The Avalon City Council approved a new budget at the agency’s Tuesday, Nov. 5, meeting.
The new budget says that Avalon will spend $1.62 million more than it makes this year.
The budget for Fiscal Year 2013/14 is based on $22,316,694 in revenues and $23,937,949 in expenses.
A staff report said reserves would cover the additional expenses.
The Avalon City Council approved a new budget at the agency’s Tuesday, Nov. 5, meeting.
The new budget says that Avalon will spend $1.62 million more than it makes this year.
The budget for Fiscal Year 2013/14 is based on $22,316,694 in revenues and $23,937,949 in expenses.
A staff report said reserves would cover the additional expenses.
“The $1.62 million is covered by the net of prior year spendable revenue (reserves) of $1,760,347 and $139,092 of current revenue exceeding expenditures in several funds,” said Gina Schuchard in her staff report to the council.
According to Schuchard, the beginning estimated spendabe balance for all city funds was over $10 million as of June 30, 2013, and the ending spendable balance is expected to be more than $8.4 million by June 30, 2014.
Sewer-related matters dominated the new budget. In June, the City Council increased sewer fees and mooring fees.
City Manager Ben Harvey said the sewer system was one of the challenges Avalon faces.
“We’re an old city,” he said.” So it’s also the saltwater infrastructure, it’s also the streets.
He said city staffing levels have remained static for the last several years.
Harvey quoted Mayor Bob Kennedy as saying city costs need to be reduced 7 percent.
“I’d like to trim our costs and increase our revenues,” Harvey said.
He said the Avalon deficit would not be resolved in one year. He said it would be a multi-year effort. As part of that effort, Harvey said he would be meeting with city employees and the employees association to discuss the deficit.
“We want to work with our employees to work out how to climb out of it,” Harvey said.
Harvey said he is not planning to lay off employees wholesale. However, Harvey also said that things cannot remain the same.
“What I like to say is that we need to achieve some efficiencies,” Harvey said.
He said that the city’s budget and infrastructure would be the priorities.
According to Schuchard’s report, the budget includes a long-term financial rate analysis of Avalon’s Sewer and Saltwater funds.
The budget includes:
• About $1.5 million in one-time expenses for the Sewer and Saltwater Funds.
• Resources for lobbying and seeking grants to pay for sewer infrastructure costs.
• The 1.3 million Lower Terrace Project.
• $131,0000 for capital improvements to the Solid Waste Facility.
• $150,000 for the first step in updating a 10-year-old information system
• $6,000 to improve Skateboard Park.
The budget also includes “strict” fines for sewer “hot spots” on private property.
