City facing smaller budget shortfall

By Brent Shrum, Western News Reporter

The city of Libby is looking at a $549,000 shortfall following the submission of preliminary budget proposals from the various city departments.

With about a month left to trim the spending plan for the 2004-2005 fiscal year, the city council has less work cut out for it than last year at this time, when about $1 million needed to be cut to balance the budget. Department heads appeared to have been more conservative when submitting their proposals, Mayor Tony Berget said.

³They were a little more realistic this year,² he said.

The deficits are in the general fund, with anticipated revenues of $924,748 and proposed expenditures of $1,042,265; the water utility fund, with revenues of $859,500 and expenditures of $1,105,850; and in the sewer utility fund, with revenues of $298,600 and expenditures of $483,820.

Included in the proposed budget is the elimination of one police officer position, trimming the department from six officers to five. The sixth position was a school resource officer funded by a grant for three years and by a joint effort by the city, county and school district for two more years. The school resource officer will be dropped this year, Berget said.

³We knew we wouldn¹t be able to handle that sixth officer,² he said.

The city plans to continue its program of replacing aging water mains this year and begin paying back a $1 million loan from the fund overseen by the Libby Area Development Co., Berget said. The city borrowed the $1 million two years ago to pay off water and sewer bonds and allow the Johnson Acres project and the water main replacement program to move ahead. The Johnson Acres project was planned for last year but has been delayed due to numerous complications; bids are scheduled to be opened this week. The city is hoping to make the first $150,000 payment on the loan this year, one year behind schedule, Berget said.

A cost-of-living increase of around 2 percent is being considered for water and sewer rates. An incremental increase would hold off a bigger increase later, Berget said.

³When we don¹t do that and let it go, then it amounts to a big percentage,² he said.

The city also plans to continue its program of replacing sidewalks and rebuilding sections of streets and is looking to add some curb replacement projects this year, Berget said.

³It¹s just a little bit at a time,² he said.

Another project being planned for this year is completing the installation of old-style streetlights along Lincoln Boulevard in front of the Memorial Center, Berget said.

The city is anticipating around a 2-percent increase in revenues this year but won¹t have official figures from the state until September or October, Berget said. The final budget must be adopted in August.