The proposed $91 million working budget contains approximately $27 million for operating expenses, up $3.5 million from the preceding year, and $24 million in capital projects.

The cost of the city’s transit system will increase by $831,000 next fiscal year. Commuter rail begins service in October, and SMART will add buses and new routes to meet the trains.

The proposed budget assumes a payroll tax increase from 0.33 percent to 0.5 percent, but this has yet to be approved by City Council.

As part of a plan approved three years ago, the city will increase sewer fees 10 percent starting in November 2008 to help pay for massive improvements to the sewer treatment plant.

Sewer fees will go up by 10 percent again in 2009 and 2010.

Perhaps most significant is what isn’t in the budget. Unlike last year, the city will make no major cuts to library, police and park services, and will not pursue another local option levy.

The budget committee discussed the idea of a parks maintenance fee, which would function like the city’s road maintenance fee, but will not consider it this budget cycle.

The approved budget will now go before the City Council for final adoption. A public hearing is scheduled for Monday, June 2.

Council must act before July 1, when the adopted budget becomes effective.

DETECTIVE RESTORED

The budget passed with one significant amendment.

In a 6-3 vote, budget committee members agreed to restore a city detective position that was cut last year.

The amendment was supported by all four city councilors (Councilor Michelle Ripple was absent) and two of the five citizen members.

The cost of adding the detective is $176,000 per year. This will be taken from general fund contingencies.

For this year’s proposed budget, city staff was recommending a $1.6 million increase in total general fund contingencies — $600,000 in designated and $1 million in undesignated.

“I see this as a knee-jerk reaction,” said committee member Paul Bunn. “This is not well thought out.”

Other committee members were worried about having to cut the detective again next year if Clackamas County increases the cost of contract police services, as city officials fear.

The $3 million contract buys Wilsonville one lieutenant, two sergeants, 12 deputies, one school resource officer, and one community service officer.

The sheriff’s office is currently conducting an audit and the results are expected this month.

This budget cycle, the police contract will increase by 8 percent, or $223,000. Initial word from the county suggests the police contract could increase by as much as 25 percent, or approximately $500,000 per year, as soon as FY2009-10.

Councilor Tim Knapp said bringing back the detective may help in negotiations with the county.

“If we use more unpaid county services, then our contract is more likely to increase,” he said.

Mayor Charlotte Lehan agreed. She added, even if the contract is increased and the city has to cut the detective again, “It is worth doing, even if it is only for one year.”

Without a detective in town, other officers must use their time conducting interviews about cases, and other activities.

The detective would be one of 11 new staff positions added throughout the city, increasing city full time equivalents from 170.06 FTE in 2007 to 181.25 FTE in 2008 (approximately 1 FTE per 1,000 population).

SMART will have 5.5 new full time equivalents and public works will add 1.5. In addition, one part-time intern would be converted to a full-time employee in community development. The balance is made up with added hours to various positions in multiple departments.

Only the detective and a fraction of one FTE would be paid from the general fund.

CAPITAL PROJECTS

As with every year for the last decade, Wilsonville will continue to have a lot of construction and development going on.

This year’s approved budget contains 96 capital improvement projects totaling $26 million, both city and urban renewal.

Nearly half of the budget is taken up by three major projects:

First, $6.3 million this year to complete design work for improvements to the sewer treatment plant. In future years, this project would require approximately $50 million to complete, which will come from a bond sale. Increases in sewer fees and SDCs would be used to repay the debt.

Second, $4.2 million this year for improvements to the Wilsonville Road/Interstate 5 interchange. The project will add two new center lanes, allowing for two left turn lanes for each on-ramp. Future costs will be approximately $11.3 million.

Third, $1.6 million this year to extend Kinsman Road north from Barber to Boeckman roads. This would cover only design work and right-of-way acquisition. Future costs will be approximately $15 million.

The approved budget includes $9.7 million in street projects alone.

The finishing touches to the SMART multi-modal transit center and construction of commuter rail restrooms and a driver breakroom will be completed for $900,000. Altogether these projects cost $2.8 million.