Finances discussed

The salary ordinance passed.

The budget hearing saw no comment.

And a former mayor offered some advice on city finances.

Portland City Council focused mostly on financial issues during its meeting Monday.

There was no public comment on the 2025 budget, which is proposed at $10.61 million. That’s up by 10.6% over the 2024 budget of $9.59 million.

The budget calls for $4.77 million in the general fund, up from $4.42 million; $1.39 million in the motor vehicle highway fund, up from $1.31 million; $1.3 million in the insurance surplus non-reverting fund (unchanged) and $569,420 in the park and recreation fund, up from $509,000.

The Council is scheduled to vote on adoption of the 2025 budget at its Oct. 7 meeting.

Also Monday, the council approved the 2025 salary ordinance after a few comments about the proposed increase for the mayor.

As he had at the previous meeting, council member Ron May said he does not believe Mayor Jeff Westlake deserves a raise.

“You knew what it paid coming in and I honestly don’t think you’re deserving of that raise right now,” said May.

Council member Dave Golden responded that the raise under consideration is for the position and is not a referendum on the mayor’s job performance.

The ordinance — it includes 6% raises for all city employees, 8% raises for superintendents, the clerk-treasurer and the mayor, and $100 per year longevity pay capped at 20 years — was then approved by a 6-1 vote with May dissenting. Kent McClung, Matt Goldsworthy, Mike Aker, Michele Brewster, Ashley Hilfiker and Golden voted in favor.

Former two-term mayor Randy Geesaman also spoke to council Monday, saying he sees potential red flags in the financial report that was presented by accounting and consulting firm Baker Tilly of Indianapolis on Aug. 14. (Geesaman lost to Westlake in the 2023 general election.)

Geesaman referenced portions of the Baker Tilly report, including that nine of Portland’s 12 major operating funds have disbursements that exceed receipts for 2024. He noted that without changes, cash reserves will decline.

He encouraged council members to stay informed about proposals expected to come up in the state legislature this year, including property tax relief and the elimination of income tax.

“What are they doing and how is that going to affect us?” he asked. He also noted that State Sen. Travis Holdman, who represents Jay County, is leading the General Assembly’s State and Local Tax Review Task Force.

Geesaman asked council members to look at the city’s finances through a long-term lens and consider revenue options such as increasing the local option income tax (LOIT).

Clerk-treasurer Lori Phillips later noted that while the city has dipped into reserves in some funds this year, many of those funds had shown growth in the previous years.

“Some of those are in the red (this year), but it’s really not as grim as what I thought it sounded like,” she said.

She noted various one-time projects, including the Blaine Pike paving and multi-use path, Meridian Street sewer and downtown building demolitions.

“But yes, we do need to be very mindful on what we’re spending,” Phillips added.

Hilfiker and Westlake also sparred again over city ordinances, with Hilfiker saying he’s hopeful that with the payroll ordinance passed, the council and the mayor can work together. She asked the mayor, “Why do you keep directing city employees to not follow the ordinance?”

Specifically regarding trash, she questioned how the city can justify charging some residents, who are following the rules, a fee to pick up large items while others have their items picked up without paying. She also mentioned a situation regarding city workers mowing a property without having followed proper procedure to notify the owner. She cautioned against possible lawsuits.

Westlake, as he has at previous meetings, said he just wants trash picked up and properties cleaned up.

There was also a back-and-forth regarding the planned hiring of a code enforcement officer. Golden said it would be nice to find common ground, asking if the officer would follow procedure that is in place or be subject to the mayor’s orders.

In other business, council:

•Heard updates on several projects after questions from Golden:

    —The Blaine Pike multi-use path project still needs a few curb ramps to be adjusted and the process to work through the system for a change order regarding specifications that were not correct.

    —Westlake said paving on the Meridian Street (U.S. 27) project is expected to start on the south side of the city on Monday, Sept. 23. He added that the project may go beyond its originally scheduled end date of Oct. 11.

    —The installation of livestreaming equipment has been delayed as Dynamic Business Solutions is waiting for microphones to be delivered.

    —Fiberoptic lines being installed by Utilities One are for Brightspeed, which is expanding service in the area.

•Approved a $9,000 contribution to the Children’s Advocacy Center, which responds to child sex abuse cases. It works with child welfare and the law enforcement system in a united response.

•Heard McClung thanked all those involved in the Tri-State Antique Tractor and Engine Show held last month.