Regarding expenses, Kleinow termed the city pension contribution “really bad news. That payment for next year ($289,120) is going up approximately $125,000 over last his year.”
The figure hits $428,124 in 2017.
Other annual expense outlooks are:
healthcare costs increase 3.5 percent,
non-salary, non-benefits go up 2 percent,
no wage increases and
some $98,000 is due each year as accrued benefit payouts to retirees.
“We have 14 employees eligible to retire over the next five years,” Kleinow said. “We have to plan for those payouts.”
“Because of actions taken over the last couple of years, knowing that we’re going to be under severe financial stress, we’ve been able to push out the time when our cash flow is zero, for a couple more years,” Dame said.
Although property taxes seem to be rebounding, downward momentum remains.
“If we don’t make significant changes by the fifth year, we won’t have any cash flow,” Dame said. “We’ll be spending what we saved over the next five years. In the fifth year, there won’t be any money left.”