Sumner revenues still low at mid-point

Halfway through the calendar year, Sumner is working to maintain services amidst a strained budget.

Halfway through the calendar year, Sumner is working to maintain services amidst a strained budget.

While sales tax revenue continues to be lower than usual, it is slightly higher than last year, City Administrator Diane Supler said.

“It’s increased slightly but at 60 percent of what we originally budgeted for,” she added.

The lack of revenue falls short of the expected revenue on which the budget is based.

“We build our budget around expectations,” Supler explained.

The decrease in revenue and the slump in the economy means fewer projects on the horizon.

“We still haven’t seen a lot of activity in permitting or planning,” she said.

Sumner did receive a permit for the construction of a new residential home. Compared to other nearby cities, Sumner doesn’t receive many new homes construction permits.

Some good bad news is while sales tax revenue is still down, it is not as low as last year, but Sumner may not see the benefit for a while.

“It will take some time for it to trickle through to us,” Supler said.

To keep the budget lean, Sumner continues to hold about 10 positions vacant.

“Some have been vacant for over a year,” Supler said.

The city is looking at whether its utility funds are being supported by revenues.

At a study session July 12, council examined the reports of the water, wastewater and stormwater funds. Based on figures, the stormwater system is covering its operating costs with the rates being paid, but the other two funds are not.

“We’re going to continue the discussion for the utility rates next year to see if there are ways to reduce the impact to rate payers,” Supler said.

The council is looking at other ways to implement the rate increases.

Due to more rainfall than usual, people didn’t water their lawns or gardens as much as usual, which means less revenue from the water bills.

Supler said the city will need to raise the cost is some way.

“We’ll have to have some kind of rate increase,“ she said.