Daleville budget shows revenues down, expenses up

The Daleville City Council adopted a projected $3.8 million dollar budget Sept. 17, which shows revenues are down and expenditures are up for the 2014 fiscal year.

“The city council is taking a conservative approach to projecting next year’s revenue,” Daleville Mayor Claudia Wigglesworth explained. “We anticipate next year’s annual revenue amount to be less than this year’s budgeted amount due largely to the uncertainty with the federal budget impact to Fort Rucker.”

Wigglesworth discussed an increase in expenses due to exceeding costs and higher health insurance rates.

“Our challenge continues to be that costs continue to outpace revenues,” she said. “Health insurance costs continue to rise.”

The city will pay an increase of $36,000 for employee health insurance and retirement costs.

The total revenues budgeted for the city are estimated at $3,663,500, with approximately 50 percent going toward salaries and benefits.

Of the total revenues reflected in the budget, 59.3 percent of the funds will come from various taxes including $1,740,000 in gross receipts taxes and $245,000 in ad valorem taxes.

Total revenues also include $400,000 from privilege licenses, $380,000 from sanitation fees, $380,000 from court costs and fines and $100,000 from rental incomes for a total of 34.4 percent of the total budget.

The total expenditures for the 2014 fiscal year are projected at $3,791,866, which is  $128,386 more than revenues.

With revenues lower and expenses higher, Wigglesworth said the shortfall will have to be paid out of the city’s reserve fund balance, which is $1.2 million.

According to city clerk Angelia Filmore, as of last month’s closeout, there is an estimated $86,000 in surplus funds from last year’s budget, which is included in the $1.2 million reserve fund.

Wigglesworth noted because of the gap in revenues and expenditures, city employees will not receive a cost-of-living adjustment this year.

“The city has been fortunate in the past to provide a generous COLA annually,” she said.

However, Wigglesworth said the city council will evaluate compensations, salaries and personnel expenses to ensure city employees are fairly compensated and to make sure the city is able to manage the escalating costs in health and retirement benefits.

“The city council is going to review the establishment of job classifications for all of our employees and a corresponding salary pay scale,” Wigglesworth said. “By formalizing employee pay we’ll be able to provide a disciplined approach to compensation that is going to be based on a valid job description, work standards and performance evaluation. Currently our city has no such system in place.”

Wigglesworth said the budget will be adjusted accordingly to make adjustments for employee compensation.

Several capital outlay projects were also included in the 2014 budget.

Capital outlays this year include the repaving of Donnell Boulevard for a cost of about $280,000. Filmore said the city would use earmarked gas tax money and earmarked bond refinance money to fund the project.

“Capital improvement funds will be used for other capital outlay projects in the budget,” she said.

Another capital outlay project featured in the budget is $68,000 to fund sidewalk improvements along Daleville Avenue, Donnell Boulevard and Warhawk Drive.

Wigglesworth announced Gov. Robert Bentley approved the city’s application for the Alabama Department of Transportation’s Transportation Alternatives Program grant for new sidewalks.

The project would expand the existing sidewalk on Donnell Boulevard from Daleville Avenue to Tiny Williams Drive as well as add a sidewalk on Warhawk Drive and on the east side of Highway 85 from Highway 84 to Bojangles.

According to the agreement, the city agrees to pay 20 percent of the estimated $260,000 in costs. Wigglesworth said the sidewalk improvement project should be completed within a year.

Other projects approved in the budget include two new police vehicles for $57,900, police equipment for $30,000, an engineer review and projected building repairs for $50,000 for the recreation department and sidewalk repairs for $24,000.

In other business, city council members appointed Anthony Livingston as a public defender for the city of Daleville Municipal Court for a trial period of six months from Nov.4-April 21. Wigglesworth said Livingston will be paid through the fair-trial tax collection funds.

Wigglesworth also announced another vacancy on the Industrial Development Board. The Industrial Development Board creates buildings for lease to provide to new industries. Interested residents are asked to contact Daleville City Hall at 598-2345.

In other news, Wigglesworth announced the Daleville Water Board approved $35,000 to purchase a new tractor at the city shop. Five city vehicles were damaged after an alleged arson at the Daleville city shop Aug. 15.

The Daleville City Council will meet again at 5:30 p.m., Oct. 1, at Daleville City Hall.