Hailey officials are expecting $300,000 less revenue going into fiscal year 2011, but city employees could see a 1 percent merit-based pay raise, thanks to Mayor Rick Davis.
City employees' health benefits were reduced during fiscal year 2010 to make ends meet. The proposed raises, based on work evaluations by each department head, would help out those employees who have been performing well at their jobs.
"This is something I feel strongly about," said Mayor Rick Davis at a City Council meeting July 26.
Last week, the City Council adopted a tentative budget for fiscal year 2011 not to exceed $13,556,234. Operating expenses will be reduced 7 percent, or $300,000, from the current fiscal year, from $4.5 million to $4.2 million under the proposed budget.
Very low interest rates and a separation of general and operating funds two years ago are expected to bring a 96 percent interest-earnings drop in the general fund next year, resulting in a loss of $150,000. Franchise fees, permits, state sales taxes, local option taxes and property taxes are also expected to drop, taking another $150,000 out of the general fund, resulting in a $300,000 drop in operational expenses.
In keeping with the city's dedication to going green, a hybrid police car, costing $38,000, is proposed to join the Hailey Police Department fleet.
Based on the performance of grant writers in many city departments during last year, a new grant fund would be developed under the proposed budget.
Grants are projected to contribute just over $117,400 to the city payroll in 2011, allowing the city to add one police officer and an energy assurance planner position.
The energy assurance planner would devise a backup energy plan for the city in case of a major blackout, like the one that hit the city on Christmas Day 2010.
The city's capital improvement fund is set to increase by $3.2 million due to the rodeo grounds redevelopment bond, which passed in May.
A public hearing on the proposed budget will take place at 5:30 p.m. Monday, Aug. 23, at Hailey City Hall.
The new fiscal year starts in October.
Tony Evans: tevans@mtexpress.com
