With the presidential debate raging on televisions around the world, the Ione City Council had a sparsely attended meeting Tuesday night, highlighted by a financial report and a four-page list of accomplishments for the year.

As much of the focus at the McCain-Obama verbal battle focused on generally dismal economic news, Ione finance director Mark Smith was able to paint a rosy picture of the city's financial situation. Revenues are up, while expenditures are down.

Prior to the beginning of the fiscal year, the approved budget estimated both revenues and expenditures. The end of the fourth quarter brings figures that can be called "actual," reflective of what seems to have actually happened during the year. Barring some hidden error, the figures presented on Tuesday night will become final. The staff report, however, includes a disclaimer: "The fiscal year 2007-08 audit is not yet complete and results may vary from this report."

Actual property taxes are 3 percent more than budget. That's the good news on the housing front. With construction nationwide at a virtual standstill, construction development impact fees are 81 percent less than budget. Plan check fees, which had soared to nearly $200,000 two years ago, came in at barely more than $5,000 for the year. Total general fund revenues are 5 percent ahead of budget and total expenditures are 8 percent below budget.

The city still has three major multi-year projects in the works: a $1,450,000 fire station project; $782,000 for a general plan study; and $352,000 for wastewater treatment plant environmental studies. The fire station is to be paid for largely by loans, with payments of $6,660 per month for 30 years, with part of the financing coming from the new police department building fund. "Given the delicate nature of the proposed financing," the staff report warns, "there is very little room for cost overruns." The lack of impact fees has put plans for a new police department building on hold.

"I'd like to thank (City Manager) Kim (Kerr) and Mark," said Councilman Lee Ard, "for the excellent job of managing the city's finances in these difficult times."

The list of accomplishments for the year begins with slurry seal on numerous streets and ends with the redevelopment financial transaction report. In between, the city accomplished tasks such as hiring new key personnel and completing development agreements.

Michael Johnson was hired as the police chief, highly recommended by Kerr, who had worked in Humboldt County around the same time Johnson had been a sergeant, shift/watch commander and K-9 supervisor with the city of Eureka. The city also hired Smith as the new finance director and Kristen Castanos as city attorney.

The Ione Police Department won first place in the sixth annual California Law Enforcement Challenge Awards, which showcase the best and most innovative programs produced by traffic safety organizations throughout the state.

The city counted among its accomplishments the development agreement with Ryland Homes and JTS Communities, which resulted in the installation of a 2 million-gallon water tank and water infrastructure to go with it. Ryland subsequently announced its intention to cease operations in northern California.

Kerr gave a PowerPoint presentation to the council on revenue sharing, one she had previously shown to the members of the Amador County Regional Planning Committee. Kerr's major thrust was that many government entities have found ways to share revenues between and among cities and counties, to the betterment of all. Examples came from Monterey County and Sacramento City and County, as well as the New England Public Policy Center at the Federal Reserve Bank of Boston.

"There's a need for economic development in the county," Kerr said. Proposition 11, passed in 1998, Kerr pointed out, allows jurisdictions to share revenues upon approval of the jurisdictions, rather than approval of the voters.

In the city manager's report, Kerr spoke enthusiastically about a company named Pacific Environmental Resources Corp., PERC for short, which builds wastewater treatment plants that are highly efficient and virtually invisible. Kerr recommended that the council agree to set up a time and date for a presentation by PERC of the services they could provide to the city. Ione is presently in the planning stages of creating a new tertiary wastewater treatment plant.