Ocean Shores Mayor Crystal Dingler has submitted a budget plan for 2018 that includes retaining seven firefighters, a boost in rates paid for emergency medical services, and the hiring of several new positions as the city has built back its finances that were depleted during the recession before she took office in 2011.
“Our city’s outlook remains positive,” the mayor says in her opening remarks to the first draft of the 2018 recommended budget.
She sees signs of new commercial development inside and just outside of the city. “We look forward to Oyhut Bay’s Phase II development program currently in the permitting process. We continue discussions with the Quinault Indian Nation on sewer services for Hogan’s Comer development and the expansion of the Quinault Resort and Casino,” the mayor notes.
“Our Standard & Poors long term rating for limited tax general obligation (GO) refunding bonds is a stable A+ based on our ‘strong budgetary performance.’ Our population has increased noticeably, as housing starts have risen by 139 percent from 33 new single family homes in 2012 to 79 in 2016. This year we have 69 new home starts by the end of August. Home sales have also continued strong in 2017,” Dingler reports in her budget prelude. “We estimate our visitor numbers soared by 32 percent to 4.8 million individuals a year between 2012 and 2016 with lodging tax increasing by 33 percent.”
During the past four year, she notes, the city also was able to pay off 81.7 percent of the interfund loan debts ($2.2 million to $365,565) cited by the state Auditor’s Office in past years, and reduced overall city debt by 27.8 percent (from $54 million to $39 million).
Dingler’s letter accompanying the budget, however, also urges caution looking forward: “Amidst all this good news, our General Fund revenues have increased by only 12 percent (from $5.9 million to $6.6 million) while our uses have risen by 15.5 percent. Many good and useful projects and purchases are cut from this preliminary budget this year in order to maintain our strong budgetary performance.”
To relieve the General Fund, the mayor’s preliminary budget recommends that emergency medical service (EMS) costs previously allocated to the General Fund ($1.17 million in 2016) be entirely funded through the EMS utility and the ratepayers.
That is being done in large part to keep the seven firefighter/EMT positions added two years ago through a two-year federal grant and to comply with suggestions made in a recent EMS rate study. “I am recommending we retain permanently the seven new full-time positions created with the 2016 SAFER Grant to Fire/EMS in 2018. This will result in a significant increase in our EMS Utility fee, but will also relieve the EMS dependency on the general fund as well,” Dingler said.
In an interview Friday, the mayor estimated the EMS action would cause a ratepayer’s monthly bill to go up from $7 to $18 a month, a move that would require City Council approval. She said it would give Ocean Shores the third highest EMS rates in Grays Harbor County, but noted the city is now the third biggest in the county as well.
“We will take this to council and see what they say,” Dingler said.
The city will be requesting an extension of the SAFER grant into April 2018, and Dingler said she has asked new Fire Chief David Bathke “to provide us with a long-term strategic plan for Fire/EMS that provides for improved response times through standards of cover, adequate Fire/EMS personnel for our growing residential and visitor populations and continuing to enhance our all hazards emergency response model.”
She noted that the budget does not include several new fire trucks and other items that the chief initially outlined in his budget request.
Other highlights from the mayor’s budget remarks:
• In the fourth quarter of 2018, the mayor requests the hiring of a marketing director for the Convention Center as recommended by the Pinnacle Report. “This will help provide new events that will result in a more robust year-around economy,” Dingler said.
• In the fourth quarter of 2018, the mayor also suggests hiring a city administration/human resources director as the Chief Appointed Officer (CAO) of the city under the direction of the mayor.
• “We are not recommending any new bank loans this year. Instead, we are ‘banking’ reserve funds for future purchases and maintaining our goal of $1.5 million in General Fund reserves.”
• In mid-year, the mayor also proposes to hire a Facilities and Equipment Manager to oversee building, equipment and vehicle maintenance and replacement, and the proposed budget includes $20,00 for “conceptual planning on a new City Hall.”
• For parks, $50,000 is proposed for remodeling of the North Bay Park restrooms and gravel parking at Damon Point, and $25,000 for a summer program for youth in conjunction with the North Beach School District.
• For the Library, which will be solely funded as a part of the General Fund for the first time in six years, the mayor proposes funds for new materials and programs as well as longer hours. The request also includes funding for a third part-time position as well as a raise for the director.
• Adding a part-time code enforcement officer to allow for “seven-day a week coverage in order to better monitor code violations.”
Budget study session
The City Council will hold an all-day budget study session on Oct. 5 at the Convention Center starting at 9 a.m. with a break for lunch.
