Sabula officials consider using utility surpluses, rate change to cover $130,255 budget shortfall

Sabula officials discussed a $130,255 budget shortfall at a Feb. 4 work session and weighed using utility surpluses, a possible utility rate increase and other measures to close the gap.

City Clerk Lynn Parker told the council the city faces a $130,255 deficit for the year, with projected revenues of $2,050,820 and expenditures of $2,181,075. Utility Clerk Wendy Hoertz presented a chart showing decreased gas consumption, which staff said has contributed to the shortfall.

Council members and staff discussed several options for bridging the deficit. Ideas mentioned included adopting a hotel/motel tax, enforcing infrastructure and maintenance fees for utilities, and, as one staff suggestion put it, restricting use of wood-burning appliances or solar installations to counter falling gas usage. Staff also suggested increasing the utility charge the city assesses customers to $0.550 per MCF.

Mayor Troy Hansen proposed covering part of the shortfall by transferring $50,000 from Gas and Electric funds and $30,000 from the General fund. Council member Mike O’Hara proposed an alternative: use a $100,000 surplus in the Gas fund plus $30,000 from General to avoid raising rates or requiring further department cuts.

No formal decision was recorded on which option the council would pursue; the discussion ended without votes on budget measures. The work session opened and closed by motion: Council member Teena Franzen moved to open the session (seconded by Jim Phillips) and later moved to adjourn (seconded by Mike O’Hara); both motions passed with "all ayes."