The city has introduced a 2012 budget that totals nearly $16,000 less than in 2011. “Creating an effective budget that spends even less than the past year is an extraordinary accomplishment. We asked departments to under spend in 2011 and to work together to find efficiencies. Their successes add $ up to savings for the city,” said Mayor Jon Costas.
The 2012 budget totals $25.6 million and includes 2 percent raises for employees, the first raises in three years. “Departments are being creatively frugal – doing things like replacing outside services with an inexpensive, used bucket truck and a part-time employee to maintain city lights. We’re working together. When Parks needs a tree removed, they call on Public Works to come in and do the job in-house,” said Bill Oeding, City Administrator.
In addition to creating efficiencies in the overall budget, the city has been able to accumulate nearly $4 million in a rainy day fund. “The rainy day fund actually helps us to save even more as we can borrow from the fund rather than from the Bond Bank, when necessary,” said Sharon Swihart who has served as Clerk Treasurer since 1984. The city has also banked funds in a cumulative capital development (CCD) fund, which makes it possible to make necessary purchases without passing the expense on to taxpayers. Recently this fund helped the police department purchase safety equipment and the building department was able to replace some aging trucks with more efficient models. “In a time when most communities are struggling to pay the bills, Valparaiso has managed to live within its means and build a reassuring savings,” said Costas.