A spending plan of more than $60 million passed Monday by the Poplar Bluff City Council will see the utility operate in the black in 2019, with a slight deficit for the general fund.
Municipal Utilities projects gains of more than $1.3 million under a $46.6 million budget.
The general fund anticipates dipping into cash reserves for about $35,000 as part of a $15.4 million city budget.
City manager Mark Massingham cautioned the council they may need to look at the general fund budget again early in the New Year.
Shifts may be seen in sales tax collections, which make up about 40 percent of revenues used to pay salary and operating expenses for the police, fire and other city departments.
Collections saw a significant dip in December, Massingham said, but it could be because a business was late reporting collections.
"I'm not going to panic at this point, and get us through the next month or two. We can always come back and amend the budget," Massingham said. "I guess I'll say I'm not as comfortable with this budget as I was two weeks ago, because of the sales tax. That could change."
Sales tax through October was on target, Massingham said. Those figures were available prior to the Dec. 3 meeting and used to calculate the budget proposal.
"It's just kind of scary, what one month can do to you, especially with sales tax," Massingham said. "We'll definitely monitor it. If it declines or doesn't go back up, I may be coming back to you."
About 80 percent of city expenses pay the salaries and benefits for employees, at just over $9.7 million.
Spending remains steady for departments, with slight increases to reflect a 3 percent raise given to employees in 2018. Police and fire spending, the two largest departments at $5 million and $2.5 million, respectively, increases by less than 2 percent.
Other expenses include $3 million to finish an extension of Shelby Road and payments on debt related to equipment purchases and building projects.
This is the first budget that will not include a payment for the Black River Coliseum, which was paid off in 2018. Debt payments have been reduced by more than half, to $778,000, with the end of that note, as well as debt related to past library and park department improvements.
Utilities will provide nearly $2.6 million in support to city operations through the charge off of electric used by city buildings and a tax received on utility collections.
The electric department makes up $40.3 million of utility expenses, and more than $1 million of gains expected to be seen by the utility.
The electric department operated at a deficit prior to a 2015 rate increase.
In other business, the council:
* Discussed amendments to how building permit fees are calculated.
* Discussed and approved a budget for the Highway 67 Project, which pays for debt related to the four lane project between Poplar Bluff and Fredericktown.
* Approved the destruction of antiquated records from the collector's, fire and park departments.