Notice of budget hearing

FORM OR-LB-1

                         NOTICE OF BUDGET HEARING              

A public meeting of the Lowell City Council will be held on June 6, 2023 at 7:00 pm at the Lowell Rural Fire Protection District meeting room, 389 N. Pioneer St., Lowell, Oregon 97452. An option to view and participate in the meeting electronically is available. For instructions on how to join electronically, visit the city website at www.ci.lowell.or.us or call (541) 937-2157. The purpose of this meeting is to discuss the budget for the fiscal year beginning July 1, 2023 as approved by the Lowell Budget Committee. Public comments will be taken in written format as well as in person at the meeting location. Written comments received by 4:00 pm on June 6, 2023 will be read during the public hearing section of the meeting on June 6, 2023. Written comments may be mailed to PO Box 490, Lowell, OR 97452, emailed to admin@ci.lowell.or.us, or delivered in person to City Hall at 70 N. Pioneer St., Lowell, OR 97452. A summary of the budget is presented below. A copy of the budget may be inspected or obtained at 70 N. Pioneer St., Lowell, OR 97452 between the hours of 8:00 a.m. and 5:30 p.m., Monday through Thursday, or online at www.ci.lowell.or.us. This budget is for an annual budget period.  This budget was prepared on a basis of accounting that is the same as the preceding year.

Contact: City Administrator Jeremy Caudle              Telephone: (541) 937-2157

Email: admin@ci.lowell.or.us

FINANCIAL SUMMARY - RESOURCES

TOTAL OF ALL FUNDS

Actual Amount

Adopted Budget

Approved Budget

2021-2022

This Year 2022-2023

Next Year 2023-2024

Beginning Fund Balance/Net Working Capital

1,236,354

1,502,989

1,415,897

Fees, Licenses, Permits, Fines, Assessments & Other Service Charges

1,313,092

1,312,740

1,367,699

Federal, State & All Other Grants, Gifts, Allocations & Donations

518,117

995,062

138,406

Revenue from Bonds and Other Debt

0

230,224

430,000

Interfund Transfers / Internal Service Reimbursements

0

0

100,548

All Other Resources Except Current Year Property Taxes

70,831

708,285

483,462

Current Year Property Taxes Estimated to be Received

183,315

178,646

182,370

     Total Resources

3,321,709

4,927,946

4,118,382

FINANCIAL SUMMARY - REQUIREMENTS BY OBJECT CLASSIFICATION

Personnel Services

515,095

615,376

654,710

Materials and Services

809,245

1,115,724

971,294

Capital Outlay

372,383

1,949,897

1,311,183

Debt Service

161,703

709,198

420,713

Interfund Transfers

0

0

35,000

Contingencies

0

166,755

441,855

Special Payments

0

0

0

Unappropriated Ending Balance and Reserved for Future Expenditure

1,463,366

370,996

283,627

     Total Requirements

3,321,792

4,927,946

4,118,382

FINANCIAL SUMMARY - REQUIREMENTS AND FULL-TIME EQUIVALENT EMPLOYEES (FTE) BY ORGANIZATIONAL UNIT OR PROGRAM

Name of Organizational Unit or Program

     FTE for that unit or program

Administration

155,440

329,276

205,162

      FTE

0.29

0.28

0.3625

Code Enforcement

12,343

8,312

9,394

     FTE

0.07

0.04

0.050

Community Development

134,721

66,591

77,576

     FTE

0.04

0.06

0.080

Library

185,635

416,550

57,284

     FTE

0.23

0.92

0.5875

Municipal Court

17,902

14,466

16,893

     FTE

0.07

0.07

0.10

Parks & Recreation

193,831

961,254

205,660

     FTE

1.32

1.28

0.7375

Police

29,453

29,530

36,231

     FTE

0.00

0.00

0.00

Tourism

3,201

10,586

10,586

     FTE

0.00

0.00

0.00

Blackberry Jam Festival

19,509

28,149

18,123

     FTE

0.00

0.00

0.00

Building Inspections

158,351

121,528

145,018

     FTE

0.04

0.08

0.120

Sewer

811,079

778,839

949,336

     FTE

1.68

1.61

2.04375

Water

977,776

1,051,177

1,159,884

     FTE

1.68

1.61

2.04375

Streets & Stormwater

309,439

357,334

638,790

     FTE

0.44

0.43

0.250

Not Allocated to Organizational Unit or Program

313,112

754,354

588,445

     FTE

0.00

0.00

 0.00

     Total Requirements

3,321,792

4,927,946

4,118,382

           Total FTE

5.86

6.38

6.375

STATEMENT OF CHANGES IN ACTIVITIES and SOURCES OF FINANCING

Changes in activities and sources of financing compared to the 2022-2023 budget year include: (1) CHANGES IN WATER AND SEWER RATES. The balance in the Water Fund has declined since 2019 due to unanticipated events. To ensure that rates are adequate to cover expenses, the adopted budget has an increase in water rates. The Sewer Fund also has an increase in rates to cover increases in expenses. For a residential customer using 4,000 gallons per month, the proposed new water and sewer rates would increase the monthly bill $27.29 per month, or 23.13%. (2) WATER AND SEWER RATE STUDY. The proposed budget funds a rate study at $30,000, split between the Water Fund and Sewer Fund, to contract with a rate study consultant. The rate study consultant will analyze water and sewer operations. The analysis will include recommendations for a long-term plan to keep the water and sewer plants financially and operationally stable. (3) WATER SYSTEM SOFTWARE. The budget funds replacement software that is necessary to run the water plant. The existing software has failed. The estimated cost is $100,000. The software will be paid for through a capital loan from the Sewer Fund ($30,000), as well as loans from public or private lenders ($70,000). (4) SALE OF SURPLUS REAL PROPERTY. This budget anticipates the sale of the northeastern corner of Rolling Rock Park, in accordance with the city's "Downtown Master Plan" and "Parks Master Plan," for commercial development. This budget also anticipates the sale of the old City Hall, with the parking lot remaining part of Paul Fisher Park. The estimated revenues from capital asset disposal are $466,681. These revenues are to pay off the loan used for the new City Hall renovation, as well as to offset the costs of demolishing the old City Hall to prepare the lot for sale. (5) E 1ST STREET REPAIR. Repairs for E. 1st Street due to the water main rupture are budgeted in the Street Fund and Sewer Fund, to be paid for with debt financing pending the city's efforts to recoup its costs to complete the repairs. WHERE TO FIND MORE INFORMATION. For more information, see the City Administrator's recommended budget, available at City Hall and online via the following link (select the May 24, 2023 Budget Committee meeting packet): < https://www.ci.lowell.or.us/bc-budget/page/budget-committee-0 >.

PROPERTY TAX LEVIES

Actual Amount

Adopted Budget

Approved Budget

2021-2022

This Year 2022-2023

Next Year 2023-2024

 Permanent Rate Levy      (rate limit  $2.1613 per $1,000)

$2.1613

$2.1613

$2.1613

 Local Option Levy

$0

$0

$0

 Levy For General Obligation Bonds

$0

$0

$0

STATEMENT OF INDEBTEDNESS

LONG TERM DEBT

Estimated Debt Outstanding

Estimated Debt Authorized, but

on July 1.

 Not Incurred on July 1

General Obligation Bonds

$0

$0

Other Bonds

$1,556,292

$230,224

Other Borrowings

$457,803

$0

     Total

$2,014,095

$230,224