Inside the smaller 2018 City budget

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CULLMAN – The City of Cullman’s 2017-18 (fiscal year 2018) budget is substantially smaller than last year’s.  The Tribune took a look to see what happened.

Looking at just the General Fund, as some do, the discrepancy is only $288,000, but the General Fund is not the City’s only funding source.  More than 20 different funds and accounts contribute to an overall budget which, last year, contained $99,629,260 in expenses supported by $101,175,602 in revenues, with a net surplus of $1,546,342.

The FY 2018 budget, on the other hand, is more than $9 million lower, with projected expenses of $90,303,243 and revenues of $91,217,069.

The funding, as mentioned, comes from numerous funds and accounts, the largest being the General Fund.  The chart below is not complete, but shows all fund changes in excess of $100,000:

                                                        2017-18                2016-17                Difference

  •     General Fund . . . . . . . . . . . .    $32,565,304 .     $32,853,504 .     Down $288,200
  •     4 cent Gas Tax Fund . . . . . . .   $237,000 . . . .    $136,000 . . . .    Up $101,000
  •     7 cent Gas Tax Fund . . . . . . .   $502,000 . . . .    $170,000 . . . .    Up $332,000
  •     Property and Sales Tax Fund.    $7,030,000 . .     $6,677,000 . .     Up $353,000
  •     Industrial Park Fund . . . . . . .   $130,000 . . . .    $1,300,000 . .     Down $1,170,000
  •     Industrial Access Road . . . . .   $10,000 . . . . .    $710,000 . . . .    Down $700,000
  •     Cullman Building Account . .    $2,777,000 . .     $7,580,000 . .     Down $4,803,000
  •     Transp. Enhance. Grant . . . .    $3,000,000 . .     $308,000 . . . .    Up $2,692,000
  •     Downtown Revitalization . . . . . $515,000 . . . .    $397,000 . . . .    Up $118,000
  •     Brunner St. Neighborhood . . . . .$790,000 . . . .    $0 . . . . . . . . .      Up $790,000
  •     G.O. WTS Ref 2016 . . . . . . .     $1,399,900 . .     $5,898,050 . .     Down $4,498,150
  •     Sewer Fund . . . . . . . . . . . . . .   $9,396,050 . .     $9,963,000 . .     Down $566,950
  •     Water Fund . . . . . . . . . . . . . .   $15,220,400 .     $17,409,500 .     Down $2,189,100
  •     U.B. Water . . . . . . . . . . . . . .   $11,401,467 .     $11,010,500 .     Up $390,967
  •     Parks and Recreation . . . . . .   $3,636,800 . .     $4,192,400 . .     Down $555,600

Net total revenue 2016-17 budget: $101,175,602; expenses $99,629,260

Projected net total revenue 2017-18 budget: $91,217,069; expenses $90,303,243

The Tribune asked City Clerk Wes Moore, who explained that last year’s budget included funding for a number of capital improvement projects which were started under last year’s budget and carried over to this year.  In fact, each one of the funds/accounts listed above that went down, according to Moore, included capital spending projects in last year’s budget.  Extra money was added to the FY 2017 budget to cover those projects.  As that funding is no longer needed, and far fewer major capital improvements are projected, the budget shrank back to a more typical pre-project size. 

For instance, the General Government Administration budget for property, which includes office and computer equipment, shrank by $51,000 after the same amount was spent from last year’s budget on capital projects like building improvements, office equipment and computer equipment.  After similar types of spending (but in larger amounts) took place under Community Development, its property budget dropped by more than $100,000.

All of that means that Cullman’s budget, while lower, isn’t actually shrinking all that much.  Some revenues are down, such as rental taxes, public utility privilege fees, garbage collection fees and equipment usage fees, among others.  Some other sources, though, like the 5-cent gas tax are up.  There is net shrinkage, but the major source of lost funding comes from the projects the City started last year and doesn’t need to start this time.  And, not needing to start those projects, it also doesn’t need to go out and find funds to add to the budget.  The City isn’t losing money, it simply doesn’t need to spend as much this year.

Highlights

The 2018 budget includes more than $1.5 million in capital spending, including numerous projects and new equipment purchases.  FY 2018 will see the following projects begun, or carried-over projects completed:

Projects:

Fire Station No. 3 on Highway 157
Street facility on Mitchell Road
Water and Sewer facility on Eva Road
Sanitation facility on Convent Road
UV treatment system at the wastewater treatment plant
Greenway project
Technology Village project
Olive Street / Highway 31 intersection
Brunner Neighborhood improvements
Downtown streetscape and facade program
Sequence Health project
Eva Road bridge replacement
Larkwood Bridge replacement
Improvements to Building Department
Improvements to Cullman Economic Development Agency
Improvements to Dispatch
Retail incentive projects

Equipment

10 traffic cameras
8 police vehicles
Other police equipment: tasers, firearms, etc.
Computer replacements and upgrades
IT server upgrades
2 crew trucks and other equipment for Street Department
5 fire truck monitors
Large work truck for Cullman Fire Rescue
Garbage truck for Sanitation Department
Museum equipment
Large truck and lowboy for Water Department

Under the new budget, all City employees will receive a 3 percent raise and a one-time supplement of $600.  All retired City employees will also receive a one-time payment.

The City responded to rising employee healthcare costs by absorbing premium increases.  Employees’ costs will remain the same.

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