CHAFFEE SEES DOWNTURN IN BUDGET OUTLOOK

CHAFFEE -- Though Chaffee Mayor Ron Moyers says the recession hasn't yet had a noticeable effect on the city, evidence of the economic downturn showed up in the city budget approved Monday night.

The city will spend over $17,000 more than it takes in in the 1991-92 fiscal year under the estimated budget adopted by the Chaffee City Council at its regular meeting.

"With the economy being in a downturn, that's what the projections look like," Moyers said after the council meeting.

Council members unanimously approved the budget, which was scheduled to take effect Monday. A public hearing on the budget was held March 25, Moyers said.

A copy of the budget shows the city's total estimated revenue as $945,000 and estimated expenditures as $962,057. As such, expenditures would exceed revenues.

Moyers said the city has not seen any effect from the recession and, to the contrary, is bringing in more sales tax revenue than usual this time of year. But he said the revenue estimates were kept low because of what the city keeps hearing from county and state officials. Everyone is talking recession, he said.

"We've never had a problem with our finances as far as a recession," he said. "We've always come through them real well."

The budget shows city insurance costs increasing enormously. The cost of liability insurance under general disbursements nearly tripled, going from $6,000 in the proposed 1990-'91 fiscal year budget to $17,000 in the current budget. Other insurance costs under general disbursements jumped from $12,000 to $21,500.

Group insurance for the city's police force increased from $9,400 to $22,112.

Ward 1 Councilman Jerry Wolsey lauded the work done on the budget. "I think the Finance Committee has done a good job on this budget," he said, "and (so has) the council as a whole."

Along with the budget, the council approved an ordinance for city employee salaries. Under the ordinance, some workers will experience a salary change, while others won't, said City Attorney David Summers.

Adoption of the ordinance came in connection with the budget and is unrelated to an increase in the minimum wage that took effect under federal law Monday, said Moyers.

The ordinance establishes:

A $125 monthly salary for the mayor and a $20 payment for council members per meeting attended.

A $13,500 annual salary for the city collector and city clerk, as well as a payment of $20 per council meeting attended.

A $19,000 annual salary for the chief of police.

A $20,000 annual salary for the city's public works administrator.

In additional action Monday, the council tabled the replacement of the city's current computer system. The matter was tabled for two weeks until city officials can learn more about DTK computers, a possible replacement.

Ward 2 Councilman Ed Gauthier, chairman of the city's computer committee, has recommended the city buy a DTK network system. Gauthier said the IBM-compatible system, with a modem, would cost about $14,360. Meanwhile, an IBM system will cost about $18,080, he said.

Council members held a closed session after their regular meeting.