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March 23, 2008 - 8:04PM
Scottsdale avoids budget woes plaguing cities
Comments | RecommendBrian Powell, Tribune
Scottsdale will be able to maintain its program and service levels through the next year, unlike other cities where financial shortfalls have forced cuts and layoffs.
However, the proposed 2008-09 city budget released Friday reflects a decline in city sales tax collections that will result in less available cash for new projects and smaller employee raises than in past years.
"My recommendation is don't add anything and don't spend anything unnecessarily," acting city treasurer Craig Clifford said.
The proposed $1.4 billion budget, which includes nearly $850 million in capital projects, will be presented to the City Council on Tuesday.
City revenue is projected to be flat, but expenditures are projected to increase 4 percent in 2008-09. The budget proposes transferring $22.6 million from the General Fund to other projects and funds.
The cash transfers are a sharp decline from the $55 million spent this year, which is seeing an 11 percent spending increase despite flat revenue.
The budget does not propose any cuts in programs or services, and includes some increases such as the trolley service expansion and the mandated dust control program.
There are no planned layoffs or freezing of open positions. However, departments will be asked to spend less money, Clifford said.
All employees would receive a 2 percent cost-of-living raise in January. Last year's cost-of-living raises were 6 percent, with staggered increases coming in both July and January. The raise was one reason the council was divided on the 2007-08 budget and it passed with a slim 4-3 majority. Employees not at the top of their pay ranges will also be eligible for up to a 5 percent merit raise.
The proposed budget adds 11 new staff positions, but shows a decrease by one position from the General Fund.
The city proposes a $7.4 million increase in property tax levies, but the rate is expected to remain at $0.79 per $100 of accessed value. Water, sewer and trash rates are estimated to increase a combined 5 percent over the year.
The council will vote on the final budget in June. The 2008-09 budget takes effect July 1.
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