Reprint from the Progress Times - September 19, 2008
©Progress Times 2008 - All Rights Reserved

 

Reduced tax rate

 

By Kathy Olivarez

The City of Alton approved what City Manager Jorge Arcaute called “a conservative budget” for fiscal year 2008-2009 in a special meeting held Tuesday, September 16. Arcaute said that with costs of fuel and other materials rising, it is prudent that the city not overspend because economics are tough.

While total revenues allotted to the general fund in 2007-08 amounted to $3,109,450, revenues of $2,879,414 were budgeted for 2008-09, a decrease of 7.4 percent, or $230,036.

The property tax rate was also lowered by a quarter of a cent. The new tax rate for 2008-09 will be $0.4974 per $100 valuation. This is broken down to $0.3331 for maintenance and operations and $0.1643 for the interest and sinking fund. The tax rate for 2007-08 was $0.4999.

 No salary increases are planned for employees this fiscal year. The budget does add part-time clerical staff for the fire department and the public works department. A new full-time clerical position was added in administration to process passport applications.

Arcaute said travel expenditures have been trimmed along with new equipment purchases. Because of the investment made during 2007-2008, there should be little need for new equipment purchases in the upcoming fiscal year.

 Notable projects for the year include the EDA sewer project, the new public works building, and a storm drainage project for Shary Woods, and continued planning of the EDAP II project.

            In the general fund the highest revenues the city projects for 2008-09 include $554,060 property taxes, $241,700 in sales tax receipts, $468,000 in garbage fees, $189,000 in subdivision fees, $140,000 for recording vital statistics, $394,929 for police fines and $284,004 for fire calls. All other sources of revenue amount to less than $100,000 each.

            Under expenditures, projected wages amount to $990,442, employee insurance––$141,000 and contractual services­­­­––$115,397. Stipends for volunteer firemen is budgeted at $108,000. Electrical services are figured at $158,915. All other expenses are budgeted at less than $100,000 each.

            Increases for overtime are figured at 24.1 percent while Medicare costs are up 17.74 percent. Employee insurance costs will rise 31.8 percent. Mayor and councilmen services will go up 40 percent from $18,000 to $25,500, an increase of $7,200. Judicial services budget will increase 92.9 percent from $15,500 to $25,000. Printing expenses allow for a 424.2 percent increase, and audit services will rise 61.3 percent. Some of the cost increases are to be expected with the new buildings and equipment needs for the growing city.

            Decreases in the budget include a huge drop of 78.9 percent for contractual services. Building repairs drop 51.9 percent. And office equipment drop 92.3 percent.

            Also included in the budget were garbage services at $420,000, a new feature of the budget and service of the city.

In all, the budget approved by the aldermen was lower than the previous budget by $274,136, a decrease of 8.8 percent.

The proposed budget for the sewer fund increased by 26.6 percent an increase of $444,832 from $449,682 to $894,513. Project revenues increased from $1,000 in the 2007-08 budget to $23,115 in the 2008-09 budget.

The budget for long-term interest and sinking fund went from zero in 2007-2008 to $271,568 in 2008-2009, as payments for the new city hall complex must begin.

The budget for the Alton Economic Development Corporation 4A rose 23.5 percent from $97,955 to $120,944, an increase of $22,989. The budget for Development Corporation 4B rose 24.8 percent from $98,000 to $122,344, a difference of $24,344.

The third reading of the proposed sewer bill changes was read. Residential customers will be charged a base rate of $12.75 for all residents having a sewer connection. This will include their first 6,000 gallons of water consumption. Arcaute clarified that the 6,000 was a reduction from the 7,500 gallons that had previously been included in the base bill.

In 2009, the number of gallons included in the base bill will be reduced to 4,500 gallons. In 2010 it will drop to 3,000 gallons, in 2011 to 1,500 gallons and by 2012 there will be no gallons of water included in the base bill.

Customer using 10,000 to 20,000 gallons per cycle will pay $1.44 per 1,000 gallons. For those using more than 20,000 gallons the charge will be $1.59 per 1,000 gallons.

A special rate will be set up to assist the elderly and disabled, who must apply to the city for this special rate.

Base rates for commercial users will range from $15 for one meter to $35 for six meters. Commercial users will pay at a rate of $1.50 per 1,000 gallons of water.

The new sewer rates will take effect October 1.