Benton City Council on Monday approved a $2.7 million budget for the 2017-18 fiscal year during its regularly scheduled meeting at Benton City Hall.
Total revenues for the city’s general fund, according to the budget, come to $2,790,370. Ad valorem taxes account for the lion’s share of revenues at $820,000. Earnings taxes make up $430,000, while insurance premium taxes are expected to bring in about$750,000. Gas franchise fees account for $144,000, and miscellaneous park income was anticipated to add about $100,750. A previous fund balance carries forward $200,000 into expected city revenues for the year. ABC revenues were expected to bring in $95,200 in regulatory fees and interest income.
General fund general expenses accounted for the majority of city expenditures at $1,190,011.50, according to the city budget. Among those general expenses included $225,000 in hazardous and non-hazardous retirement pay, as well as $203,000 for hospital insurance. About $100,000 was allocated toward City Hall improvements; office salaries accounted for $79,000; property insurance and liability accounted for $130,000. The city allocated $28,840 for mayor and council member salaries.
The city allocated $459,000 toward Benton Police Department expenses. Among those expenditures, $412,000 were allocated for salaries; $33,000 were allotted in supplies and equipment; operation and maintenance accounted for $7,000; and uniform allowance was budgeted at a $5,500 expense.
The city budgeted $161,200 toward Benton Fire Department expenses, of which $65,000 had been allocated for firemen salaries. Fire chief and assistants pay accounted for $12,600 of the total allocation; $10,000 went toward vehicle maintenance; $27,000 was set aside for equipment and supplies; uniform expenses were budgeted at $10,500; hydrant repair accounted for $5,000; and the city budgeted $23,600 toward payment on a department fire truck.
Benton Street Department expenditures accounted for $361,750 of the city’s budget. Salaries accounted for $274,600 of that expense; equipment and supplies totaled $15,500; mechanic tools and expenses came in at $12,000; street improvements were budgeted for $15,000; and the city allocated $25,000 for a street department truck.
Parks department expenditures were budgeted for $384,980. Concession and park building maintenance accounted for the lion’s share of department expenses at $255,000; park utilities were anticipated to cost $24,000; park improvements came in at $16,000; and the city allocated $66,000 for parks department salaries.
ABC expenses balanced out at $95,200, with $48,700 of that total going toward police equipment and supplies; $40,000 allocated for police vehicles; and administrative salaries accounted for $5,000.
A full breakdown of expenses to the city’s general fund can be found here.
The council also on Monday approved the Benton Gas System budget for the 2017-18 fiscal year. Total revenues were expected to come in at $2,050,040. Estimated revenues included $3,572,000 in gross sales,with cost of gas expected to offset that number by $2,264,460; $652,500 in minimum bills; penalty payments accounted for $25,000 of the total revenue budget; service lines were expected to bring in $20,000; tap-ons were expected to bring in $15,000; and reconnect fees were estimated at $5,000.
Benton Gas System operating expenditures were estimated at $2,037,240, which netted a projected department profit of $12,800. Operating expenses included $144,000 in franchise fees; $22,000 in meter testing and supplies; $100,000 in insurance fund; $125,000 in radio dispatch meter reads; $90,000 in construction supplies; and a directional boring machine was expected to cost $170,000.
View the total Benton Gas System budget here.
In addition to the general fund and gas system budgets, the council on Monday also approved the 2017-18 fiscal year budget for the Benton Water and Sewer Department.
Department revenues were projected at $2,192,000. Water revenue accounted for $1,283,000 of the total, while sewer revenues were expected to come in at $600,000. Sanitation revenues were projected at $235,000; tapping fees and reconnection fees accounted for $24,000 and $14,000, respectively.
Water and Sewer combined total expenses were expected to total about $2,190,865. Expenditures included $416,500 in water department expenses included $172,000 in employee salaries; $55,000 in chemicals; $96,000 in utilities; $17,500 in equipment and repair and water system maintenance and repairs of $25,000.
Sewer department expenditures included $225,000 in employee salaries; $28,000 in chemicals; $35,000 in sewer system repair and maintenance; $138,000 in utilities; $14,000 sewer system equipment and repairs; and $23,000 allocated for analysis.
General expenses in the department accounted for about $1,056,907. Expenditures included $205,000 principal paid on the water plant bond; vehicle maintenance of $25,000; sanitation expenses-Republic services of $231,000; property and liability insurance of $45,000; and office salaries of $58,000.
View the full water and sewer budget breakdown here.
Initial projections of current water rates at $3 per 1,000 gallons used within city limits and $3.50 per 1,000 gallons used for West Marshall customers and city water customers outside city limits left the water and sewer department shortfall of about $41,865.
The budget shortfall prompted the city to consider hiking water rates for the first time in nine years. The council introduced a proposed rate increase to $3.50 per 1,000 gallons used within city limits, up from the $3.20 residential rate increase proposed last month and the rate the city budgeted for in its 2017-18 fiscal year projections. Customers outside city limits and in West Marshall could expect to see rates increase to $4 per 1,000 gallons used. Councilman Chris Smithmier suggested the additional 30-cent hike in response to continual infrastructure needs the city will have to address in coming years. While a 20-cent rate increase would generate enough to cover the shortfall, a 50-cent increase would produce an additional $107,000 a year.
“After looking at it, that just covers the shortfall,” Smithmier said. “And we still know that we have things we need in … the water system.”
Councilwoman Sherra Riley said she thought it might be beneficial to raise the rate more now to avoid having to consider implementing another rate increase within the next couple of years.
Councilwoman Rita Murray said she, too, was concerned that the city had no cushion to provide funding in the event of an emergency or large project.
“It won’t effect anybody that’s (using) the minimum amount,” Murray said. “… We’re having all these lines breaking. We have no money for this extra stuff, we’re just breaking even. … If we have a major line blow out from one end of town to the other, we don’t have any money in reserve to pay for that. … Constantly, somebody’s having to boil water. These lines, they can only band-aid them so long. When these band-aids blow out, you’re talking hundreds of thousands of dollars. So, if we could every year put a little bit back, say $100,000 a year back, for future repairs and things, it wouldn’t hurt. ”
Councilman Justin Lamb was the only voice of dissent in the matter, expressing concern that the additional increase would cause hardship on city residents on a fixed income.
“I think we should just cover the shortfall,” Lamb said. “I don’t think we need to be accumulating wealth to prepare for what might happen. This is the first year we’ve had a shortfall. … We’re fiscally sound, we’ve just got a $41,000 shortfall that we can make up right here with 20 cents.”
The motion, which was introduced in a first reading Monday, will come up for second reading and final vote during the July 17 council meeting. Rate increases would take effect Aug. 1 pending approval.
In other business, the council:
- Approved $3,500 contract with M&M Pressure Washing to pressure wash and clean city sidewalks at the Memorial Plaza and areas surrounding the courthouse;
- approved $1,000 donation to the Benton Partnership to go toward funding the Solar Eclipse Festival in August;
- amended the lease with the Marshall County Arts Commission on the Children’s Arts Center to include surrounding land previously donated for additional parking;
- approved a resolution to enter into assistance agreement with the Kentucky Infrastructure Authority to provide $1,780,000 loan funds for the city’s wastewater improvement project;
- accepted a bid from Welch and English in Murray for asphalt resurfacing at $74.90 per ton for city street resurfacing;
- approved raising the mayor’s salary to $30,000 effective Jan. 1, 2019, pending a revised job description to outline full-time responsibilities rather than the current part-time; and
- gave final approval to prohibit retail quota drink licenses to be issued within city limits.