Lower interest rates are expected to result in Salina losing $26,000 in revenue for the coming fiscal year.
Mayor Nyals Andreason said budgets for the last two years have been about $507,000, but that revenue is expected to fall below $500,000 this year.City employees are not expected to get salary raises, and department heads have been directed to trim their expenditures. Less spending is expected for building maintenance, office expenses, travel, equipment and buildings.
Residents will pay $1 more per month for each connection in pressurized irrigation fees, however, equating to about a $10,000-a-year increase. That money can't be used in the general fund to operate the city. It instead will remain in that department and be used to pay indebtedness and make up the difference in lost interest revenue.
Andreason said city officials have spent many hours trying to come up with a balanced budget that will not diminish services to residents. He noted that Salina hasn't had a property tax increase for almost 10 years, although school and county taxes have substantially increased.
He said it "has been difficult with the increased cost of wages, materials and equipment" not to increase taxes.
The mayor said the budget for council members to attend the League of Cities and Towns convention is being cut from $3,000 to $1,500, and council members won't be reimbursed for travel of less than 100 miles. Also, money isn't being budgeted for the youth council or beautification committee, although a small contingency fund will be maintained for these activities.
"With the inauguration of emergency telephone 911, the council is investigating the discontinuance of dedicated lines for the police and fire departments," Andreason said.
"It seems that the economic crunch is catching up with our area. . . . Eventually the city may have to seek additional sources of revenue to operate city government." He said there is a possibility that the Southern Utah Fuel Co. mine could shut down for about a month during the next year, with employees taking forced vacations without pay.
A survey by council members has also indicated that purchases at local businesses have declined. "With these and other economic cutbacks in our area, the City Council wants to be on the safe side of estimating revenues and cut costs commensurate with these indications," the mayor said.