City Council OKs Capital Expenditures (City Council Meeting 04/25/11)

City Council Adopts Budget for 2011-12 (March 28, 2011 Council Meeting)
March 29, 2011 CT

Chillicothe City Council members met Monday evening for the last time during this fiscal year and formally adopted the 2011-12 budget, which will take affect this Friday, April 1.

The budget calls for estimated revenues of $11,797,450 and expenses of $13,048,480. The city plans to use $1,251,030 from reserve funds currently at $7,551,707 and end the next budget year with $6,300,677 in reserves.

In presenting the budget, Finance Chairman Darrel Rinehart Jr., stated that the budget is conservative and that revenues were down slightly this previous year than what was anticipated.

Alvin Thompson, a former city councilman, stated concerns about the city approving a budget that is not balanced. Mayor Chuck Haney, however, stated that the budget is balanced and that the city was in good financial condition.

Leading up to approval of the budget, council members approved yearly contracts with Main Street Chillicothe, Grand River Area Family YMCA, Livingston County Humane Society, Summer Playground Association, Chillicothe Chamber of Commerce, Small Business & Technology Development Center, University of Missouri Extension Center, Livingston County Public Health Center, OATS Transportation and city physician contract (Suchsland).

Also Monday, as part of the process to close out the current budget year, council members passed an ordinance amending the 2010-11 budget. The largest item in this amendment was the $1,252,000 which the city spent to purchase land for the industrial park. City Auditor Theresa Kelly explained that this was among just a few expenses that were not anticipated when the budget was drawn up and approved a year ago.

City to Expedite Repayment to Hospital Fund Under Budget Plan
March 16, 2011

After receiving feedback from community members following last week's budget meeting, Chillicothe City Council members now plan to expedite the repayment of hospital funds that were used to buy land for the new Chillicothe Correctional Center in the north part of town.

The city conducted a budget hearing Monday evening for the proposed spending plan of fiscal year 2011-12 which begins April 1. During the hearing, Councilman-at-Large Darrel Rinehart Jr. announced that the budget draft now includes $250,000 to be paid back to the hospital fund. He stated that the decision was made following input from the public last week. These funds were used several years ago when the city purchased land on which the state built a new prison facility. Because of a sluggish economy, the city had originally budgeted just $50,000 to be paid back this year; however, under the current proposal, the city this year will repay about half of what is due and plan to pay the remaining $259,250 the following year. The money will come from the city's capital improvement sales tax fund. That fund's total revenues are expected to be $1,829,937 during the year, including a beginning balance of $1,073,319. At the end of FY11-12 the remaining balance in this fund is expected to be $715,183.

Rinehart also noted that the budget reflects fewer meetings for advisory boards, thus producing a savings to the city. Members of advisory boards are paid $35 per meeting and most of the boards -  airport, park and golf - meet monthly. The Railroad Advisory Board meets quarterly. It is proposed that the airport and golf advisory boards meet quarterly and that the park board meet every other month. The park board would meet every other month in order to comply with the requirements for the city to be designated as a Tree City USA city. The members of this board will also be members of the Tree Advisory Board.

Little public comment was made during Monday night's hearing; however, 3rd Ward Councilman Tom Douglas reported on a comment that he had received from a constituent regarding the $600 stipend which is a one-time payment planned to be paid to full-time city employees this year. He said that a community member recommended that the stipend not be paid because the national Social Security system did not include cost of living adjustments this year for recipients.

Alvin Thompson, a former city councilman, questioned why the city had budgeted $1.5 million for the Route V Bridge/Polk Street project that involves demolition of a bridge that is not owned by the city. He said it is an issue between the railroad and the state highway department. The project is a cost-share agreement with the Missouri Department of Transportation and, in addition to replacing the bridge, the project involves straightening out Polk Street so that it will connect directly with Route V. Under a contract signed in May 2009 between the city and MoDOT, the total cost estimate is $3,733,000. The city's maximum amount to be spent on the project is $1.5 million even if the project's total costs exceed what is expected, according to City Administrator Dean Brookshier.

Also Monday, the council heard annual reports regarding activities of the University of Missouri Extension Center, Summer Playground Association and Main Street Chillicothe.

Although the city council is expected to approve the new budget before the end of the month, use of the capital improvements sales tax funds won't be formally approved until after a public hearing of planned expenses which will be April 11. After the hearing, the council - which will include at least three new faces after the April 5 election - must meet to approve the capital improvements spending plan. Among projects earmarked for capital improvement sales tax funds:

$250,000 to repay the hospital fund for purchase of property for the new prison;
$200,000 for the demolition of the old Leeper hotel building;
$72,022 for the bowling center;
$35,000 for the airport state block’s 5 percent matching grant;
$145,000 for a street sweeper;
$250,000 to the Foutch Brothers for redevelopment of the old prison property on Third Street;
$125,000 for computer software.

CITY BUDGET HEARING
Tuesday, March 8, 2011

City Workers to Get Stipend
CT, March 10, 2011

City employees will not see a cost of living increase on their paychecks as in years past, but instead will receive a one-time stipend, according to the budget numbers crunched for the 2011-2012 proposed budget. Full-time employees will receive a stipend of $600, whereas part-time employees will receive a $300 amount.

Other figures that were announced Tuesday night at the city's budget hearing include a reduction in what the city will pay on health insurance premiums. Last year, the city was paying 50 percent of dependent health insurance premiums for city employees. Starting in the new fiscal year, which begins April 1, 2011, the city will pay 25 percent.

Also during the hearing, City Administrator Dean Brookshier voluntarily decreased his benefit package by $3,335.28. His contract states that his wife's health insurance will be 100 percent paid. He has voluntarily changed this to be consistent with the other employees with him paying 75 percent of his spouse's health insurance.

Brookshier commented at the hearing that he was "very appreciate of the true teamwork put forth by the department heads and the elected officials. With the economic situation being what it is all departments have been very conservative in their requests and have kept equipment requests to a minimum."

Equipment to be purchased by the city include a zero-turn mower for the Parks Department and a zero-turn mower for the Golf Course.

Community contributions from the City are also taking a slight hit due to a "cautious and conservative" budget. No changes will be made to the contributions made to KDADC for $1,875, the University Extension in the amount of $4,000, or to the Summer Playground Association (SPA) in the amount of $13,000. Main Street Chillicothe requested funds in the amount of $40,000 for the city for the coming fiscal year, but will only see $27,000, plus an additional $9,000 if they get a CID (Community Improvement District) set up for permanent funding, totaling $36,000. They received $38,000 from the City last year in community contributions. The Grand River Area Family YMCA will receive $14,500, which is a $2,500 increase from last year's contribution, but a match from what the YMCA spent on city employee memberships. The Chillicothe Area Chamber of Commerce will receive $3,000 ($1,950 base plus $500 for Community Betterment Awards and $550 decoration assistance). The Chamber requested funds in the amount of $4,450. A new request was made this year by the Freedom Festival for fireworks. The City will contribute $2,000 if KCHI (who has taken full control of the Freedom Festival) can raise the other $4,000. A request of $6,000 was made to the City for the fireworks. The $2,000 was the same amount given to the Chamber last year for the display.

Reserve funds will be used for the Leeper demolition in the amount of $200,000; the Fire Station Expansion in the amount of $452,291; and the Route V bridge replacement/Polk Street project in the amount of $1.5 million. Funds generated from the Capital Improvements Sales Tax will fund the Leeper demolition; new accounting software; a street sweeper and a spreader for the Street Department; runway expansion at the Chillicothe Municipal Airport; and renovations to the Chillicothe Aquatic Center, Danner Park ballfield and the bowling center.

Brookshier commented at the three-hour hearing that he was appreciative of the many hours of work that went into this budget by the department heads and elected officials. He was especially grateful to City Auditor Theresa Kelly and her assistant Jamie Trent in preparing the budget message to the mayor and city council.

Big Changes to Budget
March 9, 2011

Dean Brookshier, city administrator is calling the city budget for 2011-2012 "a cautious and conservative budget." The proposed budget, for the fiscal year beginning April 1, 2011, required many difficult decisions, Brookshier stated. The 2011-2012 budget projects revenues of $11,797,826. Sales tax revenues have been budgeted flat using the same totals as last year. Expenditures are estimated to be $12,847,259.

The expenditures include going into reserves for several projects which include: a one-time payment to MoDOT in the amount of $1.5 million for the Route V bridge/Polk Street project; $200,00 for the Leeper demolition; and $452.291 for the Fire Department Expansion.

A big change to the proposed budget will be to the Advisory Boards. The Airport Advisory Board will be combined with the Railroad Advisory Board and become the Transportation Advisory Board. They will meet quarterly on the same schedule as the current Railroad Board. It will consist of 10 members. When a term comes due, that term will not be filled until the Board gets down to five members. The City is expecting an estimated savings of $1,400 for the combination of the two boards. The Golf Course Advisory Board will be combined with the Parks and Recreation Board, which will still bear the Parks and Recreation name. They will meet every other month to comply with the requirements for the city to be designated as a Tree City USA, which requires a Tree Advisory Board to meet every other month. The members of this board will also be members of the Tree Advisory Board. The original board will consist of 10 members and again, when a term comes due, that term will not be filled until the Board gets down to five members. The City is estimating a savings of $2,800, which is a combined savings of $4,200 for the combination of the boards.

Another big change for the City of Chillicothe will be the proposition of closing down the city-owned golf course two months out of the year, closing down from Dec. 20 through Feb. 20 of each year.
Golf course rates will also increase by $2 a round, a necessary change to make up for their funding shortage. The assistant clubhouse manager position, currently held by Jill Littrell, will be taken from full-time to part-time.

The Chillicothe Streets Department will see the retirement of a full-time employee who will not be replaced but the City has included funds to hire a part-time employee.

A couple of differences will affect the Chillicothe Police Department, one of which included $54,000 for new patrol cars, that has been taken out of the budget. The CPD also requested that the records clerk be changed from part-time to full-time, which was also taken out of the budget.

"This is my fourth city budget," said Brookshier, "and without a doubt, it has been the most difficult." He went on to say that the current economic climate still causes difficulty for all government entities and the City of Chillicothe is certainly no exception to that.