By Shawn White Winslow City Council recently held a special work session to address the intricate details of the city’s budget for fiscal year 2025. Opting for an off-week meeting, the council aimed to ensure a thorough discussion without the usual time constraints experienced during regular council sessions. This approach was deemed necessary given the complex financial issues facing the city. City Manager David Coolidge described the forthcoming budget as “tough,” pointing to the city’s challenging financial position. Despite grappling with a deficit exceeding $1 million as of the end of February, an increase in the collection of taxes during tourist season is set to stabilize the city’s finances by the fiscal year-end in June. This rebound is critical as the city prepares for the upcoming budgetary challenges. A significant concern for the upcoming budget is a new state tax collection mechanism that has reduced the funds trickling down to cities. Winslow anticipates a sharp decrease in urban revenue sharing, expecting almost $500,000 less than the previous year, impacting the city’s financial flexibility. Although most revenue streams are projected to remain stable with modest increases due to inflation, the city is optimistic about a 5% increase in sales tax revenue attributed to burgeoning business activities within the community. In response to budgetary constraints, included in the new budget is a series of new and increased fees. These changes aim to increase city revenues amid fiscal challenges. A new fee is being introduced for both electronic and paper public records requests, with an hourly rate of $25 for staff time exceeding two hours, and a $30 charge for a 64 GB flash drive. Additionally, the construction sector will face higher penalties for building without a permit, with fines increasing to three times the permit fee for a second offense and five times for subsequent offenses. There’s also a new $80 permit fee for residential re-roofing and block fence permits. The city is also adjusting fees within recreational services. Swim team participation fees will increase from $30 to $40 per month during the September-May season and from $40 to $50 per month during the June-August season. The youth basketball league fees will rise from $55 to $65 per participant, and family rates from $155 to $165. Furthermore, rental rates for municipal swimming pool parties will see an increase from $60 to $80 per hour. The Girl Scout House rental will now have a flat rate of $100, removing hourly reservation fees. Infrastructure maintenance will introduce new fees, such as $11 per square foot for sidewalk repairs and $50 per linear foot for curb and gutter repairs associated with new water connections. Moreover, a new licensing fee, equating to 5% of gross annual revenues, will be charged to businesses involved in solid waste, recycling collection, or transportation within Winslow. There will be increased charges for digital fax services at the local library, rising from 15 cents to $1, alongside penalties for lost or damaged items which will now reflect actual replacement costs. The police department will introduce a new fee structure for records requests that require more than two hours of staff time similar to the other city fee and will charge $360 for three officers to manage funeral processions, with an additional $60 for each hour beyond two hours. New fees for home occupation reviews and permits are set, as well as a $25 fee for microchipping dogs at the animal care facility. These comprehensive adjustments are designed to help offset the fiscal pressures facing Winslow, ensuring that essential services can continue without significant disruptions. The council is slated to vote on these fee changes during their regular meeting on June 11. The budget also assumes a restructuring of trash collection fees with a proposed increase to the tune of 10-15%. When Coolidge told the council and staff about this increase the groans from the room confirm that no one wants to put the taxpayers in this position but hard decisions must be made when in this financial situation. The city is also contemplating the discontinuation of its recycling program, which remains operational in only a few Arizona communities. City Manager Coolidge noted that alternatives are being explored to potentially offset costs and maintain recycling services, with detailed plans to be presented in future council discussions. Analyzing departmental budgets reveals a mixed landscape. The budgets for the Mayor, Council, and Justice Court show negligible changes. In contrast, the City Manager’s budget will reduce by approximately $200,000 due to a reallocation of funds previously designated for professional services. The City Clerk’s office anticipates a reduction of $70,000, largely because plans to hire an assistant city clerk have been postponed in light of the budget constraints. Similarly, the finance department expects a $115,000 cutback, primarily due to holding off on filling a vacancy and reducing operational costs. Personnel costs are also slated for reductions across various non-departmental areas, contributing to a decrease in the general government budget from $3.5 million in fiscal year 2024 to $2.6 million. However, public safety departments such as police and fire will see the least reduction in funding. The police budget is set to decrease slightly from $5.3 million to $5.2 million, with a small dip in personnel expenses, despite an overall increase of nearly $1 million since 2022. The fire department budget will be cut by approximately $80,000, primarily in personnel costs, although recruitment will continue to fill essential roles in these departments. Other sectors like parks, recreation and public property will experience only marginal budget adjustments. Economic development, on the other hand, is set for a significant boost of about $170,000, earmarked for marketing initiatives aimed at promoting the city and fostering economic growth, which in turn is expected to generate increased tax revenues. With total expenditures slated to decrease from about $12 million in 2024 to around $11.1 million in 2025, Winslow City Council faces the challenging task of balancing fiscal austerity with the necessity to maintain and enhance municipal services and economic vitality. Only one resident, Judy Howell, spoke to the council about what she wanted from this new budget. Howell, who is running for city council this November, has been very vocal at regular meetings about the need for better facilities at the animal shelter and was disappointed to see it did not make this version of the city’s budget for next year. A city’s budget can be very complex and involve many moving parts coming together at once. Coolidge acknowledges that they had to design this budget very conservatively because of this new urban revenue sharing model and the fact that it’s an election year which can introduce some unanticipated costs.
