On Tuesday, Dec. 2, the Federal Heights City Council approved the 2009 budget. The total planned expenditures for 2009 equal about $14.5 million. The Federal Heights budget includes payment for the following services: road maintenance, fire department, police officers, ambulance, water, sewers, parks, and general city operations including planning, administration, elections, etc.

I made the following comment at the meeting (though it is expanded a little here for better understanding):

"As we pass this budget, I will vote yes but I have to comment on our situation because I believe we need to be considering serious actions to ensure the future financial stability of the city.

"City staff did a great job of creating a lean 2009 budget, which increased expenditures only a tiny fraction from 2008, but I am still concerned because the city has major budget items- multimillion dollar projects - coming up in the next few years: complete road reconstruction across the city and a new public works building, as well as major renovations to our water and sewer lines.

"Staff and council have been very prudent in creating healthy financial reserves for normal circumstances, but we have special circumstances (not unlike other governments these days but special historically and in the sense that we could face major problems if we don't address these special needs). Though we can do economic development activities which will increase revenues from sales and property taxes, and we could try to pass a special tax (such as an amusement tax), city staff has said these revenue amounts will not be enough for these upcoming projects and long-term financial stability. So, I believe an increase to our very minimal property tax may be necessary to meet our future needs.

"But, we first need to understand what our future needs really are and what projected revenues are. Then, with that information, we can determine if it's the will of the residents/voters and the best option for the city. We need to see some forecasts outlining the roadwork with related costs and estimated timeline of when it should be completed, as well as the same for the public works building, water/sewer lines and any other major projects that are required of the city to maintain its basic infrastructure. Along with those outlines, we need projected revenue estimates for the next five to 10 years so we can compare our funds to our expected expenditures. Then, we can make alternative revenue estimates based on whether we pass certain tax increases vs. the types of service cuts we would need.

"I am hoping the council will agree with me in the coming months to direct the city staff to prepare these types of forecasting documents so we can have the tools to make the decisions about how best to serve the citizens and how best to handle their money. I have not been on council long so I don't know all the decisions that happened to get us where we are, but I do know that we don't have any master plans that describe our future needs or help us truly understand our financial situation. Council really needs to have more tools to help us understand the city's needs. Weshould havemulti-year master plans for capital improvement projects. I would like us to consider additional accounting tools as well, such as profit and loss statements on a quarterly basis.

"To ensure that the city can afford the services and infrastructure desired or minimally required by citizens, we have to start making plans. We will continue to disagree on solutions until we better understand our future, based on relevant information. Otherwise, the staff will continue to hint/hope/nudge us into supporting a property tax increase, whether we think we need it or can get it or not. And, council will continue to place false hopes on revenue streams that aren't sufficient and continue to avoid talk of a property tax increase.

"The city is financially stable this year and will be in 2009 as well. However, it is truly uncertain as to what the next few years holds for us, based on our expected needs (expenditures) and income. We know we have major projects that will take big chuncks out of our budgets, but we don't really know how much they will cost, when they will have to happen, and whatour alternatives look like (i.e. service cuts, new revenue, etc.). All may fall into place easily but we really don't know, and if it does not, it could mean severe cutbacks for all or infrastructure failure. We can and should prepare ourselves better so we can avoid the latter situation. I urge council to cooperate with me in putting together the plans and tools we need to make positive choices about our budget that will support a sustainable and healthy city."

I hope the above helps you better understand the city's financial situation. It would be great if you could stay tuned and keep updated on the city's plans for services, infrastructure and funding.