Lebanon City Council cuts spending by 7.5 percent

Last week, the Lebanon City Council approved a budget for 2009-10 with almost $550,000 in spending cuts compared to the current fiscal year.

"We cut down the fat last year. We cut down to the bone this year," Councilman Bill Pickerill told a group of citizens seeking funds last week. "Times are hard for everybody."

The first reading was approved during a special-called meeting June 17 and the second reading was approved during a special-called meeting June 19.

According to the city's amended 2008-09 budget, the city will spend more than $7.3 million this fiscal year. The proposed 2009-10 budget includes nearly $6.8 million in appropriations, a reduction of 7.5 percent.

Last spring, the city projected more than $6 million in spending in the general fund during 2008-09, but final 2008-09 budget figures included approximately $5.7 million in general fund spending. General fund spending has been reduced another 14.6 percent for the 2009-10 fiscal year to nearly $4.9 million.

Another decrease is anticipated in the city's motor fuels fund from $128,000 this year to $125,000 in 2009-10.

The city is projecting some spending increases in other areas. In the sewer fund, the city is projecting nearly $1.5 million in expenses for 2008-09 and nearly $1.8 million for 2009-10. A small increase is expected in the LGEA funds from $5,600 this year to $6,000 in 2009-10.

During the 2008-09 fiscal year, the economy affected the city's revenues in a variety of areas. Initially, the city projected receiving $2.2 million from the occupational tax during the 2008-09 fiscal year, but the final amount was at $2 million. The city is projecting that same $2 million during the 2009-10 fiscal year.

  City of Lebanon budget comparison                '                                         2008-09     2008-09     2009-10                                         original       actual        projected Resources * General fund          6,739,552     6,547,021     5,676,616     Sewer fund             2,208,000     2,691,119     2,894,369 Motor fuels              257,795        257,795        254,795 LGEA fund              10,395           5,600            6,000   TOTAL     RESOURCES           9,215,742     9,501,535     8,831,780   Appropriations     General fund             6,050,500     5,730,955     4,896,315 Sewer fund                1,887,000     1,481,750     1,771,200 Motor fuels                 128,000        128,000         125,000 LGEA                           10,395          5,600              6,000   TOTAL APPROPRIATIONS  8,075,895     7,346,305     6,798,515   Fund Balances General fund               689,052     816,066     780,301 Sewer fund                  321,000     1,209,369  1,123,169 Motor fuels                  129,795     129,795     129,795 LGEA                            0                 0                  0 * This includes revenue and the fund balance carried forward from the previous year.