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Despite debt, city says no tax increase
Staff writer
chriscam@observer-reporter.com
With recent court approval to float another $2 million in bonds, Washington's long-term debt is now a whopping $26.8 million.
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Annual loan payments are due until June 2029, when a final payment is made on $4.6 million borrowed from the Washington County Authority loan pool.
Cash flow for the long-term indebtedness is part of the city's 2008 budget. In the coming year, the city will spend $618,733 to pay back principal and interest on the loans, some of it from their Community and Development Block Grant funds. City Council on Thursday adopted a $8.8 million budget without a tax increase.
The amount of debt will increase in coming years as payments are due on other bond issues. The city also has pledged the majority of its federal CDBG money to repay the bond issue for downtown revitalization. That money has been used in the past for other community improvement projects.
Mayor Ken Westcott commended those who worked on the budget, saying it was difficult to do with the city teetering on bankruptcy.
"They did a great job in understanding the city's limited resources," he said.
The city went to court to request the bond issue in order to pay its bills for the remainder of the year. City officials testified there had been a number of revenue shortfalls in 2007, including $150,000 less in real estate taxes.
Councilman Matt Staniszewski voted against the 2008 budget, saying shortsightedness that occurred in previous administrations has put the city in its present situation.
Perhaps officials didn't do what was right 25 or 30 years ago, said Councilwoman Virginia Ullom, but they had little choice but to go into debt to pay into the pension fund.
"I have confidence we're going to get out of this if we all work together," she said.
New three-year contracts with the Teamsters and Service Employees International unions were approved by council. The SEIU contact calls for increases of 75, 70 and 70 cents an hour, and the Teamsters' contract includes raises of 65, 60 and 60 cents an hour.
Also addressing council was resident Bill Reihner, who read from a prepared statement that Westcott and Councilman Bob Nicolella had both forgotten they were voted into office to serve the public.
"Who wrote that for you?" Nicolella asked.
Reihner shot back that that attitude is why Nicolella was not re-elected to council.
Nicolella thanked his supporters Thursday. He has served on council for 20 years. Councilman Allan Bunner also lost his bid for re-election. Westcott lost his bid in the primary to return as mayor to city Treasurer Sonny Spossey.
"We don't always get along, but hopefully we all had the best interests of the city at heart," Westcott said.
