An amended 2018 budget for the city of Poplar Bluff would reduce deficit spending, but it appears the only thing left in the general fund cash reserve is an IOU for $4.3 million.
The city council approved more than $20 million in spending for next year during a special meeting held Wednesday.
It includes general fund deficit spending of under $47,000, compared to an earlier version that was in the red by more than $200,000.
Specific balances of the city's three cash accounts were not discussed during the meeting, but the information was requested by the Daily American Republic.
The city reports a general fund balance of over $4 million, however it owes itself for loans made to other city funds. The health insurance account has received nearly $2.6 million to stay solvent, Black River Coliseum facilities almost $1.4 million and the airport just under $400,000.
The city has two other cash accounts, which should also be considered general fund money, city manager Mark Massingham said today.
A money market account holding the remains of the proceeds from a city cable sale has approximately $1.2 million, according to provided figures.
In December 2016, Massingham described as "critical" a combined balance of $1.4 million in the money market account and the general fund reserve.
A second account, a restricted capital fund, has a cash balance of just under $1.2 million. Capital money comes from a dedicated sales tax and can be used only for items such as building and equipment needs.
Massingham cautioned December is the worst time to look at city cash balances and that it will receive a check for $1 million in January from property tax collections.
It will offer what would appear to be a temporary boost, as the 2018 budget still projects deficit spending.
Reduction of the projected deficit was achieved by adjusting sales tax growth predictions, cutting the hours of a cemetery position and other savings, Massingham said during the council meeting.
The city's 2018 budget now reflects sales tax predictions of 3 percent growth, up from 2.5 percent in the earlier budget.
The city will end 2017 with a 2 percent growth in sales tax, Massingham said. An earlier version reflected a flat sales tax due to a glitch in a state reporting system, he said.
"It seems the economy is picking up. Eight Points is in full swing and I know we've got some new businesses opening up around town," Massingham said.
The increased sales tax predictions allowed an equipment budget for the fire department to be added back into the capital budget without increasing the negative spending for that account. Equipment for this department was cut in an earlier version of the budget.
Approximately $2.8 million in capital spending is planned in 2018, with about $453,000 coming from that fund's cash reserve.
Capital spending includes the final and largest payment for the Black River Coliseum and other debt refinanced by the city at that time.
Other expenses cut in 2018 will include the budget for the city cemetery. The department's one full-time worker will be reduced to part-time, saving $40,000, Massingham said.
A part-time position also has been cut at the art museum.
Budgets for professional services and a contingency fund have been reduced, saving another $15,000.
The city also will not see the increase in liability and property insurance expenses that had been budgeted for 2018, he said.
A building maintenance person will be added for Northwest Medical Center, which will be renovated to hold the police department, city court and city hall. This will cost approximately $43,100 in 2018, according to the budget.
Spending of $8 million will be done on the second phase of the Shelby Road extension. It will be fully reimbursed by a special taxing district set up to pay for the project.
For the second year in a row, there will be no cost of living increase for employees. Employees also will carry more of the burden of their health care expenses, as the city switches to a plan with co-pays for doctor visits and prescriptions, and larger deductibles.
Cash flow in 2017 fluctuated at between approximately $1.2 million and $2.2 million, after bills were paid, Massingham said. It is unclear how many of the city's cash accounts are included in these figures.