71°F
weather icon Clear

City gets first look at 2017 budget

The City Council on Wednesday held its first workshop of the year to discuss a proposed budget for fiscal year 2017, which forecasts increased revenues in the general and utility funds and about $3 million in capital spending on projects, vehicles and equipment upgrades.

The budget is both an operational and a capital budget, Finance Director Shirley Hughes wrote in a staff report, which means it covers the city’s day-to-day operating costs like salaries, supplies and repairs, as well as equipment and vehicle purchases that can cost $50,000-$100,000.

Hughes anticipated the biggest topic at the meeting would be looming rate hikes to cover the utility fund deficit.

“The utility fund is having difficulty paying for its costs,” she said in a phone interview Tuesday.

The city’s general fund took out a loan to build the Boulder Creek Golf Club and was able to pay it back this year, Hughes said. Although $1.6 million from the “interfund loan” payoff has covered the utility fund’s deficit for fiscal year 2016 and the balance of the loan will cover the deficit for 2017, the fact remains that the utility fund is not making enough money to cover its own costs, Hughes said.

That is, in part, “because we have not raised rates in a while,” she said. Because the city’s utility fund is an enterprise fund, it needs to be self-sustaining.

A recent study sponsored by the Public Works Department found that the city would need to raise customers’ rates in order for its water, sewer and electric operations to pay for themselves.

“That’s going to be the biggest issue this budget season,” Hughes said. If the fund can’t pay for itself, its expenses will have to be folded into the general fund, which would add a huge deficit to that fund.

State law dictates the city’s tentative budget be submitted to the Department of Taxation by April 15. The final budget needs to be approved by May 31.

Contact Kimber Laux at klaux@bouldercityreview.com or 702-586-9401. Find her on Twitter: @lauxkimber

MOST READ
LISTEN TO THE TOP FIVE HERE
THE LATEST
Local aid groups get fed grant funding

The city has approved disbursement of almost $255,000 in federally-supplied community development block grant (CDBG) funds to three local entities: the Senior Center, Emergency Aid and Lend A Hand.

Planning commission approves Tract 350 variance request

Toll Brothers bettered their record in front of the planning commission to 2-1 last month when the developer got approval for a variance request related to the width of lots in Tract 350.

BC Electric’s Medo makes accusations about e-bike/scooter law

While the great majority of public comment surrounding the issues of unsafe usage — often by juveniles — of e-bikes and electric scooters was firmly on the side of the city “doing something,” not everyone is onboard.

So where does that RDA money come from?

It wasn’t all about donuts or whether super bright pink is an appropriate color for a building in the historic district. In addition to donuts it was about, well, dollars.

Really better buy that helmet

With a couple of significant amendments, the city council voted unanimously to pass an ordinance regulating the use of e-bikes and e-scooters in Boulder City. The ordinance passed unanimously Tuesday and will take effect on Sept. 18.

Nevada Way to go Pink … and pay for the privilege

The main topic of discussion was color. As in color of a building when the board of the Boulder City Redevelopment Agency (aka the city council) met two weeks ago.

City to nix admin services dept. in favor of deputy city manager

In a move that is really little more than “cleanup” (i.e., bringing official city code into sync with decisions made by the city council more than a year ago), the council voted to approve changes to city code related to the created-but-not-yet-filled position of deputy city manager.

Better buy a helmet …

It was just the opening salvo, but it appears that lost patience with riders of e-bikes and scooters are to the point that they are ready to go well beyond the “Well, how about more education” approach they opted for back in April.