by Tracy McCue, Sumner Newscow — The Wellington City Council has directed City Clerk Shane Shields to prepare a budget calling for a 3 mill increase from the previous year t0 city property tax owners.

The increase is expected to generate $120,000 in revenue to go into the city general fund and will offset possible increases in the electric rates which have yet to be addressed by the council.

The council is hoping to build back the utility reserve fund in hopes of not affecting the city bond rating (see story here). The council hopes to build the reserves from $5.5 million back to $8.5 million.

The directive was given to Shields at Wednesday afternoon’s work session at the council chambers. Earlier this year, the council increased the water and sewer rates.

Shields will now complete the preliminary hearing and will present the budget for a “Notice of hearing.” That will be sent to the legal publication two weeks before the budget is completed. The public hearing and the finalized budget vote will be held by the council at its August 18 meeting.

The 3-mill proposed increase will also include several cuts in the general fund. The proposals for the 2016 general fund budget is as follows:

•The ambulance and fire department is having a decrease in property tax expenditures from $93,605 to $35,430.

•The Library is requesting the same budget as in 2015 at $225,284.

•Special Liability fund will remain the same with contingency at $72,674.

•The hospital sales tax fund is budgeted to increase from $1.26 to $1.49 million due to the implementation of a half cent sales tax in April 2015 and approved by voters in November.

•There is no increase in the special city highway fund and will delay a $200,000 purchase of a street sweeper.

•There is a slight decrease in the special alcohol and drug program.

•The special parks and recreation fund will be the same with three items planned for 2016 at a cost of $10,500 that includes playground mulch, picnic tables and Woods Park bridge repair.

•The tourism and convention business goes from $32,000 to $25,000, with $10,000 going to the Wellington Area Chamber of Commerce, $10,000 going to the Wheat Festival promotion and $5,000 to other groups.

•An increase of $121,440 in bond and interest with budgeted reimbursement payments from Sumner Regional Medical Center for boilers and other infrastructure made in 2010.

•A decrease on emergency reserves from $15,000 to $7,000 for capital outlay general services and $65,000 to $10,000 for capital outlay expenditures for the police department.

•A decrease in capital improvement expenditures including $20,000 for a pool slide.

•The subsidy from the general fund for 2015 increased to $72,900 from the original budget of $57,500. A transfer of $90,000 to golf course capital improvements were removed which eliminated three proposed purchases of equipment for 2016.

•An slight increase in sanitation collection expenditures.

•The airport includes a $270,000 expense for the runway project should the FAA grant be awarded, although, an outside source of funding would have to be found. The $270,000 is the 10 percent city cost for the project.

Revenue projections without a mill increase is $8.3 million and expenditures at $8.2 million.

The council gave a directive to Wellington City Manager Roy Eckert to freeze all city employee salaries as is and to eliminate positions based on attrition.

Shields said at this time, no changes in overtime have been budgeted. That was briefly mentioned at the work session Wednesday with Eckert saying he is going to talk to the department heads concerning the matter.

The big issue will be surrounding the hospital. A work session was scheduled for today. Shields told the council that any money coming from the hospital will be budgeted as a net gain.

The work session was attended by all council members except Kip Etter. Council member Jim Valentine left after the first hour of the two-hour meeting.

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