The Smithville Mayor and Board of Aldermen approved the new $6.2 million budget ordinance on second and final reading during a special meeting Tuesday at city hall.
The new budget totals $6-million 642-thousand 988 dollars. Under the new spending plan, the property tax rate will remain the same at 64.9 cents per $100 of assessed value. The city property tax rate is budgeted to generate $820,000.
Water and sewer rates are to remain the same. City water customers will continue to pay $5.00 per thousand gallons of usage. Rates for customers outside the city limits are $7.50 per thousand gallons. City sewer customers will continue to pay $5.00 per thousand gallons plus the flat usage rate of $3.62.
The rate the city charges the DeKalb Utility District will remain the same at $2.67 per thousand gallons. The city had planned to raise the rate to $3.00 per thousand but was prohibited because of a Chancery Court order from 2014. “The only thing that has changed since the first reading is the DUD rate. We have to keep it at $2.67 per thousand gallons rather than the recommended $3.00 due to the court order from Judge Thurman from a couple of years ago. The way I understand it, we have to present a reason for the rate hike. I have talked with J.R. Wauford (city’s utility engineer) and they are working with us on that,” said City Administrator Hunter Hendrixson.
The new budget includes pay raises for employees, a new sanitation truck, the addition of a new full time officer in the police department to help cut down on overtime, matching funds to replace the Holmes Creek Bridge, street paving including on the public square, new equipment for the fire department, and an upgrade of the waste water treatment plant, among other projects.
Under the new budget, city hourly and salaried employees will get a 3% pay raise except for any police officers who are due to get an increase in pay under the department’s wage scale for all hourly employees. However the police department wage scale, which has been an eight step plan, will stop at six steps hereafter. The last two steps are being eliminated to keep police department salaries from getting too far out of line with other city workers.
In an effort to reduce overtime within the police department, the city is changing the officers shift schedules and creating a new full time officer position. With the new hire, the police department will have fourteen full time members including the chief, captain, one lieutenant/investigator, two sergeants, an investigator, and eight full time officers, plus two clerks.
The budget includes $100,000 in capital outlay to go toward the purchase of a new rescue pumper truck for the fire department. Fire Chief Charlie Parker is asking that the city make this purchase to replace the fire department’s oldest fire truck, a 1992 model, as well as a 20 year old rescue truck and cargo van. While funds will be set aside for a new rescue pumper, the city still plans to apply for a grant through the Upper Cumberland Development District in January. “Of course we’ll have to get specs, advertise, and take sealed bids which will take a little while. Apparently it will take close to a year once the bid is awarded. So this could actually roll into (following budget year 2017-18),” said City Administrator Hendrixson.
“Charlie (Parker) said it could take probably nine to eleven months (before the truck is purchased),” said Alderman and Police and Fire Commissioner Jason Murphy.
The city also intends to purchase a new garbage truck this year. “That is one of the first things we’ll do after the fourth of July holiday. I’ve already got the specs for that. I’ve had to go back and redo it somewhat. I’m still looking at paying for that with a $400,000 CD that we have. We’re making probably less than half a percent for what we’re getting on a return on interest so its not much. When it comes time to award those bids we can discuss that,” said City Administrator Hendrixson.
The city is also increasing its contribution to Justin Potter Library from $500 to $5,000.
General Fund Capital outlay projects for 2016-17 total $692,000 including the following:
*Fire Department equipment- $116,000
*New sanitation truck and trash containers- $350,000 (unspent from 2015-16 year)
*Street Department-Holmes Creek Bridge Project & Unspecified- $60,000
*Police Department Car & Unspecified- $30,000
*New Animal Shelter- $75,000 (unspent from 2015-16 year)
*Airport: Taxiway Initial Design & Unspecified- $20,000 (Mostly funded by grants)
*City Hall Building (Unspecified)- $25,000
*Public Works-Buildings & Grounds (Unspecified)- $5,000
*Parks and Recreation- $5,000
*Financial Administration- $1,000
*Legislative-$5,000
State Street Aid: Paving-$350,000
Water and Sewer projects including the following:
*Sewer Plant Rehabilitation- $2,750,000
*Tube Settlers for Water Plant- $40,000
*Backhoe-$80,000
The city is expected to wrap up the 2015-16 budget year June 30 in the black in both the general fund by $153,724 and water and sewer fund by $76,399.
Total general fund revenues for 2016-17 are projected to be $3,127,010, not enough to cover total estimated expenditures of $3,976,981. The city plans to appropriate $849,971 from the general fund surplus if needed to balance the budget.
The water and sewer fund is expected to show a surplus of $157,925 by years end with total revenues at $2,622,600 and expenditures of $2,464,075. But the 2016-17 water and sewer fund is supported by a $500,000 grant for sewer plant rehabilitation which is counted as income to the city for just one year .
The city will also lose hundreds of thousands of dollars in revenue when the DeKalb Utility District launches its new water plant, which could come before next summer. In the budget the city has reduced projected revenues from the sale of water to the DUD from $765,000 for the year ending June 30, 2016 down to $400,000 for half the year 2016-17. City officials say such a loss of income may eventually force the city to look at ways of cutting spending or raising new revenues to make up the difference.
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