Fuel costs a factor in Nederland budget

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July 15, 2008

Anonymous The Port Arthur News Tue Jul 15, 2008, 06:43 PM CDT

NEDERLAND — By Mary Meaux

The News staff writer

NEDERLAND — Just as a homeowner balances a checkbook, pays bills and even anticipates unexpected expenditures, so does the city of Nederland.

And as fuel costs put a crunch on many a pocketbook, fuel costs are putting a bind on the city of Nederland’s projected $20.4 million budget.

Mayor Dick Nugent named a number of challenges the city is facing at budget time including fuel, cost of living, insurance and chemicals for the water treatment plant.

Fuel costs throughout all departments in the general fund show an increase of $49,600 or 62.5 percent while budgeted funding for fuel costs in all departments in the water and sewer fund has increased by $24,500 or 69.2 percent.

“Everything is going up because of the oil industry,” Nugent said. “Almost everything we do, as a city, is based on oil.”

Nugent realizes the cost of living hike affects not only the city but the citizens and employees.

“We are cinching up the budget tighter and tighter because we do not want to raise taxes,” he said.

Cheryl Dowden, interim city manager/finance director said another challenge in compiling the budget comes from an increase in chemicals for water treatment, to the tune of $15,000, which is due to current market conditions. Lab testing in water treatment reflects an increase of $30,000 in order to comply with mandated state and federal requirements.

To offset some of the rising costs, the proposed budget includes an increase in sewer rates in the amount of 25 cents per 1,000 gallons of consumption, though this does not apply to the minimum charge. Dowden anticipates this increase will generate $125,000 in revenue.

Dowden said based on information received from the Jefferson County Appraisal District, “it appears there will be a substantial increase in taxable values.” The tax roll is scheduled to be certified on or before July 31 and at that time it will be possible to propose a tax rate for the 2008-2009 fiscal year.

Nugent said the bottom line is the city is fighting vigorously to monitor the tax rate and maintain the quality of life in the city.

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Fuel costs a factor in Nederland budget

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