Budget 2018

City Council approves 2018 budget

Dec 12, 2017
Image Courtesy of the City of Homer

The Homer City Council unanimously approved a roughly $22 million dollar budget Monday.

The spending plan is relatively flat compared to 2017. City Manager Katie Koester called it a conservative and cautious approach.

Like other municipalities across the state, Homer’s budget outlook is looking grim. State revenue sharing has declined significantly over the past few years. Sales tax, which accounts for half of the city’s revenue, is also expected to stay flat and 2018’s healthcare premiums spiked about 8 percent.

Courtesy of the City of Homer

The Homer City Council made some adjustments to the 2018 draft budget Monday.

The council approved .5-percent cost of living adjustment for city employees. The Employee Committee initially asked the council for a 1-percent raise, but council member Heath Smith expressed concern over the $90,000 move.

He said it would eliminate a portion of future savings the city gained after voters approved using a road-and-trail-construction fund to pay for road maintenance this fall, which will go into effect in 2019.