The Dexter Board of Aldermen is expected to approve an “inflated” $12.2 million operating budget at its upcoming June 3 meeting.
City Administrator Mark Stidham said the budget is inflated by about $2 million because he budgeted $1.3 million in possible federal grant money for airport improvements and about $700,000 in possible grant funding for the city’s walking trail.
If the city receives the grant funding for the airport, Stidham said, it will pay for “overlaying of asphalt, paving the runaway and taxiway,” Stidham explained. “They’ll do the crack-seal repair. That is completely revamping the runway.”
The project, Stidham said, is a 95-5 grant, with the city paying for 5% (approximately $68,000) of the project.
The trail grant, Stidham said, is a 68-32 grant.
“We upped our percentage (to 32) … to up our chances of getting the grant,” Stidham said.
At this time, Stidham said, the city has applied for both grants, and they were included in the budget, along with the city’s matching funds.
“It looks inflated. We usually run at $10 million every year, consistently, but this year, we’re $2 million over (due to) the runway overlay and trail grants, “ said Stidham, who anticipated the next budget, without the grants, will be back to $10 million.
For the next fiscal year, Stidham said, the city’s disbursements are projected at $12,271,000, and its receipts are projected to be $11,720,000. The difference is the planned capital improvement projects.
At the end of June, Stidham said, the city will have $5.6 million.
That amount, Stidham said, is “more than we anticipated … It usually works that way.”
Stidham said he projected $5.1 million for “our combined funds” for the end of fiscal year 2020.
“Our property tax this year, actual numbers, is around $742,000,” Stidham explained. “I only budgeted (property tax at) $590,000. I try to stay below” the actual numbers in case there is a decrease in the city’s property tax.
The same, he said, is true of sales tax income.
The city’s sales tax this year was at $1.5 million, but “I budgeted $1.4” million, said Stidham. “ … If you’ve maxed out the numbers, there’s no wiggle room” should property and sales taxes come in lower than expected.
Having no cushion or a reserve can cause trouble, Stidham said. “We try to have plenty of reserve to cover operating expenses” and any unexpected expenses, he said
Another expense included in the proposed budget is the addition of a police officer, Stidham said.
Along with the police department’s replacement of cars and tasers, which are “normal replacement stuff we do every year like ever municipality, we have added a police officer because the school has requested another school-resource officer,” Stidham said.
The officer, he said, will be licensed and commissioned through the City of Dexter and assigned to the Dexter School District.
The district, he said, already pays for one SRO.
“They will reimburse the city $80,000 for both officers,” Stidham said. “ … The contract for the second (officer) begins July 1.”
Stidham said the Dexter School Board already has approved the additional SRO.
“We’re working on the contract as we speak,” said Stidham, who indicated the cost per officer is about $48,000, making the city’s cost about $8,000 per officer.
Stidham said each officer will be assigned to two of the district’s four campuses – Southwest Elementary, Central Elementary, T.S. Middle School and the high school/Bearcat Event Center.
Both officers, Stidham said, already are scheduled to attend SRO training this summer.
Also included in the police department’s budget, according to Stidham, is the costs associated with the department’s new canine. The dog completed its training earlier this month.
Stidham said sewer, drainage and water projects are included in the capital budget for the upcoming year.
Those projects will be paid for out of the city’s half-cent sales tax, Stidham said.
Beginning July 1, Stidham said, $700,000 will be spent on the projects, with another $586,000 anticipated for the next year.
“We could let (the sales tax) build up and never spend out of it, but the taxpayers wanted us to do these projects,” Stidham said.
City officials, he said, need to makes these improvements, and not hold onto a balance in the capital improvement fund.
Using the 5% percent from that fund for the city’s match on the airport work is a “pretty good size chunk,” as is the city’s match on the walking/bike trail, Stidham said.
No new equipment, Stidham said, will be added
“administrative wise” nor are any capital improvements expected for the street and fire departments.
“We just got a new trash truck two months ago,” Stidham said. “ … Most of our equipment is in good shape. It will be just day-to-day operations.”
Along with day-to-day operations, Stidham said, the park and recreation department will be replacing some pavilions that are in need of repairs, as well as restroom facilities at some of the city’s parks.
“All employees, based off of evaluations, got 2%,” Stidham said. “No bonus, 2% right across the board.”