Williams council will review finances over next decade

The Williams City Council will gaze into the future Wednesday night, hoping to get a glimpse at what the city's finances might look like over the next decade.

"It is absolutely necessary that we are on the right path and not passing on problems to the next generation. The next City Council should have a reasonable expectation of having some financial stability," Mayor John Troughton Jr. said.

He believes the lack of planning is why other cities, counties and most certainly the state and federal governments are struggling financially.

"We need to make sure our expenditures match up with our revenues."

To that end, city officials also will be using the meeting to launch its campaign to continue a half-cent sales tax increase that the voters approved in 2007 and will be asked to approve again come November.

The tax expires in April 2013.

City Administrator Chuck Bergson said it represents $400,000 annually to the city's coffers, and is largely paid for by visitors to the city.

"It primarily applies to commuters and visitors to the city," Bergson said. "We live off the freeway."

Troughton agrees.

He believes maintaining the sales tax rate at 7.75 percent will have the least impact on residents.

"I think for the local people, it is the least intrusive tax," the mayor said.

Moreover, Troughton said the reason the city needed the increase from 7.25 percent in the first place is the same reason it needs to continue it.

"It was to maintain the services of the police, fire and public works, and it is the same thing now," Troughton said.

The mayor thinks the citizens will be supportive, but he and Bergson are concerned with the possible fallout from what everyone expects to be a statewide sales tax initiative on the same ballot.

"What I am worried about is the governor is putting on (the ballot) his own tax proposal, so there could be a backlash against government, and that is my concern," Bergson said.

The city administrator said it could be residents will just vote 'no' on everything.

Troughton said that is why this financial review is so critical — so the people of Williams can see what the city is facing over the next 10 years.

In addition to the sales tax proposal and other general fund issues, the council also will review the water and sewer enterprise funds, what. if any. need there will be for rate increases, and the overall need to reduce debt payments on all fronts.

Bergson said it is a certainty some kind of rate increase will be necessary over the next 10 years, so it is more of an issue of how to manage those increases.

The mayor said unless there is some kind of economic boon for the city, it is going to be a balancing act between expenditures and revenues, whether that is in the enterprise funds or in the general fund.

"The cost of everything is going up every year whether we like it or not," Troughton said, "and we either have to (raise revenues) or cut services."

The review is the only item on the agenda, except for a video presentation on meeting procedures and related matters designed to help the council conduct its business properly.