Council reviewers debate $35,000 shortfall, police pay bump and equipment purchases

Council members reviewed departmental requests and capital needs at the May 26 work session, noting one of the day’s clearest budget tensions: a proposed increase for North Valley Police created an estimated $35,000 general‑fund shortfall that members discussed offsetting with capital adjustments.

Staff member said the police line would increase from $910,000 to $945,000 to cover pay raises (about a 4% increase), producing a roughly $35,000 gap in the general fund. To cover the shortfall, staff proposed trimming arena capital improvements (to support additional seating, concessions and restrooms) from $60,000 down to $25,000 and to revisit the figure at tentative final adoption if a matching grant opportunity appears.

Council debated whether to buy specialized crack‑sealing equipment (staff estimated a purchase might cost as much as $150,000) or to contract out chip/crack sealing. Members generally favored contracting for large pavement projects and leaving smaller items to contractors rather than buying and maintaining specialized equipment now. For cemetery operations, the council favored budgeting a line to allow staff to shop surplus markets for a used dump/truck (members quoted price ranges roughly $15,000–$30,000) and suggested preauthorizing a not‑to‑exceed amount so staff can act quickly when a suitable vehicle appears at auction.

Staff also reviewed the water fund forecast: roughly $252,000 projected revenue against about $251,000 in annual debt payments and $165,000 in funded depreciation, leaving limited ready cash for new capital without reallocation. Council discussion touched on allowable uses of water/sewer reserves and internal transfers, with staff noting they would examine available resources prior to final adoption.

No budget votes were recorded in this work session; staff was asked to return with a balanced general‑fund recommendation for tentative adoption, a dollar figure for a cemetery truck budget line and procurement guidance (preauthorization threshold) for surplus purchases.