The Smithville Board of Mayor and Aldermen Monday night approved on first reading the new 2016-17 budget ordinance on first reading.
The vote was 3-0. Aldermen Shawn Jacobs, Josh Miller, and Gayla Hendrix were present. Aldermen Danny Washer and Jason Murphy were absent. Second and final reading action will come at a special meeting on Tuesday, June 28 at city hall.
The new budget totals $6-million 608-thousand 981 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 increase from $2.67 per thousand gallons to $3.00 per thousand gallons.
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.
*Other interesting facts:
According to the budget the city is projected to take in a total of $2,303,160 in local tax dollars in 2016-17 including:
Property Taxes- $820,000
Wholesale Alcoholic Beverage Taxes-$230,000
Wholesale Liquor Tax-$80,000
Interest, Penalty & Costs on Property Taxes-$5,000
Payments In Lieu of Taxes-$60,000
Local Option Sales Taxes-$980,000
Business Taxes-$75,000
TVA Payment In Lieu of Taxes-$53,160
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