Aldermen reviewed an amended $11.2 million budget for fiscal year 2017-18 during a special board meeting Sept. 27.
A public hearing on the budget is scheduled for Tuesday, Oct. 3, according to City Administrator Steve Roth.
“An ordinance to approve the budget and a separate ordinance to approve the salary schedule also are on the Oct. 3 agenda,” Roth said.
The new budget will go into effect upon passage of the ordinance.
“The new salary schedule goes into effect with the pay period commencing Oct. 2, which is provided for in the ordinance,” Roth said.
The spending plan includes a 4.5 percent pay raise for all city employees, with an additional increase for the lowest police department pay from $14.18 per hour to $15, he said.
The amended budget is based on the 2016-17 budget, which ended June 30, 2017.
The proposed budget shows $5,923,130 in total general fund revenue, with $350,765 in unreserved general fund cash for total available revenue of $6,273,895.
The city plans to spend $5,815,798 from the general fund.
Additional funds include $393,572 in tourism taxes, and the city plans to spend $217,761, leaving a balance of $175,811.
The contingency, or rainy day fund, has $1,676,849 available and the city plans to spend $165,000 for the purchase of the Red Cedar Inn building, leaving a balance of $1,511,849.
The city’s capital improvement tax has a reserve balance of $648,966 and officials anticipate revenue in the 2018 fiscal year of $415,750 for a total of $1,064,716 available.
The spending plan calls for $258,480 to pay the loan on the neighborhood improvement district bond (NID) for the city hall expansion and a one-time allocation of $250,000 for street maintenance.
Some $407,547 will cover the cost of the Liberty Field Restroom building, Thornton Road Phase 2 and Highway N Phase 2, leaving a reserve of $122,689.
Roth said the street maintenance allocation is being made possible by the large reserve at the beginning of this budget year, but it’s unlikely that the amount could be allocated to streets in the future.
The three community improvement districts (CIDs) show a combined balance of $654,000, with no expenditures identified for the funds.
Roth said aldermen could identify public projects within the CIDs that could be completed with the funds.
Both the water system and sewer system work independently of the general fund and independently of each other, although funds have been transferred from the sewer system to the water system, Roth noted.
Including a $400,000 transfer from the sewer, the water fund showed revenue of $1,305,300 and expected to spend $1,150,136.
The sewer department anticipates revenue of 2,517,422, combined with a reserve fund of $2,870,135 for total available funds of $5,387,557. Planned sewer department expenditures are $3,140,110, leaving a reserve balance of $2,247,545.
Roth said he acted on the advice of the auditor in transferring funds from the sewer department to the water department, but he feels the city will have to explore the possibility of water rate increases in the future.
The combined funds show a total revenue and reserves of $13.2 million with planned expenditures of $11.2 million, with hefty reserves in the contingency fund, CID funds and sewer department fund.