By QUINTON SMITH/YachatsNews.com
YACHATS – The Yachats city council has approved a spending plan for fiscal 2022-23 starting July 1 that focuses on re-staffing city hall with employees and beginning several significant projects.
The city’s more flexible $1.75 million general fund budget represents a small portion of the $14.3 million that the city will have on the books over the next 12 months, which includes $7.1 million in reserves for the future, $1.19 million for outside materials and services, $2.29 million in capital expenditures, $627,000 for debt payments, and $1.26 million in state and local fund transfers.
The budget reflects the city’s attempt to re-staff city hall and begin projects that were either stalled or never got under way during the past two years because of the coronavirus pandemic or due to city manager issues and lack of staff.
Fueled by record amounts of transient lodging taxes, the city is in strong financial shape and expects to end the budget cycle next June with a $1.2 million ending balance. The budget process was also smoother than the previous two years because of a re-instituted Finance Committee process to first identify and prioritize spending on capital projects before sending the list to the 10-member Budget Committee, which also reviewed it.
The Budget Committee met twice in May – with little debate on major projects or staffing and more discussion on smaller but visible spending proposals. There were debates – and split votes – among councilors over funding fireworks next July and money for tourism marketing.
In approving the budget last week, the council also approved a 7 percent increase in water and sewer rates, expected to add $6.86 a month to most residential utility bills.
There was little debate during the Budget Committee’s initial meeting and none during the council’s approval June 15 on the re-staffing of city hall, which has mostly been operating with workers on temporary contracts. New city manager Heide Lambert’s proposed hiring includes an office manager, an events coordinator/code enforcement officer, an accounting clerk, a facilities/capital projects coordinator, an administrative assistant, and a quarter-time librarian. The budget also has money to hire two more public works employees this year to begin training and certifying them for eventually operating the water and wastewater plants.
There is also a position and salary set side for deputy city recorder Kimmie Jackson, who went on medical leave in December and then served notice that she intended to sue the city for race discrimination, hostile work environment, retaliation and defamation. Jackson’s medical leave has ended and she is expected back to work this week or next.
Some spending highlights included:
- Allocating more than $300,000 on parks and trails capital projects, including engineering plans for a boardwalk overlooking the Yachats River and pocket parks along Ocean View Drive. The overall capital budget of $919,000 includes a beginning balance of $153,000, $200,000 total in expected grants and contributions, and $305,000 from the 804 Trail settlement agreement;
- Allocating $208,000 for potential repairs to the Little Log Church Museum, which is undergoing another study by Civil West Engineers of Newport;
- Allocating $129,500 for projects in and around the Commons building, including new fascia and gutters and hiring a landscape design company to come up with a plan for the green space behind city hall;
- Allocating $450,000 for 12 water/wastewater projects ranging from $60,000 for a water tank earthquake study, $64,000 for a backwash system for the water treatment plant, to a new tractor and truck;
The council did learn last week that a proposed rebuilding of a 540-foot section of East Second Street in the 2022-23 budget came in more than 60 percent over budget. It agreed with a recommendation from the Public Works & Streets Commission that it reject the bid and find ways to cut back on the project and seek a larger state street grant.
Discussions on marketing, fireworks
The longest discussion in both the second Budget Committee May 23 and council meeting June 15 were changes to how Lambert wants to approach funding the visitor center and whether the city should pay for July 4 fireworks in 2023.
For the past two years, James Kerti held the $65,000 contract to operate a visitor center and do marketing, with access to $22,000 for additional marketing help. Once the Yachats Chamber of Commerce reopened its office and separate visitor center downtown last year, Kerti helped pay for some of its operating costs, supplied printed material and brochures, and left day-to-day operations to the chamber.
This spring, Lambert told Kerti he would not be getting his contract renewed July 1. Upset but ready for a change, Kerti moved to Beaverton and is working remotely on the Yachats contract until July 1.
In her proposed budget, Lambert asked for $30,000 to help run the visitor center, $35,000 for event marketing and $30,000 for general marketing – especially to try to attract more visitors in the spring and fall.
During Budget Committee deliberations, Mayor Leslie Vaaler advocated combining the two marketing budgets and cutting the money by $15,000 to a total of $50,000. “I already thought this was too high and now I think it’s really too high,” Vaaler said.
The committee disagreed, saying it was a very small monetary difference and that Lambert needed the flexibility to re-work the city’s marketing plans. The committee voted 9-1 to approve the overall spending of visitor amenity funds, and the issue did not resurface during the council’s discussions last week.
Lambert said she expects to send out requests for proposals to operate the visitor center and for the two marketing programs in July. The current contracts expire July 1.
The city’s support for July 4 fireworks was debated twice.
The city stepped in this year – on a 3-2 council vote – to provide $25,000 to help the chamber organize a fireworks display July 2. The event has been mostly funded through donations for 20 years, but after cancellations the past two years there was not time to raise money on short notice this spring.
During Budget Committee deliberations May 23, Vaaler’s motion to cut all city contributions to next year’s fireworks show was defeated 3-6, with the mayor, councilor Mary Ellen O’Shaugnessey and Lance Bloch voting yes. Although it attracts thousands of visitors, Vaaler and O’Shaugnessey argued fireworks were environmentally damaging, scared pets and could trigger PTSD in some residents.
After more committee discussion, a motion to keep the $25,000 in the budget and to have Lambert investigate the possibility a “night time display” was approved 6-3, with budget committee member Brad Webb joining Vaaler and O’Shaughnessey in voting no.
Vaaler’s attempt to bring up the fireworks issue again during the council’s June 15 formal budget approval did not gain any traction.
The issue may be moot by 2023. Two council positions – held by O’Shaughnessey and Anthony Muirhead, who are both appointed – are up for election in November, as is the mayor. Both Vaaler and O’Shaugnessey have indicated they will not run.
A new mayor and council will have to wrestle fireworks issues and what constitutes a “night time display” next winter when the fireworks contract with Western Display comes up for renewal with the chamber.
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For a complete view of the city of Yachats’ 2022-23 budget go here