With only some minor number-crunching left to do, the proposed city budget, for the upcoming 2021-2022 fiscal year is near its final stages of completion.
On Thursday night, Indianola City Clerk Kaneilia Williams presented the mayor and aldermen with a first look.
She gave a category breakdown and summation. “For the general fund, there's a projected $88,953 deficit. For the special revenue funds, there's a net deficit in those of $4,753. In the water and sewer fund there is an increase of $23,479.
In addition to those, Williams indicated a projected net deficit of $30,000 in the garbage collection category and offered her advice. “What I would suggest in the future is possibly a rate increase, so garbage will pay for itself," she said.
Alderman Gary Fratesi then asked what she thought the problem could be and queried if it was that the city was not charging enough or if it has to do with additional services such as hauling off limbs that required an extra payout from the city.
Williams said that she had not yet done an in-depth study, but based on her initial assessment she presumed the problem to be the rate. "Because it should pay for itself and not have to come out of other city funds," she said.
Mayor Steve Rosenthal began to offer his opinion; however, Fratesi suggested that they wait on Williams’ report instead of speculating. Rosenthal said a shortfall should not happen. “It's a pass through, it should not happen, we get charged $15 and we charge the citizens $15," he said.
Elder asked how they could have a $30,000 deficit only under collections. “If we've got a $30,000 deficit are these collecting problems?" Williams alluded to the problem possibly being with the fact that the city had not been doing cut-offs. "Probably over 100 people or so that hadn't paid any for about six months," she said.
Referencing those 100 residents, Elder then asked about the status of businesses and if there were any who may be behind in their payments or not paying. Williams said, “Most businesses are paying as they should.”
Williams said she has since made contact with the company and someone came in and paid the bill. She and Rosenthal indicated that there was a period of about six months when cut-offs were not being done and some people were not paying their bills.
However, Rosenthal explained that during that six-month period they could not turn anyone off because of COVID-19 and when people realized that, they took advantage of it.
Elder asked Williams to produce a report verifying the time frame to determine if the deficit could have been affected by the COVID-19 procedures. Elder said he understood about cut-offs not being done due to COVID-19. “But if this was happening before COVID, then we've got a more serious problem,” he said.
Williams explained the need to break out each fund to show the individual loss or gain, but said if they looked at the combined results the city is in good standings with a $165,864 net income. "Technically, the city is in a positive net position, but you have to show each fund. Like the general fund, there's a $88,000 deficit you have to show it that way because all of the money isn't pooled into one fund, but overall when you put the city’s money together, there's a $165,000 net income," Williams said.
The document also reportedly showed a $24,000 increase in real property taxes, a $43,000 increase in personal property/auto taxes and a $118,000 increase in personal property taxes.
Additionally, homestead reimbursement showed a $5,000 increase, gasoline taxes showed a $9,000 increase, alcohol and beverage licenses showed a $950 increase. “If you look at general sales tax, where most cities (and) counties in the state of Mississippi have suffered, we have an increase there of $159,000,” Williams said.
She also indicated a $71,000 increase in the county road and bridge taxes and $8,000 in aeronautics. Williams said the increases in property taxes is what has lessened the overall deficit in the general fund.
She also mentioned some requested budget increases for large-ticket items and salaries in certain departments, but all of it still has to be approved by the city lawmakers.
Williams said, "Overall the position of the city is looking good." Fratesi thanked her, complimented her on the report and the effort that she put forth in completing it.
A special call meeting is set for the first week in August so the city leaders can discuss and approve the budget items before the budget hearing.
In other business,
The aldermen announced several personnel changes after emerging from their closed executive session, including accepting the resignation of the animal shelter director, Nancy Amaro, increasing the pay of public works employee Larry Dozier as a waste water operator and the hiring of four new public works employees.
They also voted to advertise for a new animal shelter director and rescinded an offer of employment for a potential police officer.
