Monticello City Council Balances 2010 Budget
During a work session Monday evening the Monticello City Council painfully plowed through the Fiscal Year 2010 Budget (July 1 2009 through June 30, 2010), presented by City Manager Bob Schwartz, and after many hard decisions finally came up with a draft of a balanced budget.
Mr. Schwartz also presented the mayor and council with a draft of a resolution to adopt the FY2010 budget, which he asked them to please study before the next regular meeting.
A called meeting has been scheduled on Tuesday, June 16 at 7 p.m. for a public hearing on this budget, after which another called meeting will be scheduled to adopt the budget.
Mayor Glenn Newsome opened the meeting by praising Mr. Schwartz for his work on the budget, and said to the council, “This budget is a target. It has increases and decreases, but there are no salary increases or furloughs. It has to balance tonight and it will not be an easy task because we’re starting out over $560,000 in the hole from 2009.”
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After agonizing over the seven page budget for more than two hours, the mayor and council finally balanced the draft budget at approximately $8,462,582, representing a decrease of $485,305 from the FY09 estimated actual expenditures, or a five percent decrease.
The two major increases in revenue included sewer and water. The budget for sewer increase came to $200,000. This is necessary because of a mandate by the Environmental Protection Division (EPD) to make repairs to the city sewer system. If these repairs are not done the city could face daily fines from the EPD. Also, the increase would raise the city’s sewer charges to a level where grants could possibly be received.
The budget for increase in water revenue was originally recommended at $200,000 also, however the council cut this increase back to $100,000 even though this would probably place them at a level below the point which would allow them to apply for grants for water system upgrades.
All salaries, fringe benefits, services and supplies were budgeted the same as the prior budget.
Decreases in the budget included $121,500 in salaries representing leaving the city clerk position open and two potential layoffs.
Other cuts included the Better Home Town Program representing a savings of $31,301, and a $12,694 cut in the Get Ahead House.
Under the General Fund, revenue decreases were budgeted from property taxes, local option sales tax, administrative fees, tax on insurance premiums, alcohol occupation tax, fines and forfeitures, rents and miscellaneous for a total of $92,491.
Prior to the budget session, the mayor and council met with Rod Perry, Sage Edwards and Tracy Trovillo representing the Downtown Development Authority (DDA), to discuss approximately $3,500 in utility fees which the authority was in arrears to the city for, and other financial issues.
The three representatives of the DDA informed the council they had met with the two local banks and had an agreement to refinance their debt at a lower interest rate which would enable them to get current with the city and lower their monthly payments to the banks.
Mayor Newsome thanked them for their service and asked for this plan to be presented in writing to the council at their next regular monthly meeting scheduled for Tuesday, June 9, at 7 :30 p.m.
