On July 1st, the Coos Bay’s city budget for 2024-25 was adopted as approved by the budget committee during the May 9th meeting. City budgets run from July 1st through the following year June 30th and take months to prepare. The city of Coos Bay took a straightforward look at the budget by considering a multi-year approach as they decided on how to distribute this year’s funds into needed infrastructure around the city. The budget as recommended by Nichole Rutherford, City Manager in the 151-page document, “maintains current city services, and represents an effective use of the city’s resources.” Rutherford went on in her letter to recommend the budget in the early May meetings stating that, “Staff look forward to working with the Budget Committee to review the plan and to discuss alternative approaches for delivering key community services while maintaining the financial stability and continuation of efforts to build a brighter future for the City of Coos Bay.”
What are the overall costs expected in this year’s budget? The Coos Bay budget committee estimates a revenue of $80.4 million with an expenditure of an equal $80.4 million. Within the budget Rutherford explains that budgets revenues are looked at conservatively, but expenditures are based on the understanding of the increases and decreases in different departments. The budget is organized into 16 funds, a fund is a grouping of related accounts used to support control over resources segregated for specific activities or goals. The 16 funds in the proposed budget are broadly organized into four categories: Operating Funds, Debt Service Funds, Capital Improvement Funds, and Reserve Funds.
The majority of the city’s budget is found in the operational expenditures which contains personnel costs. This includes the city police, fire, and utility employees. The current Collective Bargaining Agreements (CBA) are with the American Federation of State, County, and Municipal Employees (AFSCME) and International Association of Firefighters (IAFF) which both include a 4% COLA (cost of living adjustment) based on negotiated CBAs the Consumer Price Index. Coos Bay Police Officers Association (CBPOA) is amid negotiations, but the current budget estimates an increase of 3.7% COLA. Non-CBA represented staff saw an increase of 4% COLA. Personnel expenses include 42% of the city’s total operating budget, with the 129 current employees comprising more than 20 million of the city’s budget. The biggest increase to the budget this year was the 10% increase in medical, dental and vision coverage for employees.
The General Fund consists of carryover from the prior budget year, property taxes, franchise fees, licenses and permits, fines, grants and state revenues, use of money and property, services and repayments, other revenue and Du Jour financing repayment. The General Fund expenditure and revenue equal $19,555,235 with the largest revenue coming from property taxes of more than 7.4 million.
One of the largest costs increases this year comes from the Wastewater Fund which covers the city’s basic operations. A rate increase of 6.5% has been proposed to help offset the continued increase of demand within the city. “The rate reflects a policy decision to manage debt as a way to stabilize rates based on the recommendation of the commissioned Sewer Rate – Cost of Service Study.” Rutherford continues her advisement, “This budget reflects the city’s continued effort to complete state mandated capital improvements to the infrastructure at a cost of approximately $81.4 million (2019 dollars). The proposed budget includes $12,305,000 in loan and grant proceeds, coupled with resources on hand to undertake $19,995,627 in wastewater utility capital improvement.”
If you want to know more about where your tax dollars are going within the budget, have questions about the budget or want to be involved in next year’s planning of the budget, you can access everything on the city website www.coosbayor.gov.
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