Amending the current fiscal year budget earlier in the year revealed structural deficits, according to Shaffstall.
“Previous budgets included overestimated revenue projections and use of fund balance reserves to balance the budget,” Shaffstall wrote. “A tremendous amount of time and energy went into ensuring that the budget is balanced using current revenues to cover operating expenses.”
In addition to making sure revenues exceed expenditures, staff said an effort was made to match sources of funding so one-time revenue sources went to one-time expenditures, such as capital improvement projects.
Property tax revenues of more than $1.5 million make up approximately half of the $3 million general fund budget projected revenue. Sales tax revenue is also projected to bring in about $680,000. Other revenue sources, such as franchise fees and development fees, make up the remaining portion of the budget.
Under the adopted budget, city employees would be eligible for a merit-based raise of up to 5 percent.
Several departments have also been restructured. The costs and time for a formerly full-time employee in utility billing will be split part-time between two departments. A work crew position was cut from the Public Works Department and schedules shifted to save the city approximately $34,000, while the Development Services Department has the hiring of a department director budgeted, with third-party plan reviews and inspection services continuing.
Under the general fund budget, the city is trying to take on $150,000 in street improvement projects but has another $150,000 in capital projects that are needed, according to information presented to the council.
The budget did not allow for major capital purchases, such as replacement of city vehicles.
Water and wastewater funds
The adopted budget also begins to separate the water, wastewater and solid waste utility service funds, which have often been treated as the same fund in prior years, according to city staff.