Bishop City Council adopts budget aimed at needed infrastructure projects

Budget includes two additional positions, cost-of-living adjustments

The Bishop City Council at its meeting Monday adopted a proposed Fiscal Year 2022-2023 Budget that emphasizes getting shovel-ready plans in place for infrastructure improvement grants as well as making sidewalk improvements and repairs throughout the city.

The council held a budget workshop prior to its regular meeting to discuss budget highlights.

The effective period of a budget for the city is one fiscal year, which runs from July 1 to June 30.

Bishop City Council member Stephen Muchovej said he wanted to commend city staff on developing “a sound budget” that “focuses our priorities on investing in the future of the city and on a lot of actions that the public has been asking for.”

He said with the budget the city will be focusing a lot on sidewalk improvements and projects around town.

Muchovej said by the city investing in planning and getting several projects “shovel ready,” meaning relevant plans, designs and studies already have been developed and conducted, it is “setting the foundation for the future.”

Bishop City Administrator Deston Dishion said that the city finance team, including city department heads, strove to “create a budget that was responsible, sensible sound and sustainable for the future.”

He said much of the credit was due to Jennifer Rodricks, the city’s assistant finance director, who worked diligently with department heads to come up with a responsible, reasonable budget.

Dishion said the city’s biggest asset is its employees and that is reflected in a modest cost-of-living allowance increase.

He said as the city continues to provide more services to its residents, it requires more staff. The city is hiring two new positions within the coming budget.

The city’s total labor cost, according to the budget, is $6,165,188, which includes salaries and benefits.

Dishion said “unfunded liabilities” also are having a significant impact on the city’s budget.

Dishion said being the city’s Public Works director for the last 27 years, he’s had some experience with budgets. However, Dishion said that looking at the budget for the first time as the city’s administrator has opened his eyes to the city’s revenue stream.

“User fees help but we really need to continue to

figure out how to fill our empty stores downtown and bring back those tax revenues that come with those stores,” Dishion said.

The budget by the numbers

In the budget, Dishion explained that COVID-19 still is impacting the city’s budget and the city council has to keep that in mind as they plan ahead.

The FY 22-23

Operating Budget is based on an estimated $13,756,239 in total revenue.

Most of the budget development process focuses on the General Fund, which totals $10,761,529 in estimated revenues.

The city’s general fund provides funds for much of the city’s operations, including city administration, public works, planning, parks and rec, the police and fire departments.

The city council commended Fire Chief Joe

Dell who nearly doubled his department revenue since his arrival in 2019 through a variety of grants for equipment as well as reimbursements for wildfire deployments.

Revenues from the city’s Transient

Occupancy Tax (TOT), or hotel tax, which is collected from those who stay at hotels within Bishop’s city limits, account for around 24% of General Fund revenues.

The FY 22-23 budget estimates $2.6 million in TOT revenues, which is included in the city’s Operating Budget based on a 5-year average.

The budget notes that at the time that the budget was being developed, TOT revenue was at $2.3 million without payments for the fourth quarter being processed and received.

Dishion stated that the budget introduces two new positions one to Community Services and the second position in the city’s Planning Department.

He stated that also new to the upcoming year’s budget is the addition of the PARS Trust, which was created to ensure that the city can responsibly plan for unfunded pension liabilities.

Funding has been added to each Department to account for current employees and retirees.

General Fund Reserve Balance

Dishion stated that the city also this fiscal year is introducing a minimum General Fund Reserve balance which will be set at 25% of the city’s operation and maintenance budget each year.

“These two new policies are just another sign of the city’s commitment to financial security,” Dishion stated.

The complete budget can be found at the city’s website at www.cityofbishop.com.