Orchard City's 2013 budget was adopted by the town board on Dec. 12. Total income projected is approximately $1.45 million (rounded).
Expenses are projected at approximately $2.72 million (rounded).
Mayor Don Suppes explains that the difference between revenue and expenses is accounted for largely by projects that weren't completed in 2012, but which remain in the budget for 2013. The money for those projects was budgeted in the previous year but not spent. So, it remains in the fund balances that are carried forward into 2013.
Those fund balances carried forward are not reflected in the town's projected income for the year, which creates a larger-than-actual difference between expenses and income figures, the mayor explained.
The projects being carried forward include the water plant hydro project budgeted at $270,000, and an automation project for the Tank Hill water tank estimated at $225,000. There is an additional $90,000 in water system capital construction projects in the budget.
Five of the town's seven funds in the budget are projecting to spend down their fund balances to achieve a balanced budget. The general fund, road fund, water fund, water capital construction fund, and parks fund will all spend more than they take in during 2013.
The budget document includes a number of explanatory notes including the following ones:
• The park fund does not support itself. So, it requires a transfer of money from the general fund. The 2013 budget states that 79 percent of the parks budget is transferred from other town funds. One percent of the parks budget comes from lease revenue, and 16 percent comes from franchise fees paid by utility operators in the town.
• The road fund is not able to sustain itself due to declining revenue in HUTF (state gasoline tax) and interest earnings, states the budget narrative. Available cash assets in the road fund will be spent down to zero dollars during 2013.
• The general fund will transfer over $124,000 to roads in 2013.
• Major expense items in the roads budget for 2012 are $100,000 for culvert replacement and $150,000 for "improvement projects."
General operating costs for the road fund are $86,738 and administration is $60,220.
• Orchard City does not levy sales or property taxes. "Most of the town's income is derived from a portion of resources that are shared with other state and local entities." The revenues include the county sales tax, county road and bridge fund, state gasoline tax, Lottery, and mineral leasing and severance tax receipts.
The town has "no control over these sources of revenue... Most revenue for 2013 is expected to decline with a few large drops in certain sources."
• Almost half of the $368,636 general fund revenue in 2013 will come form the town's share of the county sales tax revenues.
• County sales tax receipts for 2013 are projected to remain steady from 2012; but, they are down 20 percent or more from recent years.
• Mineral leasing revenue from the federal government is expected to drop by almost 20 percent form last year. State severance tax distributions will be flat at $30,000; but, they will be down by more than half from three years ago.
•The biggest maintenance project in the water utility is $200,000 for pipeline replacement in the Pheasant Run subdivision, according to a budget document notation.
• Administrative expenses in the water utility including department salaries are $391,820. General operations are budgeted at $119,775. The water fund's total expenditures are projected at $1.22 millionblog comments powered by Disqus