Council members raise budget concerns
Miller asks adoption be postponed, Shelton requests 2nd Ave. upgrades
With the final budget, capital improvement projects and the property tax rate up for possible adoption Wednesday night, members of the Yuma City Council raised some of the concerns they still have during a Tuesday work session.
Councilman Jacob Miller wants more time before adopting the budget so he can further comb through the numbers and better understand them, while Councilman Mike Shelton made a lastminute push to include street improvements to 2nd Avenue, after pleas from residents, to the Capital Improvement Program.
On Wednesday, the council will hold public hearings on the CIP for fiscal years 2019 to 2023 and the proposed budget for fiscal year 2018-19. The $220.2 million budget includes a CIP budget of $40.6 million and an operating budget of $176.3 million.
The council will also be introduced to an ordinance setting the 2018-2019 Primary Property Tax Rate at $2.2747 for each $100 of assessed valuation and the Mall Maintenance District Property Tax Rate at $4.6718 on each $100 of assessed valuation.
The primary property tax is anticipated to raise $12.6 million in tax revenue, based on assessed
valuations provided by the Yuma County Assessor. The rate decreased from the 2017-2018 rate of $2.3001.
The Mall Maintenance District tax rate is higher than the 2017-2018 tax rate of $4.4889. It is anticipated to raise about $106,825 in tax revenues, slightly higher than current year’s levy of $105,000.
Shelton asked about the possibility of taking off one of the projects and adding the 2nd Avenue improvements. He said that staff could use their discretion in deciding which project can be postponed. He noted that the residents of the area, which was annexed by the city in 2007, have been asking for improvements for 20 years.
However, both Deputy Mayor Gary Knight and Councilman Edward Thomas pointed out that the council had already discussed the topic and directed staff to look into grants to pay for the improvements.
Thomas noted that annexed neighborhoods typically form improvement districts to pay for such improvements and expressed concerns with setting a precedent against that established practice.
Shelton said he felt that paying for improvements through an improvement district would be not be financially feasible for most residents. He also noted that there’s no way to know when and if a grant would be available. Knight pointed out that putting project in the CIP does make it a certainty. Shelton responded that at least it’s in writing and a step forward.
Councilwoman Leslie McClendon noted that changing the CIP at this point would be “rushing” it. She also pointed out that the city doesn’t yet know the cost of improvements to 2nd Avenue. She suggested once the council members has concrete numbers, they can further address the issue.
“You may say we are slamming this, I say we need to catch up,” Shelton replied, adding, “I think the city has been negligent by not fixing that area and this is our opportunity to make up for that and address the problem.”
City Administrator Greg Wilkinson explained that residents of streets surrounding 2nd Avenue formed districts and paid for improvements. Having the city pay for these improvements would be a “departure” from how things are done and the city would risk having those other residents come back and ask for their money back.
Wilkinson added that the city will try to get grants, but it could take several years.
As for the final budget, Miller commented on several aspects, including praising the successful efforts of the new manager of the Desert Hills Golf Course to reduce costs. He noted that overall city revenues are up but expressed concern that expenses will also continue to increase. He noted that projections call for another downturn in the economy and the city “could get in a bad place.”
Miller suggested “rolling back” some funds to last year’s figures so more money could go to public safety. In particular he wants body cameras for the police department “to protect our officers and our citizens.” Police Chief John Lekan explained that the police department had applied for a grant to cover the cost of 70 to 77 body cameras.
Miller also requested that the council postpone adoption of the budget. “I’ve poured my heart into this because I really want to understand the budget. That is our obligation as a council,” Miller said, adding that it’s hard to under the budget in a matter of six weeks.
Chief Financial Officer Pat Wicks explained the property tax rate, noting that a Truth in Taxation hearing is not needed because the rate is not increasing. Rather, he said, “the tax rate is going down because the (assessed) valuation is going up.”
The regular meeting will start at 5:30 p.m. Wednesday in the City Hall Council Chambers, 1 City Plaza. View the complete agenda and staff reports at www. yumaaz.gov.