June 17, 2021
By: Dwayne Page
The Smithville Mayor and Aldermen will meet in special session tonight (Thursday) to adopt the 2021-22 budget ordinance on second and final reading.
The meeting will be at 6 p.m. at city hall. Also on the agenda is the transfer of city employee Megan Moore from one department to another. Moore has served as Director of the Animal Shelter. She will be transferring from that position to another at city hall.
If approved the new budget will take effect July 1.
The new city spending plan includes a 2% increase in water and sewer rates and tap fees.
City water customers currently pay $7.25 per thousand gallons of usage. That will go to $7.40 per thousand. Rates for customers outside the city limits will increase from $10.88 to $11.10 per thousand. City sewer customers pay $6.75 per thousand gallons. That will jump to $6.89 per thousand. The new rates are expected to generate up to $50,000 a year in new revenue.
City officials believe its wiser to implement smaller rate increases now rather than larger hikes later to keep incoming revenues ahead of expenses and that is also the recommendation of the state comptroller. A year ago, the city’s water and sewer fund was projected to end the current fiscal year June 30, 2021 in the red by $37,713 but by keeping a close eye on spending the city is now expected show a surplus of $142,631 by the close of this month. This time next year with the rate increases included, the water and sewer fund is forecast to be in the black by $56,535.
Under state law, if a utility continues to operate at a loss for more than two years and doesn’t address it, the state has the authority to force rate increases to make it solvent.
The city property tax rate will drop from 0.899 cents to the new certified tax rate levied by the state of 0.7523 cents per $100 of assessed value to offset new reappraisal property assessments. Although the new certified tax rate is to generate about the same amount of local property tax revenue as this past year, the city is projecting $1,274,471 in property tax collections in 2021-22, down by $20,000 from $1,295,000 this past year (2020-21).
Still, the General Fund is projected to end the current fiscal year in the black by $388,766 on June 30, 2021 and $299,714 to the good by June 30, 2022.
The General Fund Debt Service for the new police department building is projected to be $177,550 for the year including $100,000 in principal payments and $77,550 in interest on long-term debt.
The new budget also includes funding for:
* A 3% cost of living pay raise for hourly city employees with more than four years of service. Hourly workers with four years of service or less will receive a step raise on their employment anniversary date with a 3% cost of living increase July 1. Salaried employees will get a $5,000 pay raise.
*Another paid E911 dispatcher position at $40,405 (salary and benefits). This would increase the number of city funded dispatchers to four to a total annual cost of $160,000, up from $119,595
GENERAL FUND CAPITAL OUTLAY PROJECTS:
POLICE DEPARTMENT
*2 new police cars and related equipment: $95,000 ($45,000 of which is grant funded with local match)
*Furniture and office equipment for new Police Department building: $125,000
STREET DEPARTMENT
*Salt truck: $20,000
*Bridge capital repairs: $25,000
*Street paving $335,000 which includes $250,000 grant
*Unspecified: $15,000
FIRE PROTECTION
*10 portable radios: $9,200
*New Air Bags and Controller: $15,000
*Battery Powered Combination Rescue Tool: $10,000
*Swiftwater equipment: $5,000
*Site work for training site: $6,000
*Unspecified: $30,000
AIRPORT
*Obstruction Clearing Grant: $899,012
*Unspecified: $10,000
PUBLIC WORKS-BUILDINGS & GROUNDS
*Lift and Forks: $20,000
*Unspecified: $5,000
OTHER GENERAL GOVERNMENT
*TN Local Government Support COVID 19 Grant- $136,000
PARKS AND RECREATION
*Walking Trail Improvements: $20,000
*Unspecified: $10,000
MUNICIPAL POOL
*Strainer: $10,000
*Unspecified: $5,000
GOLF COURSE
*Unspecified: $10,000
CITY HALL BUILDING
*Unspecified: $30,000
FINANCIAL ADMINISTRATION
*Unspecified: $5,000
SANITATION
*Unspecified: $5,000
WATER AND SEWER FUND PROJECTS (FIXED ASSET ADDITIONS):
*Meter reading software: $10,000
*Backhoe: $103,000
*Tube settlers: $30,000
*Replacement of sewer lines: $600,000 (Half of Federal COVID Grant Funds)