Palmer ’08 Budget: Preparing for growth

PALMER — With the holiday season in full swing, budgeting one’s future finances may be troublesome. But working within a budget for holiday gifts is pocket change compared to outlining a nearly $9 million city budget.

Palmer City Council approved a 2008 budget this week that includes an $8.9 million general fund, a nearly 10-percent increase over 2007’s budget. New staff positions, a more aggressive marketing plan and increased pay for police officers all factor into the increase, said Dean Baugh, Palmer’s finance director.

Council and city staff expect to be busy in 2008, which is reflected in the budget, Baugh said. “There is a lot happening in this budget.”

New to the budget in 2008 is $50,000 designated for marketing the city, he said. By making Palmer more visible, it’s hoped the city can promote its current businesses and encourage new business and industry to locate in Palmer. The budget also includes money for the addition of three full-time employees and one part-time employee, Baugh said. The full-time employees include a human resource position, maintenance position and city planner.

Higher pay for the Palmer Police Department is reflected in a recent independent committee examination of the city’s operations, which determined Palmer police officers are underpaid compared to other police departments in the state.

According to budget, personnel expenses for the police department in 2007 amounted to $1,467,507. For 2008, expenses are listed at $1,572,951 — an increase of 7 percent.

The aggressive budget reflects the city’s economic position in the Mat-Su Valley and a recent healthy trend, Baugh said.

“There was a lot economic development this year so the city is in good shape,” he said.

Not only is the city good financial shape now, but Mayor John Combs believes the future is looking bright as well.

“It’s a good direction that we’re taking,” Combs said. “The budget is really a business plan and if we can procure the funds it’s going to be good for the City of Palmer.”

For Combs, the right direction includes providing the necessary funding to “ramp up” the police department and creating a plan for annexation to ensure economic growth and cultural integrity in Palmer.

“It’s a balanced budget,” the mayor said. “Now it’s a matter of obtaining all the outside funds needed to accomplish all of this.”

According to the budget, the city has a list of expenditures for 2008 that surpasses $14.6 million. This total includes budgets for the general fund, enterprise fund, capital improvement project fund and debt service fund. With more than $2.7 million for capital improvement projects and project equipment outlined for 2008, the city will aggressively seek grants and state funding to accomplish its goals, Combs said.

Councilman Tony Pippel agrees with Combs and likes the direction Palmer is going, but questions some of the costs associated with its chosen path.

“I want to be on the prudent side because we’re not dealing with my money — we’re dealing with the people’s money,” Pippel said.

Pippel said he’s uncomfortable with a budget that includes increased costs without a revenue stream to fund the document’s goals, most notably with capital projects that require federal and state monies.