Meeting service levels during a pandemic

CHENEY – City officials are predicting some revenue shortfalls in the Public Works Department in 2021, specifically in the building, planning and street departments.

In a budget presentation at the City Council’s Oct. 27 meeting, Public Works Director Todd Ableman also said the system development charge normally instituted to support water and wastewater is low because of a decrease in construction this past year.

“They’re not coming in as what we predicted in 2020, however that’s not part of O&M (operation and maintenance),” he said. “That is part of the reserve fund for growth.”

Expenses for the department’s 12 separate funds is projected at $8,508,100 in 2021, with revenues estimated at $8,252,900. Much of the difference lies in the Building and Planning Department, which is budgeting expenses in 2021 at over $300,000 but anticipating revenues at around $100,000 as construction activity slows down, continuing a trend from 2020 as reflected in a marked drop in permits and inspections.

Differences between revenues and expenses in the Building and Planning Department is made up with revenue from the general fund.

Total valuations of construction projects through Oct. 16, 2020 stood at just over $4.34 million, a considerable drop from 2019’s $32.35 million and even more so from 2018’s $82.375 million – the latter thanks to several large projects. Most of 2020’s valuations have come from residential construction, $2.18 million, and duplex construction, $1.015 million.

Street funds in 2021 are budgeted to $471,000, but $100,000 of that comes in the form of establishment of a reserve fund for the department. Expenses are projected at around $371,000, and Ableman said he doesn’t anticipate any major street projects to be undertaken by the city next year.

The only project on the boards is contingent upon the city being awarded Community Development Block Grant funding, although Ableman said the fund could be negatively impacted if projections for a snowy winter materialize, leading the city to use money to keep roads plowed.

Rates for the department’s enterprise funds — water, wastewater and solid waste — remain stable, Ableman said, which is good news in that water rates increased in 2019 are slowly building back a reserve fund that was almost depleted. The city will be aggressive next year in finding any funding it can to pursue its “shovel-ready” $23.7 million water reuse “purple pipe” project.

“Any grant we can apply for we’ll be tackling that in 2021,” Ableman said.

The city will also be keeping its eyes on disposal costs in the Solid Waste Department, particularly fees at Spokane’s Waste to Energy plant and how those relate to tonnage. Cheney’s annual tonnage has been slowly rising since 2013, and after a slight dip in 2018 to around 6,300 tons rose dramatically in 2019 to almost 7,000 tons.

Additional goals in 2021 include looking at recycling operations, expansion of the city’s yard waste site, update of its solid waste plan, an examination of utility rates and storm water funding and continuation of the hydrant flushing program.

John McCallum can be reached at [email protected].