Smithville Aldermen approved on first reading the $6.4 million budget plan for 2017-18 Monday night.
The spending proposal totals $6,411,679, with the city tax rate remaining at 64.9 cents per $100 of assessed value.
Water and sewer rates, however will increase on July 1. Water rates for customers in the city will go from $5 per thousand gallons to $7.25, and their sewer bill will increase from $5 per thousand to $6.75, plus a flat usage rate of $3.62. Customers outside the city limits will pay $10.88 per thousand for water, up from $7.50.
Officials said the $775,000 loss in revenue resulting from DeKalb Utility District being lost as a customer necessitated the increases.
Smithville’s water and sewer fund is projected to end the fiscal year on June 30 with a $242,179 surplus. The utility is expected to barely break even despite the rate increase. In addition to the loss of the DUD, the city is conducting a rehab of the sewer plant project which will cost a total of $2,790,000.
A Community Development Block Grant in the amount of $525,000 will pay for part of the cost of the project, most of the funds will come from the water and sewer fund.
The spending plan includes $40,000 for a two percent cost of living pay raise for all hourly and salaried employees except for the police department. Christmas bonuses will be based on longevity, with $250 budgeted for employees with up to five years of service, up to a maximum of $600 for more than 20 years. The city previously gave bonuses at one percent of an employee’s salary at Christmas. The move will save the city $2,000.
There are $925,945 in proposed capital outlay expenditures in the general fund, $725,945 of which is earmarked for a fire pumper/rescue truck. Three used police cars and a used investigator’s car are budgeted for $85,000
The budget includes $50,000 for repairs at city hall. The lion’s share of those funds will go to repair the elevator in the building after it was recently struck by lightning and rendered inoperable.
There is $15,000 in the budget to add side loaders to garbage trucks for the city’s new street side automated side loader garbage collection system.
Funding in the amount of $2,000 was included for software and handheld scanners to process water bills more effectively.
The city’s contribution to the Smithville-DeKalb County Rescue Squad will increase from $1,500 to $2,000.
The city is projected to end the fiscal year on June 30 $640,150 in the hole due to the purchase of a new garbage truck and containers at $350,000, the city’s part of the cost of building the new Holmes Creek Bridge, $111,485, and $350,000 spent paving streets.
The mayor and aldermen will conduct a special meeting on June 19 to vote on the budget on second and final reading.
