In light of anxiety over the city's lack of funds, the Bellevue City Council glimpsed preliminary 2006 budget figures at a regular meeting Thursday, June 23. The preliminary figures indicate that the city, once again, faces a deficit.
The preliminary draft of the city budget—which the council will revisit at its meeting Thursday, July 14—proposes just over $1,413,000 in general fund expenses. The general fund pays for all city services, except sewer and water.
The proposed budget estimates a balanced water fund of $379,000 and a balanced sewer fund of $412,100.
Although the water and sewer funds are balanced, prospects for balancing the general fund appear to be grim.
The drafted budget estimates the 2006 fiscal year general revenues to be $139,650 shy of the projected expenses. The deficit arises from an actual decrease in the city's income coupled with an increase in expenses.
In 2005, the city's actual income was nearly $30,000 more than the projected revenue for 2006.
The city's total general fund income is estimated at $1,273,488. The figure includes the city's anticipated sale of two residential lots in the Chantrelle subdivision to acquire a lot owned by the Idaho Transportation Department. The city anticipates the sale of the lots will generate $450,000 to purchase the ITD lot. The sale accounts for the upward budget adjustment, when compared to last year's numbers.
Last year the city approved an $852,904 2005 budget, which included funding for a full-time fire chief. The council approved a $40,500 salary for the chief, including benefits. The money for the position was borrowed from the city's savings fund.
This year the major expenses include funding a full-time fire chief and other payroll increases.
The deficit leaves the city facing a difficult decision—operate under a deficit, borrow from savings or cut city services.