City budget planning nears its completion Unexpected expenses must be anticipated

In the final budget workshop prior to setting the 2016-17 budget, the Kimball City Council balanced five departments' budgets without planned shortfalls, leaving those departments with little wiggle room.

Often a budget will appear to be made specifically to go into the negative, but, council members have explained in the past that if money is needed for something the expenditure must already be in the expense budget.

The trash department worksheet shows a total revenue of $188,800 with no tax allotments for the department while expenses total just $149,665, leaving a remainder of $39,135.

Adjustments were made to the proposed swimming pool budget as the council directed during the previous budget workshop. That proposed budget balances almost perfectly with revenues at $62,611 and $62,490 for a positive amount of $121.

The Kimball Cemetery remained virtually unchanged from previous workshops and will still take a loss in revenue of more than $92,000 from the budgeted revenue last fiscal year. Likewise, expenses were cut accordingly from approximately $178,000 last year to a proposed $34,860 this year. Those cuts in expenses balanced the budget with an excess of $1,140 in revenue.

The Park and Recreation Department, governed by an executive committee, is a joint venture between the City of Kimball and Kimball County.

Total proposed revenue for that department was listed at $343,167.20 with proposed expenses totaling $343,000 for a positive balance of $167.20.

"The executive committee met last week and they directed Jeremy (Williams, park and recreation supervisor) and myself to work out those numbers to ensure that those would be worked out so that we don't have a deficit budget again," City Administrator Daniel Ortiz said. "This was accomplished through some reductions in area maintenance as well as the operating expenses and reduced salaries and benefits. Jeremy proposed taking a pay cut himself."

The proposed Street Department budget was adjusted to near perfection with budgeted revenue totaling $580,185.00 and expenses figured at $580,023.16 for a remainder of $161.84 at the end of the fiscal year.

"We cut some items between operating expenses as well as fuel," Ortiz said. "Again, that figure is based off of transferring or using part of the Keno funds to pay for our matching portion of the Underpass Project."

Ortiz continued that if the amount for the long-awaited project is higher than expected then administration will have to revisit the issue.

While the above listed department's have balanced budgets with remaining funds awaiting council's vote, others have been prepared with planned shortfalls.

Ortiz said that total valuations declined by nearly $2 million, resulting in a $9,000 decrease to the Fire Maintenance budget. Due to that decrease the fire hydrant replacement project allocation was decreased from $15,000 to $6,000.

With $6,000 still budgeted to complete the fire hydrant project, the proposed budget for that department was presented with a planned shortfall of more than $18,000.

Though the Fire Maintenance budget was changed, the budget for Fire Equipment remained the same as last year, with allocations of $9,000 in property taxes.

"The biggest change (in proposed budgets) would be for the library," Ortiz said. "The Library Commission did their part to try to adjust those (numbers). They looked at some increases in revenues as well as decreases in expenses."

Total adjustments to the proposed Library budget will put that department at a loss of $1,291.00 for the coming fiscal year and the budget will not include approximately $5,000 for heater repair and replacement at the library.

That adjustment is significantly less than the originally planned shortfall of $22,000, according to Ortiz.

"Thank you for all of your hard work," council member Christy Warner said to that Library representatives.

The Kimball Police Department, which receives most of its funding from property taxes as opposed to sales tax, will forego two positions as the City of Kimball cuts budgets nearly across the board.

Payroll taxes totaling nearly $24,000 were figured into that budget and the total amount increased to the tune of roughly $12,000 instead of a loss of the same amount, according to Ortiz.

"Again, this is assuming that the grant for the SRO (Student Resource Officer) comes through," Ortiz said. "If not then that number is less $24,000."

Revenue jumped in Park Department's proposed budget more than $18,000 from the budgeted revenues last year, bringing the total proposed revenue to $68,200 which includes a $7,500 transfer from Keno funds to match the Tree Grant Program funds for the upcoming year.

Conversely, the proposed expenses dropped from last years budget decreased more than $10,000 but the proposed budget still has a planned shortfall of more than $4,500.

"For the Parks Department, this was one where we try to look at to cut from, but there isn't much there unless we start looking at salaries," Ortiz said. "There are some items that Jim Shoup and John Heidemann have looked over and there are some items that need to be replaced."

The City of Kimball's Electric Department has been the main money earner, but recent reductions in use are causing some concern for the department's sustainability.

"It's scarier just because electric has always been the revenue generator," Ortiz said. "With the oil and all of the slow down it seems our usage has dropped."

The line crew has been working with just three men for more than a year and a half, according to Ortiz, but the fourth position was recently filled for safety factors.

While the proposed budget for this department includes a planned shortfall of more than $540,000 but that amount includes budgeted fail safes in case major projects must be completed.

Beginning in January, resident inside and outside the city limits will see an increase in trash collection fees. Additional increases will include the green dumpster rates for yard waste from $1.00 to $2.50 each month.

"In the past two or three years, we have invested in about 1,000 dumpsters, and the last time we bought about $25,000 worth," Ortiz said. "Each 3-yard dumpster costs $700 to $800 including freight, a 2-yard dumpster costs $600-$650 and a yard and a half costs anywhere from $400 to $450 approximately."

Ortiz added that the dumpsters the City had on hand had been used since the City took over the department.

Landfill gate fees will be increased as well, but the proposed budget includes a anticipated shortfall of nearly $153,000.

"Moving forward, in the next year or two, we are going to have to start considering expansion of the solid waste cell," Ortiz said. "When we built that cell, we built it at a third of the actual size and we ran into finance issues of not being able to afford building the entire solid waste cell all at once."

The City experienced unexpected costs while capping the last cell. Additionally, they face continued unnecessary costs at the Landfill such as the rental cost of a screen, $15,000, to separate the trash from the compost pile.

"When people throw trash in the green dumpster, it is going to cost," Schnell said. "Try to do the right thing. Put your trash in the trash."

The largest planned shortfall in the proposed budget appears to be in the Economic Development department. That budget, which is governed by the Economic Development plan, was last amended and voted on by citizens in 2010, according to Ortiz.

"That accounts for a quarter of sales taxes to go specifically for economic development as well as the property tax that was levied, originally, for the concept of the underpass," Ortiz said. "Total sales tax receipts based on the projection of $415,000 is $138,000. Property tax with evaluations is $147,000."

Additionally, $2,500 in interest income and $100,000 in state funds, reduced from $750,000 in past years, brings overall revenue for the Economic Development budget to nearly $388,000.

The department's proposed expenses total more than $1.5 million dollars for a planned shortfall of $1,166,218.75.

"The expenses figure is $1.5 million, but that accounts what has been collected over the years for the Economic Development program," Ortiz said. "So on the grants and loans given (line item), you see that we have just shy of $1.4 million. That is how much funding is available for Economic Development grants or loans."

Ortiz added that the City of Kimball is attempting to work with previous loan participants to modify loans if there has been difficulty.