The meeting is scheduled for 9 a.m. and no public comment will be allowed.
The City planned to spend a little over $26 million this time last year. Budget adjustments brought spending expectations to $30.7 million. But then COVID-19 hit, and lack of activity curbed City spending to the originally-budgeted amount, although the City is bringing forward $1.7 million of expenditures into the new year. The new fiscal year started July 1 and will end June 30, 2021.
The budget adjustments over 2019-2020 totaled about $4.7 million. About $2.4 million of that adjustment was added to debt service. The City refinanced, refunded and added debt to a 2009 bond. About $1.2 million principal remained on the 2009 debt and the City added about $1.4 million in new debt and financing charges. The City had planned to spend about $500,000 under “debt service,” but the actual spending came to nearly $2.9 million.
City Manager Morris Madrid presented the refinancing-refunding bond to the City Commission after the budget was passed last July and will do the same this year for another 2009 bond this year, adding about the same amount of new debt. Therefore the same sort of budget adjustment can be expected next year.
The new debt from last year and this year is for unspecified “projects we could not afford otherwise,” according to Madrid’s memo to City Commissioners.
About $250,000 of the $4.7-million budget adjustment in 2019-2020 went for “other capital purchases” in the electric department.
Another $721,000 of the $4.7-million budget adjustment was a U. S. Department of Agriculture bridge loan the City took out until the $6 million loan comes through to fix the downtown water pipes as well as the Cook Street water tank and pumping system. About $3.5 million in USDA grant money will bring that project up to nearly $10 million.
In the upcoming year, the city plans to spend $35.5 million compared to $26 million last year. Capital projects on water and wastewater systems are driving the budget up.
The General Fund will make $4.4 million in revenue and will spend $6.2 million, a $2-million transfer from utility-fee revenues making up the deficit spending.
The electric, water, wastewater and solid-waste utilities will make about $12 million in fees, but will spend nearly $12.2 million, spending $200,000 in reserves to make up the difference.
The Capital Projects Fund will receive $12.7 million in loans and grants, but $13.5 million will be spent on projects. Transfers and spending down reserves will make up the difference.
The City will start with $8.7 million in cash and $5.9 million in investments, adding $31.7 million in revenue and transferring $4.2 million in and out of funds, bringing the spending total to $35.5 million.
At the end of the year the city expects to have $10.8 million in cash, but over $500,000 must be held in the General Fund’s cash reserves. The state requires one-twelfth of the General Fund’s $6.2 million expenditure be held in reserve in case gross receipts taxes or other revenue sources are lower than expected. Therefore the ending cash balance in funds is expected to be $10.3 million.