January 1, 2004

Council set to approve ’04 budget

Village revenue is expected to decline slightly and expenses will rise in 2004, the final ’04 Village budget shows.

Total revenue is projected to decrease $1,600, or 0.02 percent, to $6,333,000 in 2004 from almost $6,335,000 in 2003.

Total expenditures, on the other hand, are expected to increase almost $612,000, or 9.5 percent, to $7.06 million this year from nearly $6.45 million in 2003.

The final 2004 budget is what Village officials call “balanced,” so projected day-to-day expenses are lower than anticipated revenue, the budget shows. All five of the Village’s major funds — the multi-fund, or general fund, and the four utilities — are considered balanced when capital projects are not factored in to spending.

Village Council unanimously approved the first reading of the 2004 budget at its meeting Dec. 15. A second reading and public hearing on the budget is scheduled for Council’s next meeting, Monday, Jan. 5, at which time Council is expected to approve the budget.

There was little discussion from Council on the budget. Council president Tony Arnett thanked Village Manager Rob Hillard for bringing a final budget to Council in December, before the beginning of the 2004 budget cycle.

Arnett also noted that the Village is spending down its reserve to pay for several outstanding projects. He called the list of planned capital projects a “start,” and said that Council recognizes the “long list” of capital items that remain unresolved.

Council member George Pitstick said that the Village plans to conduct some capital projects this year that, if neglected, would cost more to tackle later. Council member Denise Swinger said that she was “glad to see we can do some” capital projects in 2004.

Indeed, the 2004 budget contains more than 20 capital projects totaling over $918,000.

The largest number of projects is scheduled to take place in activities in the multi-fund, which includes budgets for Council, Village administration, parks and recreation, police and streets. Multi-fund activities are projected to spend almost $316,000 on part of 11 capital projects. These include purchasing a new police cruiser ($25,000) and cameras for three police cars ($18,000 total); improving drainage in seven areas in town ($38,200 total); repairing the Bryan Community Center roof ($35,000); and purchasing a new truck for the parks department ($25,000).

The four areas that make up the Village Public Works Department — streets, electric, water and sewer — will pay a total of $50,000 to remodel the Public Works facility on State Route 343 and replace overhead doors at the facility.

The streets and water departments are planning a joint project to rebuild Walnut Street, between Dayton and Elm, and upgrade the waterline under the street. Rebuilding the street will cost $75,000 and upgrading the waterline $50,000.

The most expensive project is painting one of the water towers at Gaunt Park for $300,000. Troy Slone, who supervises the Village water treatment system, has said that the paint of one of the towers is deteriorating, causing the outside of the tank to rust.

The electric system plans to upgrade the distribution systems on Dayton Street, for $27,555, and around YSI Incorporated, for $60,890.

The waste water system has scheduled just one major project, repairing the sewer system on Corry Street near Kieth’s Alley, for $32,750. Though the project was not originally in the budget, Council added it. Village staff have said that a manhole on Corry is deteriorating, causing sewage to leach into the ground. Hillard described the project as a top priority.

In the multi-fund budget, expenses are projected to outpace revenue by almost $283,000, or 11.5 percent. This gap is caused by the capital projects planned for 2004 for multi-fund activities. Day-to-day expenses, or the money needed to run the budget’s normal activities, are expected to be almost $33,000 lower than revenue.

Spending in eight of the fund’s 17 activities is projected to increase this year.

The budget projects that income tax revenue will increase $92,000, or 7 percent, to $1,417,000 in 2004 from $1,325,000 in last year’s budget. Income taxes make up 58 percent of the multi-fund’s total revenue.

The multi-fund is projected to end the year with a reserve of $589,000, which is 24 percent of the fund’s day-to-day expenses. Council has said that it wants each of the Village’s five major funds to end the year with a balance, or reserve, of 25 percent. Hillard has said that a year-end balance of 8 to 12 percent is adequate.

Though total expenditures in the electric system are expected to outpace revenue, like the general fund this imbalance is a result of capital projects. Revenue is projected to be $25,800 higher than the system’s day-to-day expenses.

The electric system is expected to end the year with a balance of $599,000, which is 26 percent of day-to-day expenses.

The water fund is expected to do even better, ending 2004 with a reserve of almost $172,000, or 35 percent of the fund’s operational costs. The fund’s revenue is projected to outpace its day-to-day expenses by $117,000.

It’s a different story for the waste water system, which is projected to end 2004 with a $47,000 reserve, or 6 percent of normal expenses. Still, the fund’s revenue is projected to be higher than its operational costs.

Despite a planned increase in the sewer fund’s rate structure, the system’s revenue continues to remain flat. Village staff and Council members have expressed concern for the system’s stagnant revenue, and have indicated that the Village may reevaluate the rate structure. Troy Slone, who also oversees the Village wastewater treatment facility, has said that “flows are down some” as well.

Expenditures and revenue for the Village’s other utility, solid waste, are projected to decrease, though receipts are likely to increase in 2004. Council formed a task force to study the system’s rate structure and services. The Village’s contract with Rumpke, the local solid waste hauler, will expire in March, at which time Council is expected to implement a new rate structure under a new contract with Rumpke or another company.

Over the last two years, the solid waste fund could not support itself and had to borrow money from the multi-fund. Hillard said last month that the Village needs to make the system self-sustaining. He said that Council must decide what solid waste services the Village will provide, and then formulate a rate structure to reflect those services.

—Robert Mihalek