Council approves deficit budget for FY 2007-08 by Dave Lewis with The Meteor

Although there will be a $237,526 revenue shortfall in the city's 2007-08 budget, the Madisonville City Council nevertheless approved a deficit budget during special session Sept. 26 after setting a tax rate of $0.4989 per $100 property valuation.

This marks the twelfth consecutive year city taxes will not increase. The last time taxes increased in Madisonville, gasoline was $1.27 a gallon, and a gallon of milk cost $2.09.

For fiscal year 2007-08, only 15.14 percent of the municipal budget will be supported by property taxes.

Revenue in the general fund will be $47,267 short of the estimate of funds needed to cover expenses. The general fund includes special projects, employee payroll, insurance, retirement and other expenses related to overall city operations. Total general fund expenses are forecast to run $1,805,938, although only $1,758,716 has been forecast for revenue.

The largest deficit in the new fiscal year budget comes in the city's enterprise fund, which includes water and sewer operations plus trash collection, street light sales and water and sewer taps. The city will need an additional $190,259 above the $1,866,375 projected for enterprise funds needs, bringing total expenditures for the department to $2,056,634.

The shortfalls in both the general fund and enterprise fund will be made up from the city's reserves held over from prior years.

The good news is that the city's general fund debt service obligation will drop by $21,388 this fiscal year, and utility department debt service will be $39,807 less for FY-2007-08.

In the general fund, the city expects to spend $8,044 more this year than in 2006-07 on salaries and benefits this coming year but $1,600 less on supplies and postage. Contracted services expenditures will increase by $12,602 over the 2006-07 budget, while building and office equipment maintenance expenditures remain the same at $5,000. Capital outlay for office equipment has been increased from $3,000 to $5,000 for the coming year.

Madisonville also plans to spend $4,016 more this year than last for animal control, almost all of the increase coming in the form of salary and benefits for the dog catcher.

The Madisonville VFD will have $5,535 less to operate on this year, but will be getting an additional $15,000 in equipment, and the city is expecting to operate the municipal court for $3,115 less than the $33,438 budgeted in 2006-07.

For the coming year, Madisonville expects to spend $165,499 for parks operations, an increase of $49,646 over last year.

The police department has been budgeted at $676,863 for the coming year, an increase of $40,491 over 2006-07 although there is no provision for any additional vehicles, and the department is one officer short of being fully staffed.

The street department will receive $136,888 more than last year's budgeted amount of $361,767, with $61,500 of the increase going to purchase a backhoe and a small trailer.

The budget for expenditures of hotel-motel tax funds is expected to be down this year to $109,600 from last year's $115,650. Most of the decrease will be in the categories of supplies, capital expenditures and contracted services.

In other business during the Sept. 26 meeting, the council approved an 11.8-acre plat for the Buc-ee's store on I-45 at S.H. 21 E.

Also approved was a request from Duane and Jim Standley of Standley Feed and Seed for a 5-foot encroachment into a city easement along Commerce Street at S.H. 21.