The city of Poplar Bluff will make its first payment on the new police station, as well as purchase a new fire truck, in 2023.
The proposed $13.8 million general fund budget for the city includes both and is balanced, city manager Matt Winters said Monday when presenting it to the city council. The budget is expected to be a voting item at the Dec. 19 city council meeting.
REVENUES
The budget also includes a projected 5% increase in collections for the sales tax that supports the general revenue fund. This 1-cent sales tax provides 45% of general fund dollars. Expenses from this fund include police, fire, street and city hall operations.
“Sales tax revenues over the last several years have seen modest increases, with an average increase of approximately 5% from 2018-2022,” Winters said in budget documents presented to the council. “This fiscal year, the city has realized sales tax growth of approximately 5%, due in part to nationwide inflation.”
In addition to $6.9 million expected to be generated by the 1-cent sales tax, general fund revenues will also be supported by a projected $1.8 million paid in fees by city utilities, $1 million in real estate taxes and smaller amounts from license and permit fees, other taxes and court fines.
A capital improvements sales tax will also generate nearly $3.4 million of the projected $3.7 million this fund will see in 2023.
CAPITAL PROJECTS
The city will make its first payment on the Shelby Road police department next year. The nearly $402,000 expense is about half of what it will be going forward, Winters said.
Another approximately $900,000 expense will pay for a new ladder truck for the fire department.
Expenses from the capital budget are restricted to specific items, including equipment and building needs.
A final annual payment of approximately $400,000 was made in 2022 on Highway 67 and Oak Grove Road improvements, Winters said.
The city will also make a final $500,000 payment in 2024 on a technology loan taken out under former city manager Heath Kaplan.
EXPENSES
Costs for police, fire and street department services will top general fund expenses in the 2023 fiscal year.
Raises
Both fire and street departments will see raises negotiated under union contracts in the coming year. Council members voted Monday to approve a union contract for street, motor pool and cemetery departments which includes a $2 per hour wage increase in 2023, and then 4% each year in 2024 and 2025.
Members of the city police dispatchers union and the fire department unions will also see contract-negotiated raises, Winters said.
While police officers voted to withdraw from the union representing the department, the city is also negotiating raises there as well, Winters said.
Money for this has been budgeted for, he said. As long as the increases remain within the approved budget, they will not be brought back to the council for a vote. The estimated 2022 police department salary expenses are $3.05 million. They would be about $34,000 higher in the proposed 2023 budget.
No additional raises are planned for general fund employees. The city approved a 2% raise in 2022 for general fund employees. These staff members are also receiving twice-a-year payments equal to a 3% raise in 2023 and 2024, paid for with American Recover Program Act money.
Code enforcement and animal control
The city will increase staff in the code enforcement and animal control departments by one-half of a position, Winters said.
The two departments currently have three full-time staff members and one half-time worker. Duties are shared between some members of both departments, Winters said.
“This will give us more coverage on both sides of it,” he explained.
Cost by department (approximate) are projected at: city manager, $187,000; city attorney, $100,000; Municipal Court, $230,000; city clerk, $198,000; human resources, $110,000; finance/collections, $319,000; mosquito abatement, $26,000; planning, $293,000; police, $5.1 million; animal control, $162,000; code enforcement, $178,000; fire, $2.6 million; street, $1.5 million; cemetery, $167,000; motor pool, $468,000; non department (includes professionals fees, liability insurance and other items), $2.2 million.
OTHER FUNDS:
Separate budgets will take care of the airport, art museum, Black River Coliseum and pool and fitness departments.
Budgets for these programs are also balanced, Winters said, although they are supported by transfers from the general fund.
The airport will see expenses of $738,000, receiving just over $23,000 in general fund support to cover costs. The airport is also receiving separate COVID-relief dollars, in addition to a projected $700,000 in earnings from airport fuel sales.
Art museum costs will be almost $67,000 in the next fiscal year. About $37,000 comes from general fund support.
Coliseum expenses are projected at just under $677,000. Only $36,000 of that is expected to be covered by the general fund, compared to an estimated $96,000 in 2022 and actual costs of $139,000 in 2021.
The coliseum is projected to increase revenues in the next fiscal year, Winters said.
General fund support for the pool and fitness department will be similar to past years at almost $118,000. Overall expenses will top $225,000. Salaries of $130,500 make up the majority of that cost, with natural gas heating expenses at $42,000. Natural gas spending is up from around $25,000 in past years.