The city of Cannon Beachs proposed total budget for fiscal year 2014-15 $13,228,377 represents a 3.8 percent decrease over last year, City Manager Rich Mays said at Wednesdays Budget Committee meeting, the first of several budget meetings scheduled to take place in late May through mid-June.
The numbers, however, can be a bit misleading.
This decrease primarily relates to the timber thinning project that took place during the current fiscal year and will not occur next year, Mays wrote in his annual budget message.
The city has also recently contracted out two of its full-time employee positions the finance director and building official which brought down its personnel budget and resulted in a 5.7 decrease in citywide personal service expenditures.
However, the city may request additional personnel at future budget meetings.
City operations are not expected to expand beyond current fiscal year levels, he wrote.
The citys projected general fund budget for the next fiscal year totals $3,874,000, $511,210 of which comes from the citys property taxes.
Based on historical receipts over the last five years and other information, the city projects that Cannon Beachs property tax revenues will increase by an average of 3 percent each year. In addition, transient room taxes are projected to increase 5.2 percent over the current fiscal years budgeted amounts.