June 20, 2023
By: Dwayne Page
The Smithville Aldermen Monday night, June 26 are scheduled to adopt on second and final reading, during a special called meeting, a budget ordinance for the 2023-24 fiscal year. The action will be taken following a public hearing at 5 p.m. at city hall.
The budget includes funding for four new full-time employees, specifically the addition of a new police officer, fire fighter, and two public works positions.
The city property tax rate will remain at the same level but water and sewer rates are going up again as recommended by Buddy Petty of RateStudies based in Hermitage who recently conducted a rate study for the city to determine what rates should be to keep the water and sewer utility financially solvent as required by the state.
The water and sewer rates, which were increased by 4% last year and 2% the year before, will increase by 3% this year. Tap fees are also being increased by 3%.
Even with the rate hikes, the water and sewer fund is projected to barely show a surplus by the end of the 2023-24 fiscal year on June 30, 2024 at $2,874 if all budgeted expenses are met. Likewise, the general fund is estimated to run close with only a projected surplus of $2,619 by the close of the 2023-24 fiscal year on June 30, 2024. If the city holds the line on spending during the year, the bottom line in both water and sewer and general funds could look better by year’s end but for now, the city’s financial advisor Janice Plemmons Jackson said there was little wiggle room in either fund.
The new rates for city water customers will be $7.94 per thousand gallons of usage (up from the current rate of $7.70 per thousand). Rates for customers outside the city limits will be $11.90 per thousand (up from the current rate of $11.55 per thousand. City sewer customers will pay $7.39 per thousand (up from the current rate of $7.17 per thousand).
The budget projects city metered water sales to be $1,380,720 for the year 2023-24, up from the actual collections of $1,299,151 for the 2021-22 year. Sewer charges are budgeted to bring in $1,133,000 for the year compared to actual collections of $1,057,797 for the year 2021-22. Projected water tap fees are budgeted at $38,000 for 2023-24, down from the actual collections for water tap fees of $74,868 for 2021-22. Sewer tap fees are budgeted at $35,000 for 2023-24, down from actual sewer tap fee collections of $69,636 for 2021-22.
The city property tax rate will remain at 0.7523 cents per $100 of assessed value which is expected to generate $1,355,000 which is not much growth from the 2021-22 fiscal year which ended on June 30, 2022 with $1,312,363 (actual) property tax collections. The city is projected to end the current fiscal year (2022-23) on June 30 with $1,350,000 in property taxes.
According to the budget, the city general fund is projected to finish the 2022-23 year with a surplus of $21,660 on June 30, 2023 but only $2,619 at the end of the 2023-24 fiscal year on June 30, 2024. The city ended the year 2021-22 with a surplus in the general fund for the year of $218,774 (actual). The water and sewer fund is expected to finish the 2022-23 year in the black by $67,455 on June 30, 2023 but projected to show a surplus of only $2,874 at the end of the 2023-24 fiscal year on June 30, 2024 after making allowances for various factors including grants and depreciation. For the year 2021-22, the city ended with a surplus of $143,747 (actual) for the year in the water and sewer fund.
In addition to adding employees, the city has identified other projects in the budget for which funds have been allocated for the 2023-24 year.
City employees will get a 3% pay raise in addition to whatever step increase they may be entitled to receive on the city’s wage scale. Pay will be increased for lifeguards and part time pro shop workers at the swimming pool and golf course from $10.00 to $12.00 per hour. The pool was unable to open this year due to a lack of lifeguards. Public Works Department employees with Commercial Driver Licenses (CDLs) will get a one dollar per hour increase in pay.
A total of $30,000 has been budgeted ($20,000 new money) for consultant expense as the city makes plans to hire someone to succeed longtime Certified Municipal Financial Officer Janice Plemmons-Jackson who will soon be retiring. This money will be to train her successor if needed. The new CMFO will be paid $65,000 per year once he takes over.
The Smithville-DeKalb County Chamber of Commerce will receive more money from the city. The allocation to this non-profit will go from $15,000 to $25,000.
The new budget also includes the following:
*The addition of a fourth paid full-time firefighter (budgeted salary $36,342 plus benefits)
*The addition of another full-time police officer (budgeted salary $41,056 plus benefits)
*The creation of a new public works city maintenance position. (Budgeted salary $44,109 plus benefits)
*The addition of a new public works “floater” position to be filled by someone cross trained to fill in as needed in various city departments ($44,109 plus benefits).
*Tire changer ($10,000- carry over from current year) for the public works department.
*Police department-one patrol car and related equipment ($52,700) and two radar speed indicator signs ($6,200)
*Street paving ($150,000)
*New irrigation system at Golf Course ($191,400)
*The purchase of 100 new replacement trash cans for sanitation department ($8,000)
*Security cameras at Green Brook Park ($20,000)
*Fire department- portable radios ($5,000), extra fire hose & equipment ($12,000), outfitting 2022 pickup truck ($2,500), site work for training site ($10,000), fire hydrants ($40,000)
*New jet washer on Ford F-550 diesel chassis ($256,156) funded by the city’s water/sewer fund ($128,078) and street department ($128,078).
The General Fund Debt Service for the new police department building is projected to be $167,500 for the year including $100,000 in principal payments and $67,550 in interest on long-term debt.
Ending cash by June 30, 2023 in the general fund is estimated to be $6,470,563 and $6,976,763 in the water and sewer fund.