Possible changes coming to Dewey budget process

During its first meeting, seven months through Dewey’s fiscal year, the Dewey Budget and Finance Committee learned the town’s revenues were outpacing expenses by $200,000.

During the committee’s second meeting Dec. 15, members brainstormed changes the town’s accounting process, establishing a capital budget, payroll issues and whether the town should consider indexing some revenue sources to the Consumer Price Index.

For accounting purposes, Dewey currently uses an above-the-line and below-the-line system, with unexpected or one-time costs and revenue going below the line. Committee Chair Dave Davis suggested switching to an accounting style known as generally accepted accounting principles.

Davis said he spoke with Audit Committee Chair Larry Silver in advance of the meeting, and he said Silver said it’s not uncommon for municipalities to use a combination of the two styles of budgeting.

Commissioner Gary Persinger, the town council’s committee liaison, cautioned a change from the current method of accounting. He said he wanted to know how the town is going to be better off if the town is going to spend the money to adjust its budgeting process.

Davis also brought up the idea of the town putting away a substantial amount of money to begin addressing sea level rise. It’s too late for this year’s budget cycle, he said, but it’s something to think about for next year.

Committee member Steve Huse said budgeting based on an employee headcount, and then keeping departments to that headcount, is doable. Huse also suggested indexing certain revenue sources – such parking-related revenues – to the Consumer Price Index. Every town has increased the cost of parking, he said.

Mayor TJ Redefer supported a budget based on headcount. The town has been adopting a budget based on the dollar amount, he said. Now is the time to start counting people too, he said.

Commissioner Paul Bauer suggested the town has no capital budget to buy things, such as new police cars and maintenance equipment.

Committee members agreed the town should at least explore establishing a capital budget, and asked finance director Carolyn Elliott to ask town department heads to come up with a list of items that regularly must be replaced.

Dewey’s fiscal year budget begins April 1. Davis said he hopes town department heads could have a cursory budget prepared by the committee’s Friday, Jan. 12, meeting. He said the goal is for the committee to submit its budget to town council by the end of February.