Article published Mar 13, 2008

City dipping into reserves to make up shortfall

By RICHARD ECKE

Tribune Staff Writer

City government plans to dip into its general fund reserves to the tune of $316,000 before the end of the city's budget year to cover unanticipated expenses.

The biggest cost for the city was prompted by the July 5 city takeover of the animal shelter and animal control services from the Humane Society of Cascade County.

Interim City Manager Cheryl Patton said running the animal shelter and performing animal control is expected to cost the city $422,000 in the budget year ending June 30, but the city had budgeted only $115,000. That's the amount the city used to pay the Humane Society to run the shelter and perform animal control services.

Patton, who is usually the assistant city manager, said the city budgeted $115,000 and expects to receive $136,000 in revenue from the sale of dog and cat licenses and other shelter charges, for a total of $251,000.

That will leave the city with extra animal-related expenses of $171,000 to pay beyond the budgeted amount.

City officials say they do not want to run the shelter forever, but want shelter operations to be in fine shape before they return control to a nonprofit organization. City officials contended the society provided poor service. Society backers retorted most of their problems were caused by lack of money given to them under the city's contract.

Patton told city commissioners at an agenda-setting meeting Wednesday that other city departments needing to tap reserves included the Police Department, which will need $75,000 by June 30 to cover increased pay for police officers; $20,000 extra for the city to pay for its November 2007 general city election in addition to the $20,000 already budgeted; and increased costs to recruit a new city manager and pay Helena attorneys to investigate complaints about the shelter.

According to Patton, $30,000 was budgeted to recruit the new manager, but the headhunting consultant alone cost $29,000. She said the city still will need to pay relocation costs for the new city manager, Gregory Doyon, who takes over March 24, and to pay travel and expense costs for all the city manager candidates.

"We need another $30,000," Patton said.

Finally, she said the city will need an another $20,000 to pay the Helena attorneys who last week released a report on the city's operation of the animal shelter.

"We're a little over 15 (thousand) right now" on the shelter review costs, Patton told commissioners. She said the total bill — the main attorneys will bill $165 per hour for their work — is expected to range between $20,000 and $25,000. She said the city budget will need to absorb any costs beyond the $20,000 figure.

Mayor Dona Stebbins indicated it's not easy to anticipate all the city's costs.

"It'd be nice if we had a crystal ball," she told commissioners.

This week's news came just two weeks before city departments are scheduled to make their budget presentations for the new fiscal year. A full slate of meetings is set for March 26 and 27 from 8 a.m. until 12:30 p.m.