New city budget maintains tax rate, raises water rate

A full board meeting of the city board was called at 9 a.m., on Friday, June 26, in the upstairs conference room at City Hall to adopt the city budget for the fiscal year, which began on Wednesday, July 1.

As economic conditions worsen, the city of Dyersburg will tighten its belt a little more within the next fiscal year. For the past several months, members of the Finance Committee have met regularly with department heads, city employees, Mayor John Holden and City Treasurer Steve Anderson to create a balanced budget reflecting $50,000 less in revenue and maintaining the same level of service for residents within the city limits.

To reach that goal without laying off city employees or cutting city services was quite a challenge.

At the beginning of the process, requests for the upcoming fiscal year totaled nearly $3 million above expected revenues. Items requested spanned from new fire stations to increased funds for office supplies in departments throughout the city.

Anderson, Mayor John Holden and department heads worked diligently to lower that deficit to $203,550 before the Finance Committee took a detailed look at the budget again in the week prior to the regularly scheduled June 22 board meeting.

Finalizing the budget took a little more time, however, and board members were not able to pass it at the June 22 meeting. Instead, Holden, Anderson and department heads made the finishing touches to address the deficit and balance the budget. A called meeting of the full board was held last Friday morning to adopt a balanced budget for the new fiscal year.

Highlights of the new budget include:

* maintaining the property tax at $1.99

* no cost-of-living raises for city employees. Step raises will be awarded as earned.

* continuation of the city's self-insured health care plan with no increase in health care costs for employee coverage. The city received a small decrease for the self-insured and re-insurance costs and administrative costs will remain the same. Claim costs are dependent upon actual claims filed and paid. Adjustments were made to the out-of-network deductible and out-of-pocket maximum and co-payments for name-brand and preferred name-brand drugs in order to lower the cost of claims.

* Gas rates projected based upon weighted-average costs and will be adjusted monthly

* a 10 percent increase in water and sewer rates over the rate for the 2008-2009 fiscal year (see related story)

* no change in the rates for refuse collection - rates will remain at $15 for residential customers and $21 for commercial can customers for one time per week pickup

Major capital expenditures included in the 2009-2010 budget -- totaling $1,344,200 -- include:

* $30,000 for a storm-water mapping system

* $50,000 to replace the roof on City Hall

* $22,500 for one set of rescue/extraction equipment

* $112,000 for Diesel Exhaust Systems for fire stations one and three-(95 percent funded by grant)

* $50,000 for a new road at Fairview Cemetery

* $177,000 to pave Frank Maynard Boulevard (80 percent funded by grant)

* $447,500 to install traffic signal at Mall Boulevard and Parr Avenue (80 percent funded by grant)

* $445,000 for a new runway lighting system at airport (90 percent funded by grant)

"We feel like we've got a good budget," said Finance Committee Chairman Lewis Norman at Friday morning's meeting. "The tax rate will remain the same. It's a tight budget and we challenge department heads as we go through the fiscal year to continue looking for ways to save money."

"We maintained the same tax rate, but we are increasing the water rate by 10 percent," said Finance Committee member Bob Kirk. "It needs to be noted that for this enterprise fund to work properly, (it must be balanced)."

"It is no secret what is going on in this city," said Holden, who said running a city is much like running a business, struggling to cut expenditures while still providing services for customers and maintaining jobs for employees. "Obviously, there is not a salary or cost-of-living increase (this year) but we did not have to lay off any employees."

Holden pointed out that officials have been streamlining the city's work force as employees retire and leave on their own accord. The city has approximately 37 less full-time positions than it did at the beginning of 2007.

Other changes to reduce city expenditures have also been implemented throughout the year including cross-training city employees, refinancing bonds and changing methods, materials or technology to reduce costs like spraying the cemetery instead of weed eating and buying bleach in bulk and distributing it to city pools.

Norman moved to adopt the 2009-2010 budget and asked for a roll call vote. Kirk seconded the motion.

The motion passed 7-0 by board members present.

Holden, Norman, Kirk, Kevin Chaney, Freeman Dudley, Charles McCright and Bart Williams each voted in favor of adopting the new budget.

Aldermen Dennis Moody and Shannon Walker were not present at the meeting.