CITY BUDGET 03/30/10

Chillicothe City Council members approved the city’s financial plan for the 2010-11 fiscal year, selected a variety of bids for the year and signed off on 13 yearly contracts during their last meeting of the 2009-10 budget year Monday night at City Hall.

The council also approved the hiring of three individuals, including Ron Urton, to fill the newly-created position of city engineer. The city is expected to realize a cost savings by employing its own city engineer rather than contracting with an outside firm.

No one from the public spoke about the proposed budget at a public hearing during the council’s meeting at City Hall. The approved budget is slightly larger than the previous budget with revenues of $11,878,734 to support proposed expenditures of $10,802,494. The 2009-10 budget called for revenues of $10,732,305 and expenditures of 10,726,579.

A 1.5 percent cost of living increase for city employees is included in the budget that will go into effect April 1 and then on Oct. 1, if the city is still within its budget projections (both revenues and expenditures), then the City Council is expected to amend the budget and approve an additional 
1.5 percent cost of living increase.

In approving the city’s budget, the council also approved the Chillicothe Municipal Utilities budget. CMU’s budget includes the areas of electric, water, waste water and refuse. CMU total revenues for 2010-11 is projected at $15,007,545.63 and expenses are projected at $15,096,513.08. The expenses include depreciation and reserve funds are budgeted to fill the difference between revenues and expenses. Specifically, the electric department is projected to have revenues of $11,107,009.30 and expenditures of $11,143,464.85; the water department is projected to have revenues of $1,642,379.10 and expenditures of $1,703,865.95; the waste water department is expected to have revenues of $1,365,011.97 and expenses of $1,291,414.16; and the refuse department to have revenues of $893,145.26 and expenses of $957,768.12.

CMU’s budget calls for a total of nearly $3.3 million in capital items for the fiscal year. This includes $610,000 in the electric department, $252,000 in the water department, $2.4 million in the waste water department and $14,400 in the refuse department.

In one final act before starting a new budget year, the council members amended the 2009-10 budget.

The council on Monday also accepted the bid submitted by M&M Utilities, LLC, for Phase 2 of the Third Street Improvements project. The company, from Chillicothe, also completed Phase I of the project. The city received four bids on the project, ranging from $427,852 to $647,059. The engineer’s estimate for the project was $461,794. M&M Utilities submitted the low bid. This phase calls for a 30-foot wide concrete street with curb and gutter from Brunswick Street to Vine Street with some storm drainage work. The project will include the intersection of Vine and Third Street. The project will be a continuation of last year’s Phase I, which involved a 30-foot wide concrete street with curb and gutter from Brunswick Street to Mitchell Ave. The Phase I project cost $670,000.

The council accepted the following bids for 2010-11:

• Mowing services: Schneiter’s Lawn & Snow Service, $35 per hour.

• Sidewalk concrete: Missouri Mobile Concrete, $95.40 per cubic yard.

• Soda bids for the golf course: Coca-Cola Bottling, Trenton.

• Park concessions: Graves Menu Maker, St. Joe Distributing, and Schwann’s.

• Fuel bids (bulk fuel and self-service pump and associated services required by vehicles used by the police, fire, ambulance, golf course, street and parks departments): MFA Oil.

Also Monday, the council approved annual contracts. With the exception of the Chillicothe Area Chamber of Commerce, each contract was the same amount as the previous year.

The contracts are:

• Small Business & Technology Development Center, $7,500;

• Summer Playground Association, $13,000;

• YMCA, $12,000;

• Humane Society, $5,250 base service fee, one-twelfth of dog and cat license fees collected in FY 2008-09 ($416), all kennel and adoption fees received by the city, all animal control fines received by the city;

• Greater Chillicothe Visitors Region, 97 percent of all city lodging taxes collected by the city;

• Chamber of Commerce:$3,950 for economic development;

• Main Street Chillicothe: $38,000;

• University of Missouri Extension: $4,000;

• The council also approved a contract with the Livingston County Health Center to enforce the food sanitation ordinances of the city at no cost to the city.

• James Suchsland: to provide physicals at a rate of $65 each;

• Livingston County Assessor: to provide real estate and personal property tax books to the city, $2,500;

• OATS, Inc.: $10,000 for public transportation;

The final contract which the city approved was that between the city and Rumery & Associates for economic development. The ordinance authorizes recission, reformation and execution of a consulting agreement and reimbursement agreements with FEC Development, Inc., Chillicothe Municipal Utilities, Chillicothe Development Corporation. The contract, in the amount of $36,000 is divided equally by the four entities.

Consideration of the proposal prompted questions by Patricia Anderson, a member of the public in attendance who asked about a list of accomplishments performed by Terry Rumery. The city administrator said that Rumery submits monthly reports and much of what is submitted is confidential. Anderson also questioned possible conflicts of interest as he represents other entities. 
Rumery, who was in attendance, said that in addition to Chillicothe, he works with Richmond, Excelsior Springs, Caldwell County, Marceline and other private entities, including Copeland Construction, of Chillicothe. Rumery said he works in the same manner as the state of Missouri or other regional economic development groups in trying to attract new business. He said the number of hours he spends working for the city of Chillicothe varies greatly.