Balanced 2021 budget includes personnel cuts for city of Poplar Bluff

Poplar Bluff City Council members are expected to pass a balanced 2021 budget which will include cuts to an additional four city positions. 

The budget was discussed Monday during a workshop session and will be a workshop and voting item Dec. 21.

“Unfortunately, again in 2021 the general fund budget does not include a salary and unfortunately, it does include an increase in health insurance deductibles,” city manager Matt Winters said during the discussion.

There are an additional four positions that will either be eliminated or reduced to part-time to balance the budget, Winters said.

The 2021 budget will include approximately $12.33 million in general fund revenues (see page 2 graphic for breakdown). Total expenses for the general fund would be $12.29 million.

Winters said he would not name the positions to be impacted in 2021 prior to the Dec. 21 vote.

City officials were forced to make approximately $330,000 in cuts mid-year in an attempt to balance the 2020 budget. This included a hiring freeze.

The 2021 budget does include two police officer positions that will remain unhired, said Winters, but the department is about to fill a third position.

The 2021 budget also includes an approximately $300,000 savings from changes to health insurance plans for city employees. 

Effective Jan. 1, city employees will have a $5,000 deductible, up from $3,000. A buy up plan that employees can pay an extra fee to join will go from a $1,500 deductible to $3,000. 

The city pays 100% of employee health insurance and 2/3 of the cost for spouse, child or family insurance for employees hired before a 2019 policy change. The 2019 policy change dropped city-paid contributions for spouse, child and family insurance.

The general fund pays close to $2 million in health insurance.

The next budget year will include two large outlays from the capital projects fund, Winters said. 

This includes the first payment for the city’s planned Shelby Road police department. The payment will be $250,000 in the first year. 

Another $500,000 in matching funds are budgeted for an airport project that has received grant funding. The project will replace existing asphalt portions of the airport runway with concrete. A second future phase would extend the runway. The changes are expected to allow larger aircraft to land at the airport. 

Winters said he also budgeted $30,000 for asbestos abatement at the former police and city hall complex on Second Street, which has been shuttered for several years.

Mayor Robert Smith questions a phone bill for the police department which was included in the budget. Police department officials said it includes approximately $40 per month per mobile unit that gives patrol vehicles access to all of the department’s systems.

Other matching grant funds included in the budget include $100,000 for new 911 equipment.

Council member Chris Taylor abstained from the discussion, saying that her husband’s employment as a firefighter was a conflict of interest.

GENERAL FUND***

__Revenues__

Total 2021 budgeted $12,329,115

2020 (estimated) 2021 (budgeted)

Includes (partial list, approximate):

Sales tax $5,544,333 $5,710,663

Real estate tax $1,127,000 $1,033,090

Personal property tax $280,956 $324,450

Licenses/permits/utility taxes $3,062,287 $3,393,227

Court fines $148,523 $152,399

__Expenses__

Total 2020 budgeted $12,289,265

Includes (partial list, approximate):

City manager $207,251 $161,159

City attorney $96,844 $98,183

City court $209,814 $236,413

City clerk $194,018 $206,745

Human resources $106,032 $107,068

Finance/Collector $339,143 $333,515

Mosquito Planning 0

Planning $228,320 $288,911

Police $5,016,009 $5,031,818

Animal control $132,513 $171,402

Code enforcement $139,472 $84,082

Fire department $2,391,149 $2,485,521

Street department $1,320,388 $1,400,809

Cemetery $208,677 $167,882

Motor pool $385,164 $366,410

*Non department $1,053,080 $1,133,279

*Includes transfers from general fund to support other funds for the Black River Coliseum, the Margaret Harwell Art Museum, the city airport and the pool and fitness center at the Coliseum.

__OTHER FUNDS__

2020 budgeted

Airport $843,472 $645,964

Highway 67 (Four lane to Arkansas border) $2,711,646 $2,603,316

Golf Course $484,482 $677,067

Park dept. $1,562,518 $1,439,812

Art museum $89,223 $52,908

Coliseum $451,347 $470,621

Pool/fitness $182,297 $145,701

Deficits for these funds have been covered by transfers from the general fund, under line item non department.