PORT ANGELES — Six months into 2011, the city of Port Angeles’ financial situation is looking good, Port Angeles Finance Director Yvonne Ziomkowski told the City Council this week.
If finances stay on track, by Dec. 31, the city will have $862,000 more money in city coffers than was expected, Ziomkowski said Tuesday.
As of June 30, the city had collected nearly $8.9 million, more than half of the city’s $17.6 million estimated revenue for the year.
At the same time, the city spent $8.8 million, less than half of the city’s $18 million budget.
Much of the savings can be attributed to controlling personnel costs, Ziomkowski said.
There is more good news, she added.
Soon to be paid off
Two of three major city loans will be paid off in the next few years. The construction of the Port Angeles Senior Center at 328 E. Seventh St., which was completed in 1994, will be paid off this year. Loans for the senior center construction and additions totaled $2,974,688, Ziomkowski said.
In 2012, the city fire hall at 102 E. Fifth St. also will be paid for, she said. The fire hall was completed in 1997 and re-roofed in 2004. The total financing for the fire hall was $2,774,846.
In four years, payments for the Port Angeles Library at 2210 S. Peabody St., which was completed in 1999, also will be complete. The library was financed for $2,846,634, Ziomkowski said.
Once those are paid off, they city will have less of a drain on resources, she said.
While the city coffers have enjoyed higher revenues and lower expenses than were budgeted for, revenues are still far below 2007 levels, Ziomkowski said. The city’s revenues in 2007 were the highest the city has enjoyed.
Still depressed
Sales tax, investment interest and building and planning permits and fees were the hardest hit by the economy and are still depressed, she said.
“We must adjust to a new normal,” she said.
It will take years to get back to the revenue levels the city enjoyed in 2007, she said.
The second half of the year, the city’s economic situation is expected to continue to slowly improve.
Major challenges in coming months will include increasing personnel costs, the cost of services such as use of the county jail and fuel purchases and an increased demand for services from the public, she said.
In 2012, the city will have to budget for priorities, Ziomkowski said.
Is the city providing the right services in the right way, she asked.
And how much are city residents willing to pay for those services?
The city will conduct budget meetings in preparation for the 2012 budget season.
On Aug. 12, the City Council will finalize 2012 priorities.
On Aug. 30, it will hold a budget workshop to score budget programs.
On Sept. 27, the council is expected to adopt an amended 2011 budget, Ziomkowski said.
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Reporter Arwyn Rice can be reached at 360-417-3535 or at arwyn.rice@peninsuladailynews.com.