According to a press release just issued, “The City Councils of the City of Hoquiam and Ocean Shores will consider a short-term agreement to provide financial management services to the City of Ocean Shores beginning September 1. ”
“The resignation of Ocean Shores Finance Director Art Wuerth created the opportunity to consider other methods of delivering essential public services.

At this afternoon’s budget study session, with council, the mayor and several department heads, the veteran councilman Dave Creighton just said, to the department heads present (Mike Styner, Police/Fire; Ken Lanfear, Public Works; latecomer Ken Mercer, Convention Center): “This is going to be the hardest budget that staff has ever gone through. I’m going to nail you guys for every single dime. This budget will be council driven, not staff-driven
“I don’t feel in the last few years we have done a very good job in budgeting . . .
“I believe it’s about time we took control of the budget and decide where the money is going.”

Looks like Ocean Shores is on pace for a good year in tax collection. Through June 30, the city has collected $2.15 million, or 49.71% of the year’s budget of $4.33 million; Art Wuerth, the finance director, said that the Utility Tax – Waterworks is a few months behind, so that would bring the total to just over 50%. General Property Tax collections, the biggest tax revenue source, are at $1.3 million, or 55% of the budgeted $2.4 million. The second biggest, Sales Tax – General, is at $316,000, or 48% of the year’s budget of $656,000; the year-to-date total does not include July, August and September, typically by far the biggest months for sales tax.
Taxes make up 88% of the budgeted General Fund revenues. The second biggest revenue source, Licenses & Permits, is far ahead of pace, with year-to-date revenues of $207,890, or 70% of the budgeted $295,650.

After a little vacation, I’ll be back tomorrow for the RIG (Readers Input Group) “See Party” finale, 10 a.m. at the Library. We’ve been trying to “see” if there are alternative ways to fund the Library. Related reading material: The City’s first-half numbers, just out: os first half 2010

Good News: Licenses & Permits are at 70% of the budget, on pace to far exceed the conservative $295,000. Convention Center rentals are at $55,000, 61% of the projected $90,000. Self Insurance payments $84,000, 37% of the annual budget of $226,000. Departments that have spent less than 50% of their budget include: Engineering, Legal Service, Municipal Court.

Not-S0-Good News: Legislative (69.3 %), City Hall (64.3% ), Fire Dept. (64%) and Police (56.7 %) all way over 50% of their budgets, at the half-way point.

This week’s Locals Only column looks for volunteers to help analyze the Ocean Shores budget:

Something is not right, here . . .
We, the residents and property owners of Ocean Shores, are paying more, every year.
And receiving less.
There have been increases in property taxes in each of the last two years,  and expect another 1 percent increase for 2011. On top of that, in 2011 there will be an EMS levy of 35 cents per thousand, almost double the 19 cents per thousand in 2008 and 2009. (Statistics cited in this column from 2010 Adopted Budget)
And now the City of Ocean Shores will ask for another 22 cent levy, “to keep the Library open.”
I’m all for the Library staying open, but I have preliminary questions:
*Why do we need another levy?
*What happened (and is happening, and will happen) to the rest of the money?
*Why has Ocean Shores laid off so many employees over the last two years, and cut so many services . . . only to ask for more money from the locals?

Councilman Bob Crumpacker complained of the Library Board’s recommendation for a 22 cent levy (which will be presented tonight):
“Quite frankly, I’m offended by this request. I think it’s too much . . . People need to get the idea we’re not a Cadillac anymore. We’re a Chevy.”
Chief Mike Styner reiterated the need for more police personnel: “The guys are working too much, the work load is getting out of hand, and we’re just getting into the busy season.”
Finance Director Art Wuerth on the first quarter, 2010:
“We’re right on target with revenues, so that’s good news . . .On the expenditure side, in general most of the departments are on budget or close to budget. Overall, the city is running a little bit ahead of schedule.”

At the August, 2008 meeting, Brown & Caldwell provided “Proposed January 2009″ residential water rates, showing reductions ranging from 6 to 18 percent.

City Council did not change water rates, in 2009.

In November, council did approve a new water rate study by Brown & Caldwell, which would factor in the $6 million in water system funding (half that does not have to be paid back, half at 1 percent interest).  Originally, the results of the new water rate study (factoring in the $3 million grant and $3 million at 1 percent interest loan) were to be delivered to City Council by the end of 2009, based on water superintendent Miles Beach’s presentation at the beginning of November. Beach later said via email that “The contract for the rate  update was changed from 30 to 45 working days for completion, in  consideration of the holidays. With that said, we should have the update by mid January with a formal report to council in February.”

A “Water System Capital Improvement Plan” that spells out the costs of the $16 million drinking water upgrade ($7 million 2010-2012, $3.5 million 2013-2016, $3 million 2017-2020, $3 million 2024-2025) is on the agenda, for Monday night’s council meeting.

The new water rate study is not on the agenda.

From Ordinance 876, which amended the City of Ocean Shores hours, and set furlough days:

2.20.040    Temporary Closures in 2010 All offices of the City normally open for the transaction of business with the public shall be closed on the following weekdays during the calendar year 2010 except for waterworks utilities and shared utility:  January 4, February 1, March 1, March 15, April 5, April 19, May 3, May 17, September 20, October 4, October 18, November 1, November 15, November 29, December 6, December 20 and December 27.

furlough ordinance

Last week’s North Coast News asked people “Where did the money go?,” referring to the $2.2 million in “reserves” (or ending balance) that the City of Ocean Shores spent down, in less than two years.

Next week’s story will focus on the year 2007, when, among other things, 13 full time employees (FTE’s) were added and new union contracts were signed, under the guidance of then-City Manager Rich McEachin.

Any thoughts on spending/expansion or otherwise in the McEachin era (Nov. 2006-Dec. 2007)?

Was the spending a big part of our current problems, or was it other factors (recession, Weatherwax vote, etc.)?

How did things go so bad, so fast?

At the beginning of 2008, Ocean Shores had a very comfortable balance (“reserves”) of $2.2 million. Later that year, newly-elected Mayor Dean Bunkers told city council that layoffs would be needed, to maintain a balance of at least $1
million. In late 2009, Bunkers told council that, if drastic action was not taken, there was a danger that checks could be bounced, in early 2010. Now, even after several rounds of layoffs, Ocean Shores begins 2010 with a balance of only $611,058, according to the 2010 budget. While some adjustments may make this figure slightly higher, the 2010 budget only funds the Library and Interpretive Center for three months each.

Additionally, “interfund loans” from the water utility at the end of 2009 total just over $620,000,  primarily to Emergency Care ($303,000), the Hotel-Motel Tax fund ($167,000) and Convention & Tourism ($110,000).