The city of La Center’s recently-approved 2020 budget sees a more than 5 percent increase in its general fund expenses, though efforts to pare down department budgets this year have helped to keep expenditures from going up too much next year.
The La Center City Council approved the 2020 budget during its Dec. 11 meeting. 2020’s general fund budget was set for about $3.95 million, up from last year’s $3.75 million
Outside of general fund expenses, La Center Finance Director Dustin Bailey pointed out a few projects using capital projects funds next year, including $580,000 for restoration of Stonecreek Drive, $250,000 for work on a “planned action area” for downtown La Center and the Timmen Road area to aid with development, and $300,000 for relocation of city services into the former TDS building, which the city purchased in 2018.
Bailey said the city is hoping to move in to the TDS building in February or March, explaining that the money budgeted would be used for deferred maintenance on the building to get it up to standards.
The largest capital project won’t need a reliance on local funding, as this year the state Legislature approved $1.5 million for widening of Fourth Street and the replacement of a culvert over Breeze Creek that has proven an impasse for salmon populations.
Those projects and others would lead to a dip into capital projects fund balance by about $1.1 million, leaving an estimated fund balance of more than $3.8 million by year’s end, according to budget documents.
Regarding taxpayer impacts, the La Center City Council voted to take the 1 percent statutory increase to its general fund property tax levy, which would see a close to $4,700 increase in revenue. Even with the increase, the levy rate was estimated to drop, going to $1.054 per $1,000 of assessed value compared to 2019’s $1.065.
Bailey also noted a 2.1 percent increase in assessed values, which like other nearby cities was less than had been the case in past years. Given shifts in levy rate and appreciation, homeowners would see a $3.45 increase on annual property taxes on a home valued at $310,000 for taxes paid this year from the city levy.
Part of the levy rate drop was due to new construction in the city. Bailey said La Center was in a bit of a housing boom with new single-family home construction estimated to be more than 100 by year’s end, more than the past three years combined and surpassing estimations made last year. The city isn’t expecting a slowdown in 2020 with the budget anticipating 180 new homes next year.
Gambling tax revenue from card rooms in La Center remains a large part of general fund revenues, with the same $1.3 million from 2019 budgeted in 2020. Bailey said that following a precipitous drop in tax revenues with the opening of ilani nearby, there now seems to be stability, noting that in order to help out the industry the city had adopted a sliding tax scale to keep the two existing card rooms in business.
“Our card room tax revenue is still about half of what it was three years ago,” Bailey remarked. To help realize some savings this year, the city had undertaken a zero-based budgeting structure as opposed to a baseline approach, which Bailey said received positive feedback from the council.
“It’s a more time-consuming process, but really what you are able to do is take a hard look at each and every expenditure, figure out which ones you can still operate the city and meet those (service) expectations without,” Bailey said.
He estimated that savings ranged from $20,000 to $150,000 per department.
“We’re going to continue city services with the same service levels that (citizens) have come to know,” Bailey said.
