The Washington City Council passed the 2009 budget without any changes at their meeting Monday evening, planning to make more cuts in the spring after the state reviews the budget.

Mayor Larry Haag opened the discussion asking the council to plan a special meeting to discuss and tweak the budget because changes in the property tax law are confusing. He also wanted to clarify that the proposed 3 percent raise for all city employees will cost $80,278, not $216,000 as was mentioned at the last council meeting.

Under prompting from council members Joe Fleck, Art Biddinger and Tom Baumert, the council decided instead to pass the budget as it was so the state will approve as much money as possible. After they get the budget back from the state, most likely in May, said Biddinger, they will have 10 days to review the budget again and make any cuts necessary.

It will be easier to make the cuts in the spring said the three councilmen and Clerk-Treasurer Elaine Wellman, because then the council will know exactly how much money they will lose to property tax cuts.

Accordingly, the council read and approved the compensation ordinance and heard first readings on ordinances to fix compensation for city employees and police and fire employees, and to set the tax rate.

Electric rates

Utility Office Manager Anita Ash presented the Board of Public Works with a proposal for a rate study and accounting training in the utility department.

She said she had been hearing at Indiana Municipal Power Agency meetings that energy costs will increase 20 to 50 percent in the near future. However, the city’s electric rates have not been increased in 20 years.

According to an IMPA report, Washington’s residential electric rate is one of the lowest of IMPA members.

In July, the city paid 5.55 cents per kilowatt to purchase electricity and charged customers about 7 cents per kilowatt. That gave the department $221,000 to operate for that month, said Ash. But because the department does not have a budget, she could not say whether they were breaking even or losing money.

Haag pointed out the Utility Department’s books had not been balanced for 18 months when he took office. Internal audits saved the department thousands of dollars, a total of $253,100 across utility and trash departments.

Ash proposed hiring Umbaugh Associates to conduct a rate study for $12,000 to $15,000. She also proposed hiring a consultant from American Public Power Association for $7,000 to train city employees including the mayor, department heads and the Utility Department’s internal accounting employees in utility accounting.

The BPW approved these suggestions.

In other business

ANIMAL CONTROL