This article was in Thursday’s (May 24th, 2018) Herald and News

Written By: Sean Bassinger, H&N Staff Reporter 

The continued effects of state retirement benefits, the need for street repair projects and addressing staff shortages were all key points addressed at this year’s Klamath Falls budget hearings.

Klamath Falls City Council and the budget committee approved a budget of $68.7 million following Tuesday’s meetings at City Hall. With the exception of one city councilor who had concerns about the airport’s future, all city council and budget committee members voted to pass the city’s current budget with no major changes.

Those at the hearing also touched on the future of the Ella Redkey Pool, in-house software advancements, upgrades to the Spring Street wastewater treatment plant and how to account for continued staff shortages.

City Manager Nathan Cherpeski said the city would look into hiring part-time employees to help reduce costs often associated with health insurance and the Public Employee Retirement System (PERS).

“We’ve never done that before,” Cherpeski said of part-time staffing.

Last year’s budget came out at $60 million and had a similar emphasis on adjusting for PERS increases and construction on the wastewater treatment plant.

The rundown

In his yearly budget message, Cherpeski outlines three major goals to help with city issues across the board.

This includes making sure residents feel safe and secure, improving economic and community prospects and the city’s overall customer service.

Nearly half of the budget, about $30 million, covers the city’s general fund to pay for administrative costs, municipal court functions, public works projects, police and other vital city functions.

Another $29 million is going toward the wastewater funds, which accounts for a three-year upgrade currently in the works at the plant. Other major capital projects, which includes roadwork and street repair, account for nearly $14 million of the city’s budget.

At the hearing and in his report, Cherpeski mentions that the city could switch to biannual budget models in the future. This would mean that Klamath Falls would hold major budget hearings and designate expenses every other year as opposed to annually.

“I know the finance staff is very interested in looking at it,” Cherpeski said.

No one disputed the possibility, with some councilors saying they supported the decision if it made things easier for all parties involved.

“I think that would be very beneficial for the city,” said Councilor Dan Tofell.

Rising staff costs

Cherpeski touched on the continued need to address staff shortages Tuesday. His report states that the city has had 13 fewer staff since 2008.

National spikes in healthcare package costs has presented a problem, which is one reason the city is considering more part-time assistance to reduce staff burden but still keep costs lower. The continued rise in PERS costs is another contributing factor, which could increase anywhere between $570,000 and $600,000 in 2019.

“This is an issue not only for us but for the entire state.” Cherpeski said Tuesday.

The city is also short a planning manager and city attorney following the departure of former City Attorney Johanna Lyons-Antley and former Planning Manager Erik Nobel earlier this year.

Joe Wall currently serves as planning manager at city council meetings, while Rick Whitlock provides legal counsel for the city.

Job descriptions for a new city attorney went out across city social media accounts Wednesday.

Trying for commercial air service

City councilors and budget committee members also discussed the future of the Crater Lake-Klamath Regional Airport and Ella Redkey Pool, two city-owned properties that have continued to spotlight meetings and budget hearings for the past two years.

The city estimates it will need $7.8 million for the airport during this fiscal year, while the Ella Redkey Pool costs $441,850 to maintain.

Earlier in the hearing, Councilman Bill Adams said he felt that money going toward the airport was being inappropriately spent “for the amount of passenger transportation that goes out there.”

Klamath Falls lost air service in 2015 and heard from SkyWest Airlines that air service could be returned in 2019 but not 2018. Airport officials also have meetings set with United Airlines at their Chicago headquarters in June.

The main terminal building remains open due to business from rental car providers and an upstairs restaurant, but Adams still questioned the need.

“I don’t believe that it’s going to happen,” Adams said. “I’d just assume not to see a red mark next year for their goal outcomes.”

Pool talks return

The Ella Redkey Pool faces its own set of challenges: the pool does not bring in enough revenue to cover costs and recently had its previous manager, Maria Rodriguez, resign to pursue other opportunities. The city is looking to fill the position, which would now fall under “support services” instead of parks.

Cherpeski said the city would likely consider any possible changes in the future, whether it means closing the pool for certain parts of the year or adjusting hours. Grants have also been an option that continue to benefit the pool.

“A lot of the capital that they’ve been doing lately has been grant-funded, so we have to continue to explore those kinds of ideas,” Cherpeski said.

Budget committee member Mike Angeli had another suggestion: consider exploring ways to combine the pool with the area’s geothermal resources, which could make for a more unique asset and tourism grab for the city.

“I think we’re looking at this all wrong,” Angeli said. “We should be looking into private entities to be stepping in and invest in this.”

The city will officially adopt this fiscal year’s budget on June 18, in addition to notices and summaries being sent to the Herald and News.

To read this article and others on the Herald and News website, please refer to the following link: 

Klamath Falls Approves $68M Budget for Upcoming Year (H&N)