Orchard City trustees approved the town's $2.2 million budget document for 2014 during their regular meeting on Dec. 11.
The budget projects $1 million more in spending than in revenue for 2014.
Mayor Don Suppes explained the difference between the two numbers is accounted for by reserve funds allocated to prior year projects which weren't completed.
"We have had several items that were not spent in the last few years' budgets due to scheduling and engineering issues. In 2014, we plan on getting a few of these projects done. A few of the big ones are Tank Hill automation, treatment plant upgrades, moving the Town Park irrigation water source, water line pressure relief valve replacement, water line replacements (Kettle Road and elsewhere) and road projects."
The 2014 budget allocates $2.2 million in spending against $1.2 million in revenue.
The trustee finance committee notes in the budget message that, "The national economy continues to be in a very unhealthy financial position."
The message sounds a sour note concerning future revenue streams, stating, "Most revenue for 2014 is expected to decline with a few large drops in certain sources."
For example, the budget projects 39 percent decline in federal minerals leasing payments to the town, and a more than 50 percent drop in state severance tax payments. Both sources of revenue are tied directly to the area's coal mines.
The town's budget notes that one half of the $301,111 income for government operations in the general fund comes from Orchard City's share of county sales tax revenues. The county administration expects those revenues to be "flat to declining" in 2014.blog comments powered by Disqus