City council to review 2015 proposed budget

The Fulton City Council will review the 2015 proposed budget for the city at its meeting Tuesday. A public hearing will be held 6:30 p.m. at City Hall for those wishing to provide input on the proposed budget.

In the proposed budget is a 5 percent pay increase for city employees. If the council approves the pay increase, it may also discuss how those raises are distributed.

To his knowledge, Assistant City Administrator Jerry Sorte said historically pay raises for individual employees have been determined by department supervisors who can base pay on employee performance. That is a factor Sorte emphasized will need to be voted on by the council.

The Salary Review Committee has suggested that the base hourly wage for current non-represented (non union), full-time employees be raised to $10 per hour. There are 10 city employees whose pay will not reach the $10 per hour base pay with a 5 percent increase, so the committee suggested the city provide funding to fill that void. According to the proposed budget's memorandum, this could cost the city an additional $16,000. These recommendations are reflected in the proposed budget.

Sales tax revenue in September was up 7.25 percent over last year's figures, and the proposed budget reflects a continuation of that. This has given the city additional revenue in its general fund, according to a letter from City Administrator Bill Johnson to the council and public.

Increased sales tax revenue is a contributing factor to the possible pay raises.

"We're looking pretty strong in that respect (sales tax revenue), at least stronger, so there's a little bit more revenue for the city council to consider raises," Sorte said.

The proposed budget includes projected revenues of $44.039 million and total expenditures and adjustments of $43.455 million.

The city has a "healthy outlook," Sorte said, and that is aided by gas and electric utilities.

According to Johnson's letter, the proposed budget includes "a direct transfer of $1.1 million from the electric fund to the general fund and $200,000 from the gas fund to the general fund." He continues, "This total direct transfer of $1.3 million is down from $1.9 million in 2014."

"We try to take a fairly conservative approach to budgeting in that we try to overestimate costs to give ourselves a bit of a buffer and underestimate revenue just a little bit," Sorte said. "The whole idea is just to add a buffer so we don't have any big surprises midway through the year."

Capital improvement expenditures in the 2015 proposed budget come with a $21.483 million price tag, according to Johnson's letter.

Sorte said the city is expected to acquire debt in 2015 with two large capital improvement projects - the new city warehouse facility and updates to the wastewater treatment facility. The warehouse is budgeted for $7.8 million, and improvements to the wastewater treatment facility will cost $13 million for the two-year project with $8 million budgeted in the 2015 draft.

Other possible capital improvement expenditures include:

•Reconstruction of the Elton Hensley Memorial Airport's 06-24 runway, which is currently asphalt. This is expected to cost $2.325 million, but a state grant will pay for 90 percent of the expense.

•Completion of the new Garrett Animal Shelter.

•$25,000 for police patrol units.

•A used replacement brush truck and general purpose vehicle foro the Fulton Fire Department.

•A new two-ton dump truck for the street department.

•An overlay of the Market 500 parking lot.

•A new roll-off truck in the solid waste department.

•Additional capital expenditures to reduce inflow and infiltration into the wastewater treatment facility "to reduce sewer backups and demand."

Fulton residents should expect a 10 percent sewer rate increase, which is included in the proposal. The council still needs to approve Ordinance 1409 which outlines the increase. It was read for the first time at the council's Oct. 14 meeting.

The current base rate, or minimum charge, is $10.50, and the use charge per 100 cubic feet is $3.35. The 2015 rate - $11.55 minimum charge and $03.6850 use charge per 100 cubic feet - will be on customers' January bill if the council gives the OK.

The city has a current inflow and infiltration (I&I) project to tighten the sewer lines which will decrease the water (heavy rain and melting snow) that seeps into the lines. This creates an influx at the wastewater treatment facility. By lowering the I&I at the wastewater plant, City Administrator Bill Johnson previously told the Fulton Sun he hopes the city will be able to stabilize the sewer rates in the future.

In the budget planning process, Sorte said he and Johnson meet with department supervisors to discuss items that are essentially on a wish list. While the city may not be able to afford each wish list item, Sorte said administration looks ahead to following years to see when certain items can feasibly be bought.

Capital expenditures for the Fulton Fire Department total to $79,000 for items such as a self-contained breathing apparatus upgrade ($15,000), pager replacement ($5,000), CPR auto defibrillator ($3,000) and replacement of a brush truck and SUV both valued at $15,000 each.

General fund expenditures for the Fulton Police Department include patrol units ($25,000), ballistic vests through a 50/50 grant ($10,000) and in-car cameras ($15,000).