The city of Ione discussed budget issues on Tuesday, with the focus on maintaining public safety at current levels while continuing improvements to city streets and sewer capabilities.
Despite an increase in building permits from last fiscal year and the 1-percent change the city implemented earlier in the year, no major changes were reported regarding the local economic picture. According to City Manager Kim Kerr, there is no projected population reduction planned for Mule Creek State Prison, even though prison officials have reported a possible reduction of inmates by 400 by the end of the year.
This year's budget shows the first increase in the city's revenues since 2005-06, with a total, excluding transfers in, estimated by city staff at $4,830,075, a 17 percent increase over last year. Also, the city was able to pay off the note for Howard Park a year ahead of schedule, just as the city prepares to accept an estimated debt that will be incurred this year is the new fire station.
"It will be a $250,000 debt for the new fire station and the general plan study," said Kerr.
The fire station is expected to run the city $1.45 million and will be paid by the fire station capital fund of $207,000, leaving a balance of $1.243 million. The remaining balance is expected to be covered by several loans from the general facilities capital fund and the police facilities general fund, with a 35-year term and interest quarterly.
"The payments will be applied to the general fund first, then the remaining loans," said Kerr. "There are no pre-payment penalties on that and the quarterly payment should be approximately $18,621."
The city council is expected to add another $5,000 to the budget for the Ione Business Community Association, $1,000 for the Amador Council of Tourism, as well as $25,000 in contingencies.
Council members directed staff to amend the budget and bring it back for discussion for the July 1 council meeting. A public hearing on the final budget is tentatively set for July 9, when the council is expected to make its final decision.
| Kelly Scott |