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Preliminary budget talks top work session
Thelma Grimes/San Pedro Valley News-Sun
The Benson City Council held its second work session Monday night to discuss the 2009-2010 budget. City staff and the council have said this year's budget will be easy to plan because very little is changing, except for health-care benefits.
In a 45-minute discussion Monday, Jim Cox, the city's finance director, said health-care costs were expected to increase by 5 percent next year, but that estimate was way off, with actual costs increasing by 27 percent.
For the current fiscal year, Cox said the city paid $595,000 for employee benefits. Next year the city has been quoted an estimate of $756,000. With that cost, Cox said he was concerned about keeping the level of benefits staff has now, and finding a way to pay the increased fees.
One of those options is to change to a Paid Provider Organization (PPO) combined with a city-sponsored Health Reimbursement Arrangement (HRA). This plan would be beneficial to staff and cost the city about $100,000 less.
Council members seemed pleased with the plan, but took no action since it was only a discussion meeting.
Cox briefly discussed personnel costs for the coming year, noting that there are few changes planned, except for the addition of a custodian for $29,000.
City Manager Glenn Nichols said over the last few years the city has hired an outside cleaning service, but they have failed to meet city standards. Instead, the city will hire its own custodian, and spend about the same amount, he said.
The council will continue budget discussions on Monday, May 18 and again next Wednesday, May 20. The tentative budget is expected to be approved on May 26. The final budget is expected to be approved June 22. The fiscal year runs between July 1 and June 30.
Following the work session, the council held off on spending more than $41,000 to remove asbestos from the old City Hall building along Huachuca Street, following the advice of newly-appointed City Attorney Michael Massee.
Public Works Director Brad Hamilton said he hired Southwest Hazard Control to assess the building for about $1,300. The report came back stating the building is filled with asbestos, which has infested the ceiling, walls, floors and windows. It is in everything except the metal frame.
The company also offered an estimate of $41,589 to take the steps required to remove it and dispose of it as per Arizona Department of Environmental Quality standards. Hamilton said once the asbestos is removed, city crews could demolish the building.
Vice Mayor Toney King said he didn't feel now was the right time to spend that kind of money, while Mayor Mark Fenn said it would be good to get rid of the building and use the area for downtown parking.
Councilman Al Sacco expressed concern over the city's liability with asbestos being confirmed. But Councilman John Lodzinski and Hamilton explained that it is not harmful to the general public and is the kind of asbestos that can only cause problems if moved.
It appeared that after about 10 minutes the council was on its way to approving the measure until Massee said it was not a good idea.
Massee said the wording on the agenda did not give the council proper authority to spend that kind of money without properly notifying voters. Massee said the agenda did not say the city would possibly spend up to $41,000, and only stated they would discuss the removal and asbestos-containing material at the old City Hall.
Following Massee's recommendation, the council also did not vote on a request from the Southeast Arizona Economic Development Group (SAEDG) to support them in their venture to secure stimulus funds for solar energy deployment in Cochise County.
George Scott, the SAEDG executive director, said the goal is to make Benson a solar model for Cochise County and Arizona.
"There is a lot of stimulus money out there, and we believe we can get some of these projects in Benson," Scott said.
Teaming up with Venture Catalyst Inc. to write the needed grants, Scott said they already have commitments from Elfrida, Bowie and Sunsites and would like Benson's support in the process.
Scott asked that the council direct staff to work with grant writers. Council members appeared to be in favor of the idea, but again, Massee said the agenda did not say the council had planned to take action on the issue.
The first agenda item only says "presentation and discussion" Massee stressed. Scott is expected to get official council approval at the May 26 council meeting.
The council also gave staff members approval to go for several grants.
Fire Chief Keith Spangler will be applying for $42,250 to purchase an exhaust removal system for the fire station on 7th Street. Spangler said there is currently no system in place. The city's match if the grant is approved is $2,112.
If the police department receives the $11,596 from the Arizona Governor's Office of Highway Safety, more speed enforcement equipment will be purchased.
With no city match required, Acting Police Chief Paul Moncada said the city has two radar units but one of those is broken. If the grant funding is approved, the department will purchase six more radar units, four of which will be permanent mount and directional, and two will be hand-held units, which can be transferred from car to car.
An area resident expressed concern that the radar units are an attempt to bring in more revenue, noting that Benson is a tourist town and should not be known as a tourist trap.
Moncada said the radar units are helpful not only in slowing down speeders, but also in identifying other issues on city streets. Councilman Lodzinski agreed.
The council also approved the final site plan for renovations at Apache Powder Park near City Hall on 6th Street.
The grant funding for the project was approved last year.
The Benson City Council held its second work session Monday night to discuss the 2009-2010 budget. City staff and the council have said this year's budget will be easy to plan because very little is changing, except for health-care benefits.
In a 45-minute discussion Monday, Jim Cox, the city's finance director, said health-care costs were expected to increase by 5 percent next year, but that estimate was way off, with actual costs increasing by 27 percent.
For the current fiscal year, Cox said the city paid $595,000 for employee benefits. Next year the city has been quoted an estimate of $756,000. With that cost, Cox said he was concerned about keeping the level of benefits staff has now, and finding a way to pay the increased fees.
One of those options is to change to a Paid Provider Organization (PPO) combined with a city-sponsored Health Reimbursement Arrangement (HRA). This plan would be beneficial to staff and cost the city about $100,000 less.
Council members seemed pleased with the plan, but took no action since it was only a discussion meeting.
Cox briefly discussed personnel costs for the coming year, noting that there are few changes planned, except for the addition of a custodian for $29,000.
City Manager Glenn Nichols said over the last few years the city has hired an outside cleaning service, but they have failed to meet city standards. Instead, the city will hire its own custodian, and spend about the same amount, he said.
The council will continue budget discussions on Monday, May 18 and again next Wednesday, May 20. The tentative budget is expected to be approved on May 26. The final budget is expected to be approved June 22. The fiscal year runs between July 1 and June 30.
Following the work session, the council held off on spending more than $41,000 to remove asbestos from the old City Hall building along Huachuca Street, following the advice of newly-appointed City Attorney Michael Massee.
Public Works Director Brad Hamilton said he hired Southwest Hazard Control to assess the building for about $1,300. The report came back stating the building is filled with asbestos, which has infested the ceiling, walls, floors and windows. It is in everything except the metal frame.
The company also offered an estimate of $41,589 to take the steps required to remove it and dispose of it as per Arizona Department of Environmental Quality standards. Hamilton said once the asbestos is removed, city crews could demolish the building.
Vice Mayor Toney King said he didn't feel now was the right time to spend that kind of money, while Mayor Mark Fenn said it would be good to get rid of the building and use the area for downtown parking.
Councilman Al Sacco expressed concern over the city's liability with asbestos being confirmed. But Councilman John Lodzinski and Hamilton explained that it is not harmful to the general public and is the kind of asbestos that can only cause problems if moved.
It appeared that after about 10 minutes the council was on its way to approving the measure until Massee said it was not a good idea.
Massee said the wording on the agenda did not give the council proper authority to spend that kind of money without properly notifying voters. Massee said the agenda did not say the city would possibly spend up to $41,000, and only stated they would discuss the removal and asbestos-containing material at the old City Hall.
Following Massee's recommendation, the council also did not vote on a request from the Southeast Arizona Economic Development Group (SAEDG) to support them in their venture to secure stimulus funds for solar energy deployment in Cochise County.
George Scott, the SAEDG executive director, said the goal is to make Benson a solar model for Cochise County and Arizona.
"There is a lot of stimulus money out there, and we believe we can get some of these projects in Benson," Scott said.
Teaming up with Venture Catalyst Inc. to write the needed grants, Scott said they already have commitments from Elfrida, Bowie and Sunsites and would like Benson's support in the process.
Scott asked that the council direct staff to work with grant writers. Council members appeared to be in favor of the idea, but again, Massee said the agenda did not say the council had planned to take action on the issue.
The first agenda item only says "presentation and discussion" Massee stressed. Scott is expected to get official council approval at the May 26 council meeting.
The council also gave staff members approval to go for several grants.
Fire Chief Keith Spangler will be applying for $42,250 to purchase an exhaust removal system for the fire station on 7th Street. Spangler said there is currently no system in place. The city's match if the grant is approved is $2,112.
If the police department receives the $11,596 from the Arizona Governor's Office of Highway Safety, more speed enforcement equipment will be purchased.
With no city match required, Acting Police Chief Paul Moncada said the city has two radar units but one of those is broken. If the grant funding is approved, the department will purchase six more radar units, four of which will be permanent mount and directional, and two will be hand-held units, which can be transferred from car to car.
An area resident expressed concern that the radar units are an attempt to bring in more revenue, noting that Benson is a tourist town and should not be known as a tourist trap.
Moncada said the radar units are helpful not only in slowing down speeders, but also in identifying other issues on city streets. Councilman Lodzinski agreed.
The council also approved the final site plan for renovations at Apache Powder Park near City Hall on 6th Street.
The grant funding for the project was approved last year.
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| St. David honors | Despite steep budget cuts, alternative may provide some relief |
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Reader Comments
The following are comments from the readers. In no way do they represent the view of bensonnews-sun.com.
JV wrote on May 13, 2009 11:16 AM:
" Preliminary !!
Doesn't the fiscal year start in two months.... ?? Shouldn't we have a handle on costs prior to that.
Last year the budget was finalized 5 days prior to the beginning of the fiscal year.
P.S. - don't bank on stimulus money. That is just silly to assume the city will receive it. "
Doesn't the fiscal year start in two months.... ?? Shouldn't we have a handle on costs prior to that.
Last year the budget was finalized 5 days prior to the beginning of the fiscal year.
P.S. - don't bank on stimulus money. That is just silly to assume the city will receive it. "
John wrote on May 13, 2009 4:54 PM:
" We live in the darkest county in the USA. I was literally blinded by the mobile RADAR camera on highway 80 in Saint David about a month back. i was startled and could not see anything for several hundred feet while traveling 55 MPH and almost struck the RADAR trailer. Then there was the flash in the rear view mirror! I was still seeing green spots over five minutes later. While I support law enforcments efforts to reduce speeding, I do not believe that blinding motorists in moving vehicles in an effort to do so is a safe practice. "
John K wrote on May 16, 2009 9:25 AM:
" Downtown parking!!! When was the last time anyone had problems parking in downtown Benson. Due to the high city sales tax all the shoppers have went to Tucson or Sierra Vista. This just a scam for Fenn to give work to his contractor buddies. "
Jim C wrote on May 16, 2009 1:25 PM:
" Oh No! The city will need downtown parking. Benson’s streets will be paved with gold. Visitors will be driving and flying into Benson by droves to spend money. We are told this will happen as soon as the caverns open. Hurry and get your parking spot now! "
WTH wrote on May 13, 2009 10:44 AM:
Good work done by the new City Attorney! "