Finances Brought To The Forefront At City Council

By JODI MYERS
Daily Globe News Editor

SHELBY - During the Monday night City Council meeting, updates from the Finance and Personnel Committee were shared and a resolution for a change order increase for the digester lid replacement at the waste water treatment plant was approved.

Councilmember Pat Carlisle, who also serves as chairperson for the Finance and Personnel Committee, went over her report, noting total city income tax receipts for 2014 year-to-date were up from last year by 9.5 percent.

"The greatest increase was in employee withholding, up by 11.39 percent," she said. "Business taxes were up by 6.24 percent and individual taxes up by 1.96 percent over 2013."

She also explained out of the current 1.5 percent income tax rate, 0.5 percent is dedicated to construction of the police/court/jail facility and streets and sidewalks.

Carlisle then reported the General Fund had a balance of $236,621 with encumbrances of approximately $130,000.

"Total revenues in the General Fund exceeded total expenses by only $101,560," Carlisle noted.

She said the Court Probation Fund still showed a negative balance of $4,177, but is expected to recover by October or November. She pointed out the court fees to date were down $32,718.

Talking about the Capital Improvement Fund, Carlisle said on August 31, it had a balance of $430,727, reflecting a decrease in both revenue and expenditures in that fund. She noted the balance a year ago was $502,073.

"The absence of transfers from the General Fund to the Capital Improvement Fund continues to help keep the General Fund positive, but is not sustainable," Carlisle noted. "Year-to-date, that transfer is down by $62,485."

Carlisle further reported the moratorium on health insurance premiums will be reviewed in October or November.

"The moratorium was necessary to sustain the General Fund for 2014," she said. "The moratorium was possible only because we had a sufficient balance in the Hospitalization Fund. The current balance in the Hospitalization Fund is $552,393.

"All three utility funds - water, sewer and electric - were performing well and showed reasonable balances," she added. "For 2014 year-to-date, all three utility funds showed revenues exceeding expenses. It is important to maintain reasonable balances for sustainability and reliability of our utilities," she said. "Wages, purchase power and administrative costs have increased this year while hospitalization has decreased."

In a final note, Carlisle said there will be testing for the police dispatcher position this week and noted about 30 people have applied for the position.

Later in the meeting, Council passed a resolution for a contract change order with Adena Corporation for the waste water treatment plant digester lid replacement project in the amount of $6,715.36 as an increase.

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