December 16, 2004

Village revenue, expenses remains stable in 2005

Read related sanitary sewer rate story
See the 2004 and 2005 budget comparison chart below

By Robert Mihalek

The Village’s total revenues and expenses are expected to remain relatively stable next year, compared to figures from 2004, the 2005 Village budget shows.

Total revenues are projected to increase by less than 1 percent, or $49,747, to $6,383,138 in 2005, compared to $6,333,391 budgeted in 2004.

Total expenditures are expected to decline by less than 1 percent, or $11,926, to $7,364,713 in 2005, from $7,376,639, as listed in the 2004 budget.

Total Village expenses for the year are projected to be higher than total revenues by $981,575, or 15.4 percent.

The Village plans to spend $1.06 million on 29 capital improvement projects next year, the budget shows.

At its meeting Dec. 6, Village Council unanimously approved the first reading of an ordinance adopting the 2005 budget. A second reading and public hearing are scheduled for Council’s next meeting, on Dec. 20.

This would be the first time in many years that a Council has passed a Village budget before the start of the budget year. Council member George Pitstick, who served on Council in the 1980s before being elected again in 2001, said that this is “the first time in my memory” that the Village will have a new budget approved before January.

Council also held two workshops in November to review the budget with Village Manager Rob Hillard and other staff members.

Budget projections
The 2005 budget is considered balanced, as Village officials define it, so projected revenues are not expected to be higher than budget and daily expenses, which do not include capital spending.

Out of the Village’s five main funds — the multi-fund, or general fund, and the four utilities — only the electric system projects that daily operational costs will be higher than revenues, an analysis of the budget shows. The electric system’s operational costs, which do not include capital items, are projected to be 1.7 percent, or $39,961, higher than revenue for 2005.

Total spending for the electric system — including capital projects — will exceed revenue by $359,961.

Budgeted reserves for four of the five major Village funds are projected to be at least 25 percent of each of the fund’s revenue. For several years now, Council has wanted each fund to have a year-end balance, or reserve, of at least 25 percent of the fund’s projected revenue.

Hillard has said that a year-end balance of 8 to 12 percent per fund is adequate.

The sewer system is the only fund expected to not meet Council’s targeted goal for year-end reserves. The system is projected to end 2005 with a reserve of $23,229, which is just 3 percent of the fund’s daily operating costs. Revenue and expenses for the sewer system are expected to increase, thanks to a move by Council to accelerate a planned rise in sewer rates to January. This action will bring in an estimated $30,000.

The fund balances of the water system and solid waste fund are expected to increase from 2004 budget projections. The year-end reserves of the other three funds are projected to decline.

The multi-fund budget projects that the fund will end 2005 with a reserve of $610,000, which is 25.2 percent of the fund’s daily operational costs. Total expenses in the multi-fund, which includes budgets for Council, Village administration, planning, parks and recreation, police and streets, are projected to outpace revenue by $422,108. This gap is caused by the capital projects the Village plans for 2005 in the multi-fund.

Out of the multi-fund’s 17 activities, seven areas are projected to increase their expenses.

The budget projects that the Village will receive $1.417 million in income taxes in 2005, the same amount listed in the 2004 budget. Income taxes are expected to make up 58.6 percent of the multi-fund’s total revenue.

The water system is projected to end the year with the highest percentage of year-end reserves, compared to revenue, at 44.8 percent. The system’s total spending, including capital projects, is expected to slightly exceed revenue, by $6,948, or 1.2 percent.

Both wages and benefits for Village employees are projected to rise in 2005.

Wages are budgeted at $1,921,802, a 4.5 percent increase, or $83,536, over the 2004 budget numbers of $1,838,266. Benefits are expected to increase just 0.2 percent, or $1,338, to $662,266 in 2005 from $660,928 in 2004. Total wages and benefits for 2005 are anticipated to be $2,584,068, compared to $2,499,194, as budgeted in 2004.

Benefits offered by the Village and included in the budget are pensions, health, dental and life insurance and Medicare costs. The benefit figures include costs paid by both the Village and employees. Budget documents from both 2004 and 2005 show the Village expecting to employ 33 full-time positions.

Capital projects in 2005
In 2005, the Village plans to conduct several more projects, for more total dollars, than it budgeted in 2004, though a number of the projects planned for 2005 were also budgeted, but never completed, in 2004.

The highest number of projects are coming out of the multi-fund, which will account for 14 projects. These include a new barn to store road salt, $80,000; mini-excavator, $45,000; new police car, $25,000; upgrading weapons for the police, $15,700; library improvements, $15,000; and new copier, $10,000. The Village will also spend $30,000 in improvements for cable access channel 13.

The multi-fund and water and sewer systems are to share costs on the last phase of the Dayton Street sewer project, which includes finishing the upgrade of the sewer line on Dayton, between Wright Street and East Enon Road, upgrading the waterline between Stafford and High and rebuilding Dayton, from Stafford to East Enon. The total cost of the project is $550,000 to $600,000, and the Village has applied for $444,000 in state funding. The Village has budgeted $107,500 for the project. The Miami Township trustees have also pledged funds for the project.

The Village’s Public Works Department, which includes streets, electric, water and sewer, will contribute a total of $130,000 to build a new facility for the Public Works crew at the Sutton Farm on State Route 343. The Village had hoped to renovate the existing crew facility this year for $45,000, but the costs grew as the extent of the work project became clearer.

The electric system plans to upgrade the power line on East Enon, and on Dayton Street, for $84,000. This project is also carried over from 2004. The system will also fund a new bucket truck, $102,000, tools for the truck, $15,000, and substation controls, $30,000. The electric and water systems will split the costs of a $35,000 truck.

The water system has budgeted $41,500 in system improvements. The sewer system is funding $16,000 in improvements at the wastewater treatment plant and a $15,000 study of the treatment plant.

The Village plans to spend an estimated $150,000 to build a two-acre retention pond on the Glass Farm, which the Village owns. Earlier this year, Council agreed to use most of the money remaining in the Village green space fund for this project. Building the pond will help alleviate flooding on the north end of town and would support development on the western border of Yellow Springs, by helping control stormwater runoff caused by growth, Council members have said.

Currently, the Village does not have plans to replenish the green space fund, though Council does ask Yellow Springers whether they want to contribute money to the fund at this time in a financial survey Council is distributing.