The Hoquiam City Council approved a utility tax increase on Monday night at a special council session and ultimately passed a budget that had been met with reluctance by some council members in recent weeks.
The biennial 2015-16 budget is balanced, with $42,481,450 in expected spending and that much in expected revenue.
“Lot’s of hard work,” Mayor Jack Durney said when the budget passed.
An amendment to transfer $100,000 from the reserve fund for the police fund and ambulance fund for new police cars and a new ambulance was proposed by Councilman Darrin Moir and approved by the council. The reserve fund was at $811,000, a 45-day reserve. Councilman Greg Grun voted against the motion.
“We’re still not adding any more to the 4 percent utility tax (increase) or anything like that, and on top of that, we’re not physically cutting or taking from something else to supplement those funds,” Moir said.
All but Grun voted for the budget. Among his concerns are a lack of budget comparisons to neighboring cities and tax increases that Finance Director Mike Folkers has said are necessary.
The budget calls for a 1 percent property tax increase, along with a 4 percent utility tax increase on water, sewer and stormwater collection.
That is in addition to the 8 percent tax already applied to utilities, for a total utility tax of 12 percent. Of the additional tax, 3 percent will fund public safety, fire, police, drug task force and animal control, and 1 percent will balance the ambulance fund.
The utility tax also was approved on Monday with all but Grun voting in favor.
Last week, council members had expressed concern that they didn’t have all the information they needed to approve the budget and they stalled the adoption pending Monday’s workshop. Council members spent their week speaking with department heads and reviewing the budget for any possible changes.
Mayor Durney was out of town last week when the council balked at approving the budget and called for the workshop. Durney tacked on the special meeting after the workshop, saying “the time for talking is over.”
In addition to Moir’s amendment, Councilman Paul McMillan attempted to earmark $40,000 in the general capital fund for library roof repairs. His motion did not receive a second.
Grun had asked city administrators to consider shifting cemetery maintenance to a private company.
“I’d like to see it put up for bid in the future to try to save money,” Grun said.
He asked the city to negotiate with the union to make the shift.
City Administrator Brian Shay said the city is willing to negotiate anything with unions, but he didn’t think an agreement could be reached on bidding out maintenance.
“We did bring that up at our last session and, especially with all the positions we’re not filling, the union would like to see us preserve any of the jobs we have,” Shay said. “They’re adamantly opposed to contracting out.”
No motion was made.
Other business
• Monday was Moir’s last meeting as a council member. He and his wife are moving to Spokane for business purposes.
“I’ve thoroughly enjoyed my 10-plus years on the council,” Moir said.
He offered cautionary advice to the council.
“Moving forward, be frugal,” he said. “My fear for Grays Harbor and Hoquiam is that we won’t see significant revenue, so if you have the opportunity to spend some money or save some money, save it.”
He also said crude-by-rail projects should not be met with either complete opposition or entire acceptance. “Don’t be afraid of new things — don’t be afraid of the oil trains, but don’t let yourself be so enamored with a few jobs and some money that you don’t necessarily take a close look at it,” he said.
The city will advertise the open seat in the fifth ward (North Hoquiam). Only residents of the fifth ward are eligible.
“If you live across the street from it, you can’t run for it,” Durney said.
After two weeks of advertising, nominees will be invited to meet with the council and mayor.
Those interested in filling the position can contact Mayor Durney or any council member.
The position will be filled by Jan. 1, 2015.
• Any hospital or facility requesting an ambulance but then canceling the request after the fire department has called in off-duty personnel now will pay a cancellation fee representing the costs of two hours of overtime pay per person, following the approval of an ordinance.• Next Monday’s council meeting is canceled. The next meeting will be held on Monday, Dec. 8, at 7 p.m.
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