Angered by reports that Coos Bay's budget struggles continue after several years of layoffs and attrition, Mayor Joe Benetti stressed this week that he believes the city has grabbed a foot-hold on its financial situation.

Addressing the council and audience during the first meeting of the year, Benetti said he believes it is a misconception that the city is in dire financial straits. With revenues now meeting expenses due to reductions in staff and services, Benetti offered a differing view on the city budget.

"We are well off," he said. "Our carryover is up. Those tough decisions have paid off."

As one example of the city's financial health, Benetti said Coos Bay has been buying police cars rather than leasing them, a move that might be prompted by lower revenues.

In addition, Benetti said he felt the city wasn't getting enough recognition for having several million dollars in assets in timber revenues at the Coos Bay-North Bend Water Board. Finally, Benetti said most people don't realize that the city still has two healthy Urban Renewal districts in Empire and downtown Coos Bay.

"Those keep getting overlooked," Benetti said. "Those are substantial assets but don't get in the picture."

Coos Bay has reached a critical junction in its finances.

After restructuring city departments a year ago, there have been signs of recovery. The city committed to hiring two new police officers late last year. The move came with assurances that the jobs could be retained and the new hires would not simply face a new round of layoffs.

In November, Coos Bay also negotiated 5-percent pay increases to police and other city personnel. Those were significant because employees represented by the American Federation of State, County, and Municipal Employees already had agreed to forego their guaranteed 2-percent pay raises a year earlier in order to save jobs.

Still, the signs of the city's budget struggles also remain evident. Coos Bay City Hall, for example, remains closed to the public until 10 a.m., a move approved by the council the past January in order to allow the remaining employees to do administrative work uninterrupted by the public.

At a recent council meeting, Coos Bay Police Chief Eura Washburn reported that her department was handling large case loads even as its staff size diminished.

Hit hard by a round of budget cuts, layoffs and retirements, a department that a year ago employed 28 people now has 21. It has no captain, no detective sergeants, no lieutenants and only one office staffer. The department employs two detectives, including one nearing retirement, and a single school resource officer.

Councilor Roger Gould said he interpreted Benetti's remarks to mean the city is in sound financial shape as opposed to wealthy.

"I would choose to say we are financially stable," Gould said. "In other words, we're living within our means."

While Gould said he believes the city should provide more services, he added that changing that is up to citizens, not the council.

"Personally, I would like to be able to see us provide more service but it takes more revenue to do that," Gould said. "That is a decision that can only be made by the citizens to whom the service is rendered. It seems that I'm not hearing much in the way of displeasure with what's going on with the administration of Coos Bay."

Finance Director Janell Howard also offered a more optimistic outlook for the future of Coos Bay's finances. Howard said the city's budgeting decisions have put it in a currently healthy fiscal position.

Coos Bay has not needed to borrow money in order to pay bills from the difficult period from the beginning of the fiscal year to November, when property taxes are collected.

In addition, Howard said the city has built up $1 million in reserve funds to handle the difficult transition period next year. Howard said city staff are beginning to work on the upcoming year's budget and also are working to audit the current year.

Howard concluded that the city's decisions to hold down expenses are responsible for having stabilized the budget slide and that she feels the city is in a comfortable position.

And, both Howard and Councilor Jeff McKeown expressed optimism for the city's future budgets would continue to stay on the positive side.

"Now, with the economy improving, the potential for surprise is on the upside," he said.