Algood projects only a slight increase in expenditures for its 26-27 fiscal year budget, now under review by City Council
The city budget currently uses some $1.1 million to cover its expenditures for the upcoming year. The property tax rate has yet to be set, based on Putnam County’s current reevaluation process. CIty Administrator Keith Morrison said spending fund balance conservatively makes sense.
“This doesn’t make me uncomfortable to spend this because I feel like we’re in good shape and good condition,” Morrison said. “I think this better prepares us for the future and continues to work on park expansion and doing other things to achieve where we really need to be.”
Morrison said the city exceeded revenue expectations last year and has steady growth in the fund balance. Last year, the city budget estimated fund balance expenditures of $1.6 million to balance the budget.
“So we’re going to be spending some money from reserves which, I mean, we’re spending that money to for the betterment of the city so I don’t have any problem with it but just wanted to I guess point that out,” Vice Mayor Luke Hill said. “We still need to be conservative where we can.”
The proposed budget includes $4.83 million in revenues. That number will not be official until the property tax rate is set. But Morrison said that number is lower by about $1 million than he expected. The budget includes some $5.97 million in expenditures.
Morrison said the city will move two expenditures from next year’s budget and complete them this year to help the numbers. That includes two used fire engines.
“It’s part of the long-range plant to continue to move us forward and in the future, lower our costs,” Morrison said. “To increase what we’re returning to general fund out of things that we’re selling. Same thing we’ve done with police cars with our fleet plans, sell off the cars before they become repair issues.”
Among the capital projects included in this year’s budget, $1.5 million for Main Street water line replacement, $500,000 for the new Algood Park, and $350,000 for automated meters.
The new city park, Morrison said, could cost between $2 million and $12 million. The council wants to finish a master plan update on the park this year to see what the public wants.
“I think it will be a big deal, but paying for it is another big deal,” Morrison said.
The council will consider the budget on second reading in May. Morrison said the city must wait for the state certified tax rate to become available.
Among the expenses in the new budget, police department salaries increased some nine percent. Police Department dues and subscriptions increased from $2,500 to $15,000. The same kind of increase also seen in the Fire Department budget.
The Parks and Recreation budget includes a roughly $65,000 increase in salaries.
