Get Your Daily Dose of News

---

Mayor John McArdle, who occupied that elected position during a period in which the city engaged in interfund loans, was asked about this year’s budget, which necessitated deep cuts. Though the past years of frequent interfund transfers were cited as an approach the city needed to abandon by City Manager Kenna West, the mayor didn’t identify those past practices as the culprit for this year’s severe budget trimming. The underlying cause is from two historic ballot measures – known as “five” and fifty” – which curbed property-tax revenue in a way that is being felt dramatically. West, who implemented a new “best-practices” approach that halted interfund transfers of money among city funds, has said it will take years for the city to regain solid financial footing.

Past financial practices by Independence have reduced the ability to clinch some federal loans, as well as lessened the opportunity to utilize certain bonds, according to City Manager Kenna West, who attributed the reason to a record of interfund transfers over past years. Budget committee members passed a budget of more than $37 million for the coming fiscal year, but three of the 14 members on it voted against approval. Public Works Director Gerald Fisher had announced that the city was unable to secure a lower-cost loan from the USDA several years ago, due to the history of interfund loans; Instead, a loan from the Oregon DEQ was obtained. City Manager West explained that bond debt had ticked up to 2.66% with a ceiling a 3%, making further reliance on bonds more problematic.

The main budgetary account to pay for operations in Independence, the general fund, isn’t healthy and personnel cuts are needed to move toward sustainability, including two library assistants that will mean the library will no longer be open on Saturdays. Independence City Manager Kenna West, who has been on the job less than a year, is instituting a “best-practices” approach that will stop interfund loan transfers from one fund, such as public works, to shore up shortages in another. Though the preventive steps were seen as important by members of the budget committee, some who served on the committee expressed disapproval with the “cold turkey” strategy, and favored tapering off instead from reliance on interfund loans. city manager of Independence.