Finance Department

2011 Annual Budget – Budget and Projects Overview

The current budget year has remained static except for a few major projects that have been undertaken for completion in 2011. Those projects are the Whitman Central Corridor Project, Lift Station #6 Improvements Project, Wastewater Treatment Plant Energy Efficiency Project and the ongoing Eastside Water Improvement Project.

The Whitman Central Corridor Project has a budget of about $2,000,000 which just began construction. The project overview can be viewed here. This project will include improvements in water, sewer, street, storm water and pedestrian infrastructure.

Lift Station #6 Improvement Project is almost completed and had a cost of $273,347. This “temporary” pumping station was originally built in 1968 and has provided excellent service over the years. The station badly needed repairs so the project was planned and completed in 2011. This project has been completed and is online and continuing to providing service to our community.

The newest Wastewater Treatment Plant was placed online in 2001. The prior plant had been built in 1954 and renovated in 1976 and 1983. The strict requirements that regulate the operation of the plant require constant review and updating. Now that the plant is ten years old, not only were the operations but the energy consumption of the plant was reviewed again. The city received a federal grant of $135,000 through the American Recovery and Reinvestment Act to make changes in the plant that would reduce consumption of energy at the plant. There are also local dollars from Pacific Power and Light, Inc. that will help the city with the cost of the project. The total overall cost of the project will be about $600,000 when completed. The energy savings however, will eventually restore any costs that the city has for the project.

As you are well aware, the Eastside Water Improvement Project got its initial start in 2004 when the city began the process of design and requesting financial assistance from the State of Washington. The State provided loans totaling $9,512,509 and the City Council approved another $681,000 in a water related bond for the project. The total of the moneys borrowed is $10,193,509. Except for the bond, the bulk of the financing was at an extremely low interest rate of only 1/2 of 1%. Now that this project is nearing completion in the next few months, the city will have infrastructure in place that will last many years. This has been a long project with many phases of engineering and construction that will provide a safe and efficient use of this valuable resource that the city has.

As of mid year, the city is within budget, has completed other maintenance and repairs throughout the city and provided ongoing services to our residents. What does the future hold? The city expects to remain within its budget for the remainder of 2011. For 2012, the city is beginning the task of beginning that budget process. It is too early to say what 2012 holds in store for our community. Overall, we believe that the administration will hold the line on expenditures as it always has, but it will be a challenge to provide the same levels of services with increasing personnel costs and limited projected growth within the community.