Ridgefield City Council has approved the city’s 2022 budget with significant investments in infrastructure, both in roads and in personnel to keep the city running.
During its Dec. 2 meeting, the council approved the roughly $63 million budget. In 2022, the city will dip into its reserves by about $3 million across all funds, though city finance director Kirk Johnson said Ridgefield has enough cash on hand to still maintain healthy balances.
Capital service funds would be drawn down by about $2.9 million, mostly from impact fees developers pay on new construction. Johnson said the budget has significant investment for infrastructure projects in 2022, which includes a number of roundabouts at Royle Road and South 15th Street, on Pioneer Street east of Rosauers in a project that will also widen part of the street, and one at the east end of Pioneer Street which will connect the street with Union Ridge Parkway to the south. He mentioned the easternmost project received a $5.8 million federal grant.
Apart from road projects, Johnson said work on a regional stormwater facility at the Interstate 5 junction is also included in next year’s budget.
Johnson said $1.1 million in American Rescue Plan Act money is still in the city’s general fund which will be used for one-time expenses. He added an additional roughly $1.3 million in pandemic-related funding is included for 2022, which he said will go into the infrastructure improvements.
Though Ridgefield plans to draw down millions in fund balances in 2022, Johnson pointed out that the city’s fund reserves are above standards for municipalities.
Though council approved an increase of the property tax levy by 1%, the levy rate is projected to actually drop from about 79 cents per $1,000 of assessed value to about 73 cents per $1,000. This is because of the amount of new construction which remains the major contributor for increases in the city’s property tax revenues in 2022. Johnson said building in 2021 accounted for more than $300 million that was added to the city’s assessed value.
“In addition to the strategic investment in capital (infrastructure), council is investing in human infrastructure as well,” Johnson said.
The 2022 budget includes funding for nine additional city employees.
Some of the additional staff positions was driven by surveys of residents, which identified a desire for more recreational opportunities in the city. To meet that end, Johnson said the budget has funds to hire a parks and recreation manager.
Public safety also ranked high among residents’ priorities, with next year’s budget containing funds for two additional police officers, Johnson said. The other positions are spread across the city’s departments to meet needs.
Even with about 69 full-time equivalent positions, the highest the city’s ever had, the city’s staffing per 1,000 population remains the same as it was in 2021 and lower than in prior years.
Johnson said the addition of city staff begins on essentially a temporary basis for a few years to prove to the council that the positions are needed. If proven, then the council can OK the positions to continue.
“That’s kind of our steps in adding staff. First we look at efficiencies. We look to make sure that we’re meeting the needs and then what do we need to continue with offering core services. Then we go and ask for a position,” Johnson said. “We try to do the best we can and give council all the information and then that way we can show them over time that the need’s still there.”
For the 2022 budget, it will be the second year in a row the city will not increase water rates. Stormwater rates will increase by 3% due to new requirements after Ridgefield broke a 10,000 population in 2021, Johnson said. Sewer rates are handled by Clark Regional Wastewater District, which he said he was told were going down about 2%.
Looking past 2022, Johnson said six-year financial projections are looking good for Ridgefield. The major change identified includes shifting the city’s dependence on new development for revenues toward more of a focus on retail sales.
Johnson said now the city relies on new development for less than 40% of its sales tax revenue, when a few years ago it accounted for almost 60%. He said the state average is around 20%, though looking at statistics Ridgefield could have sustainable revenues with about 30% coming from new development.
Johnson said that eye on the future for the city is evident in the coming year’s budget as it builds out infrastructure to support the fast-growing city.
“It’s a balanced budget. Our rates are going down if you look at the average cost per household. Our strategic investments are helping with the growth, and we’re looking forward, trying to be proactive rather than being reactive,” Johnson said.
