CANNON BEACH - The Cannon Beach City Council adopted the 2004-05 city budget at Tuesday's special meeting.
The budget reflects rising costs and necessary capital improvements, including major updates to the wastewater treatment plant and other public works projects, City Manager Peggy Coats said. The total for all funds is $12.4 million, with the addition of $300,000 in carried-over unexpended funds from fiscal year 2003-04. The general fund total is $3.4 million.
"I think it's a solid budget," Mayor Dave Rouse said. "Staff have worked hard to keep the budget within reason. In general, I'm quite satisfied."
The council approved three-year union contracts, which includes an 1.8 percent cost-of-living increase. The city is anticipating an 18 to 20 percent increase in health insurance rates.
The proposed police budget is $919,883, which includes police, lifesaving and 9-1-1 dispatch. The city plans to purchase a $32,000 four-wheel drive patrol vehicle as part of its five-year vehicle replacement plan and a $5,000 all-terrain vehicle for lifeguard use.
The community programs budget of $224,038 supports the Haystack Rock Awareness Program, community grants and the city's contract with the Chamber of Commerce to run the visitor's information center, Coats said.
To balance the budget, the city plans to use approximately $150,000 of its transient lodging reserve fund to cover operating and capital costs. That will leave a balance of approximately $335,000 to cover emergency and unexpected expenses. Room tax is expected to generate $1.58 million this budget cycle, Coats said.