SALEM Increased costs contribute to bigger budget

About $200,000 is set aside for parks improvements next year.
By NORMAN LEIGH
VINDICATOR SALEM BUREAU
SALEM -- The city's 2003 budget calls for about $4.7 million in general fund spending, a nearly 2 percent increase over this year's amount.
City council met in special session Monday and adopted the budget.
City officials have attributed the increase over last year's spending largely to boosts in wage and benefit costs for city employees.
The city spent about $720,000 this year for health insurance. That amount is expected to increase by about 12 percent in 2003.
The 2003 budget earmarks about $1 million for the fire department, which has spent about $850,000 this year.
The 2003 increase is largely to cover pay and benefit boosts and an anticipated need to spend more on gasoline for firetrucks.
The police department's budget is set at about $1.5 million. The department spent about $1.3 million in 2002.
It's expected to need more money in 2003 to cover wage and benefit increases, city officials said.
Other 2003 general fund budget allocations, with the 2002 budget amount in parentheses, include: housing, planning and zoning, $110,339 ($101,036); mayor's office, $74,194 ($92,400); auditor's office, $168,442 ($166,750); and service director's office, $91,313 ($88,027).
Capital improvements
The 2003 spending plan includes a $907,500 allocation for capital improvements. The capital improvements funding is not part of the general fund, which largely covers city departments.
In 2002, the city spent about $1 million on capital improvements, which included spending associated with improvements to East State Street where it passes through a commercial district.
The 2003 capital improvements budget includes $45,000 to buy two new police cars and $185,000 to make parks improvements.
Overall, the city's 2003 budget totals about $24.6 million. That includes the general fund, capital improvements fund and other funds such as the police and fire pension funds, bond retirement fund and economic development project fund.