LA CENTER – La Center City Council members have unofficially decided to spend about $15,000 for a consultant to help them devise a five-year strategic plan for the community’s economy and other topics.
The suggestion from council member Joe Valenzuela gained support Nov. 18 during the council’s work session on the 2015 budget. The money for a consultant will come from the city’s general fund reserves, boosting to about $290,500 the amount to be taken from that fund to balance the budget next year.
Valenzuela said a plan is necessary in case another cardroom or two close in the future, severely cutting the city’s gambling tax revenue. It could serve as a guide to what kind of services citizens want and what kind of new businesses would be beneficial to attract, he said.
“I think we desperately need a plan,” Valenzuela said.
“I have no problem with a strategic plan,” added council member Al Luiz.
Council member Greg Thornton emphasized that the city can’t keep pulling money from its reserves indefinitely. He said it’s critical to come up with a way to balance revenue and expenses because “I don’t see what’s going to change going forward.”
Council member Randy Williams said the amount being pulled out of general fund reserves for 2015 represents salaries and benefits for three full-time city employees. He noted the city has 33 full-time workers now.
“To go to 30 would directly affect services,” Williams said.
Mayor Jim Irish noted that revenues anticipated for 2015 have been projected conservatively in the proposed budget.
“What I’m asking for in 2015 is a stabilization budget so we can start moving forward in 2016,” he said.
Irish said instituting a utility tax in 2016 or 2017 might be something for the council to consider.
“It would affect everybody equally,” he said. “We’re the only city in Clark County without a utility tax.”
Council members also decided last week to proceed with two other relatively low-cost capital projects in 2015 that hadn’t been added to the budget previously. Funding for the additions will come from the capital projects fund.
One is a pedestrian crossing with LED light for about $35,000 at the corner Stonecreek and Fourth Street near the elementary school. The other is a bench and LED light for a trail near Timmen Road for $6,000.
During last week’s budget session, council members discussed a full-time police officer position that is open. Luiz wondered aloud whether it’s necessary to fill the job, given the budget situation. Council member Liz Cerveny said that without the position the department might rack up a lot of overtime. No decision was made.
La Center’s budget consultant Paul Lewis explained that 65.5 percent of the city’s revenue is projected to come from card room gambling taxes next year – a total of $2,550,000. Property taxes will provide the next highest amount of revenue, about $404,000 or 10.4 percent of all city revenue.
As for where La Center property tax revenue is distributed, Lewis said La Center School District gets 40.5 percent of the total amount while state schools get 18.5 percent. Clark County Fire & Rescue receives 13.1 percent of the city’s property taxes, Clark County gets 12 percent and the city receives 11.6 percent.
