year from now,” Qualkenbush said.

Both budgets, as well as the city’s salary ordinance, received unanimous approval on first reading after public hearings that had no takers during the meeting, which was broadcast live online from City Hall. The council is expected to approve all of the measures at its Sept. 28 meeting.