Holbrook faces big shortfall due to economic downturn

He explained that there was also a significant loss in Lodgers Tax revenues. “Last year we came in at $160,000 and this year it’s coming in at $110,000,” he said.

Expenditures noted by Sullivan included an increase in insurance costs that was not passed on to the employees and a state retirement increase that will require the city to pay eight percent more than this fiscal year. As an example, Sullivan said that a lateral officer hired for the police department may come in at a salary of $42,000, but with all of the employee related expenses, the cost would total nearly $100,000.

“Currently, Chief Jackson has three positions open. He absolutely needs to fill two of those. We’re also looking at not filling the part-time position at the library and we may have to eliminate a position at the golf course,” he said.

Rather than wait for a work session, Vice Mayor Wade Carlisle wanted an immediate breakdown of the cuts that would be necessary to cover the $450,000 shortfall.

Sullivan went through an approximate list of reductions that included $100,000 for a police salary, $44,000 in fuel purchases, $40,000 from parks and recreation since the work was completed at Lisitsky Park this year, $36,000 in an employee reduction when a contract expires this year, $25,000 for vehicle and equipment parts from the golf course, $21,000 from a part-time library position, $20,000 from the fire department since less funds will be needed for equipment purchases, $6,000 reduced from council travel and elections, $2,500 from fleet maintenance; $1,500 from animal control due to the completion of construction projects, and $500 from facilities and levy.

The remainder was compensated by moving $103,000 into the general fund from Highway User Revenue Funds for street workers’ salaries, and additional revenues resulting from $20,000 in increased court fines and $23,000 in savings from employees who are no longer employed by the city and have retained the insurance, but the city no longer has to pay a portion of it. Sullivan reiterated that the amounts are projections, not hard and fast numbers.

After reviewing the figures Carlisle stated, “The reality is that we need to increase revenues either with taxes or fees, or we need to cut employees. In the past we’ve discussed eliminating the police department. Businesses are going out of business and we have to look hard at that. I like Chief Jackson, but maybe we should go to DPS (Department of Public Safety) and tell them to give us a sergeant if it comes down to it,” said Carlisle, who also suggested cutting staff pay.

Since the budget was presented only for review, the discussion then moved on to determine if the council should move forward with a May election asking the voters to approve a property tax.

Sullivan initially said he was undecided about the election, seeing the value of increasing revenues to perhaps spare a couple of jobs, but also wanting to avoid assessing the citizens a tax.

Carlisle disagreed, “The point of raising money is not to provide jobs. If it’s just to hire a person I’m 100 percent against it. But if there’s a reason, is there a service, is there something that we provide that’s going to suffer in the next couple of years, that’s why we’re raising these taxes,” said Carlisle.

Sullivan then said he recommended against a property tax measure, stating that he felt he could make it work through the budget.

After some discussion a motion was made to hold a May election in order to have the property tax question placed on the ballot requesting a total of $100,000, with the figures to be worked out as to the rate per $100 valuation.

Then a question of wording was brought up by Carlisle since the measure as presented to the council stated that the funds raised through property tax collection were to be used for emergency medical services, the police department and fire department, and he felt it should include more departments. He also said he would like to amend the amount and make it $200,000, saying, “If you want to live here then you have to pay for services, unless you want to pay a fee when you come through Holbrook.”

A call was placed to the city attorney to determine if the measure could be modified. The council was told that it could, but that the language had to be very specific so that voters would know exactly where those funds would go.

Carlisle began listing each department in the city to add to the measure, but was curtailed when told that by doing so it was indicating that the funds would in fact have to be used for each of those departments equally.

Councilwoman Francie Payne said those funds could be designated for public safety as listed and if necessary other departments lacking funds could be funded by the general fund.

Peterson expressed concern that by increasing the amount from $100,000 to $200,000 they were also increasing the likelihood that the measure would be voted down.

The council agreed to modify the measure to remove funding for emergency medical services, as that service is provided by a private entity, and to leave the amount at $100,000.

The information regarding the ballot measure will now be sent out to Holbrook residents for consideration prior to the May election. The election will only be for that one item, as the council election was determined in the primary election.

The board also approved an official canvass of that election, which showed a total of 584 ballots were cast. Earl Kester Sr. received 343 votes; Richard Peterson, 303; Wade Carlisle, 298; Armando Aguilera Sr., 239; Louis Baldonado Jr., 178; Frank Lucero, 169; and Paul Garcia, 91.

The council will hold a budget session on Tuesday, April 11, following the regular city council meeting, which begins at 6 p.m. The discussion will include the delegation of the Lodgers’ Tax fund.