Revenues up but costs loom over SeasideSEASIDE – A contribution to the Seaside School District and the impacts of the Trendwest Resorts project distinguish the city’s budget for 2003-04.

The Seaside Budget Committee unanimously approved the document May 20, and the Seaside City Council is scheduled to consider final adoption June 23. The total spending for all funds is nearly $13.3 million.

The general fund of nearly $1.2 million showed the largest departmental increase from last year’s budget, rising 22 percent or $211,000. The committee had opted to spend $200,000 as a one-time contribution to help the Seaside School District, which like other districts has cut its budget dramatically following state budget shortfalls.

“These are not new revenues or unneeded funds,” City Manager Mark Winstanley said Wednesday. “These are coming out of our reserves; we’re spending some of our savings.”

The city had built up reserves and will keep approximately $300,000 – enough to operate the city between the beginning of the fiscal year in July and the time that tax dollars start arriving in November, he said.

School district officials will determine how to use the money, but have indicated the donation probably will go toward facility improvements because the income is not continuous and the costs later would only be higher.

“Hopefully what we’re really doing is saving the taxpayers money” in the long run, Winstanley said. “It’s a proactive approach.”

Resort resourcesAnother distinctive feature of the budget this year is the effect of the Trendwest Resorts complex. The eight-story, 283-unit timeshare condominium near the Turnaround cost roughly $55 million to construct and is scheduled to open next month.

The positive impacts in terms of revenue increases will be at least partially offset by higher demands on city services, Winstanley said. Hundreds more people in town a day will require more police, fire protection and trash collection services, he said.

“Basically, by having Trendwest go on line it’s like having 200 homes added in one year,” Winstanley said. “For a community our size, that’s significant…

“Unfortunately for us, it’s difficult to identify the costs until they arrive.”

While they have been intermittently negotiating details for months, the city staff and Trendwest officials have not yet finalized an agreement about the payment of room taxes. The agreement is expected at the June 23 council meeting, Winstanley said.

Guests at Seaside hotels and similar lodging pay an 8 percent room tax, the revenues of which are used to support police, planning, promotions and other city activity. But a timeshare is not a hotel, so the city and resort officials have been trying to develop an alternate room tax agreement.

For budget purposes the city used a room tax revenue of $350,000 for Trendwest. That amount was listed by its president, Bill Peare, at a meeting with local lodging officials, Winstanley said. “That may be conservative,” he added.

Safety firstThe single largest fund of the city budget is for public safety, which includes lifeguards and the municipal court as well as the police and fire departments. The total of $2.5 million represents an increase of $150,000 or 6 percent.

The police budget of $1.9 million contains no increase in staffing levels beyond the current 17 sworn officers, including the chief. But it reflects cost-of-living increases and a new patrol vehicle.

Postponed building maintenance projects for the police and fire stations were included in the budget this year, at $20,000 each.

Among other highlights:

The only personnel increase was for one employee in the Public Works Department for an emphasis in parks maintenance. Adding all departments, the city has approximately 70 employees;

Anticipated projects which will keep the Community Development Department and other staff members busy in the coming year include continued planning for the possible reconstruction of the Seaside Public Library and work with the Oregon Department of Transportation to improve U.S. Highway 101.

No major capital projects are planned except one funded through the Greater Seaside Urban Renewal District, which is overseen by the Seaside Improvement Commission. That agency plans to replace the west 12th Avenue Bridge, a nine-month project beginning in September, by combining $500,000 in urban renewal funds with ODOT funds of $850,000.

Seaside employees do not belong to the financially troubled Public Employees Retirement System, “so we were able to avoid some pitfalls,” Winstanley said. But the city is not immune from retirement system challenges in the state’s weak economy, he said.

As with other cities, Seaside continues to face double-digit increases in employee health insurance costs. A typical policy that cost $250 18 years ago now runs nearly $1,000.

Other projects this year include the development of a parks system plan which should assist in the evaluation of sites for a skate park, Winstanley said. “With that plan in place I think you’ll get a couple of good site alternatives.”