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Officials to trim fat on already lean budget |
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Wednesday, 20 August 2008 |
By KELLY DANIELS
Starkville Daily News
An ever-draining national economy has squeezed the City of Starkville’s financial coffers to the last drop.
And extracted annual budget came as no surprise to officials during Tuesday’s meeting of Mayor Camp and the Board of Aldermen.
The city’s budget is balanced with a $14.74 million general fund, Ward 5 Alderman and Budget Chair Matt Cox reported.
Previous reports warned of a possible $290,000 shortfall.
However, a balance came with several cutbacks, including a 1 percent trim of operational costs throughout each city department, including sanitation, water works, fire and police.
“There was no cost of living increase,” reported Cox, referring to employee salaries.
“We brought in no new personnel, and we’re purchasing no new vehicles.”
Cox also reported that the city would give no increase in donations to outside services such as the American Red Cross.
“This was a hard decision to make,” he said.
“But we have a very lean budget this year.”
And the reason for this lean budget could be a decline in ad valorem taxes.
“We typically see ad valorem tax revenue increase from 5 to 10 percent,” he said.
Other reasons for a lean year were state mandated increases in retirement pay and in workers compensation.
Sales tax revenue went up two percent, a conservative estimate according to Cox’s reports.
The new 2008-09 budget year begins on Oct. 1.
Pressing needs
To top of budgetary concerns, officials also dealt with road concerns and lack of money for maintenance.
Starkville spends about $500,000 to maintain roads, but City Engineer Edward Kemp says that amount is not enough.
For this coming budget year, the city is $500,000 in debt for streets while also paying directly out of its pockets the usual $500,000 for maintenance.
Kemp has drafted plans for a long-range road program, suggesting that the city put aside at least $1.6 million for infrastructure improvements.
Kemp’s plan intends for major collector roads, such as South Montgomery Street and Old West Point Road, to be maintained every 10 years.
Minor collectors, such as Gillespie Street, would be maintained every 12 years, while local roads, which are small neighborhood roads, would be maintained every 15 years.
“No traffic surveys were done. This is just for budgetary purposes,” said Kemp.
The funds needed for these upgrades could rise or fall depending on the fluctuating cost of asphalt.
An estimation of $1.4 million was made as a cost for this maintenance, while was set aside for $50,000 for sidewalk improvements and $100,000 for drainage.
“We’re way short of the moneys we need,” said Mayor Dan Camp after Kemp’s presentation.
“Unless we get out of this debt cycle, we’ll be handling basic city business on credit,” said Ward 4 Alderman Richard Corey. “It’s not a long-term solution.”
Discussing tax hikes
In a public budget hearing Tuesday night, three citizens addressed the Board of Aldermen about a proposal to increase ad valorem taxes. A vote on a tax increase would take place following the next public hearing on Sept. 2 and prior to final approval of the 2008-2009 fiscal year budget.
The city can bring in 3.85 more mills for a total of 20 mills, which would generate an additional $654,000 in revenue for the general fund.
Milo Burnham, who supported a tax increase, bemoaned the city’s “flat budget,” as not being reflective of a growing city.
“It is a budget of a city that is beginning to pull in,” he said, using the city’s perpetual borrowing as an example. “I call it as a having a hungry dog where you cut off its tail and feed it back to it.”
Stating that the city is in a desperate situation, Burnham urged officials to put aside concerns for re-election and vote to raise taxes.
“We need that extra $650,000,” he said.
Dorothy Isaac, a member of the city’s Parks and Recreation Commission, disagreed.
“I will not support an increase in taxes, and I hope you won’t support putting this on the citizens,” she said.
Isaac said that while rich people may not mind paying more taxes, the poor were going through hard times.
Beautification Committee chair Richard Mullenax spoke in response to Isaac.
“It’s been 20 years since our ad valorem taxes went up,” he said. “Move to a real town and see what kind of taxes you pay.”
Executive session
After coming out of a closed executive session, the Board of Aldermen:
• Voted to proceed with a purchase of the Old West Point Road Water Association.
• Gave Public Services Director Doug Devlin the authority to research other appraisers for the Rockhill Sewer Project easements if appraisals by Stewart Stafford are not completed by this coming Monday.
• Approved the purchase of a 2,310 square foot property on 121 D.L. Conner Drive. This is the first purchase of property intended to be part of a future municipal complex.
Editor’s note: Due to deadline constraints for today’s edition, a follow-up story on other business handled by the Board of Aldermen will be published in Thursday’s edition of the Starkville Daily News.
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Last Updated ( Thursday, 21 August 2008 )
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