Today's Feature
Transfer
of Funds.
The Budget Ways and Means
committee met Wednesday evening in City Hall for
a budget report from the Carthage Water &
Electric Plant. CW&EP General Manager Bob
Williams was present to discuss their upcoming
projected budget for the fiscal year beginning
July 1, 2004. Williams reported that a transfer
of funds in the amount of $1,267,488 will be made
to the City, which represents 6.8% of the total
operating revenue.
CW&EP will fund Economic
and Community Development $75,000 which includes
$42,500, which is matched by City funds, for the
Economic Development Director. The City receives
a 30% discount on electrical rates, expected to
lower the annual cost by approximately $79,500
and a 50% discount in rates for street light and
traffic signals, saving the City $61,500.
CW&EP has a financial incentive reserve of
$100,000 to be used to reimburse developers of
plotted subdivisions for a portion of the cost to
run water lines and encourage expansion and
development.
Williams reported that in the
categories of electric and water, projected cash
reserves were adequate. He stated that
communications (internet service) is still short
by $82,435 for the total projected net income.
"We are growing,"
said Williams. "We’re getting more
customers. The amount is good news, because last
year it was $220,000 in the hole, past years were
even more than that. We’re hoping that in
three to four years, communications will be
profitable. There are alot of good things going
on."
Williams explained that
up-front investment in the fiber-optic
infrastructure and installation to provide such
services has been substantial.
Williams announced that
CW&EP was acquiring a video inspection system
for the storm water system. He said they were
receiving the camera and training this week, so
that CW&EP can survey their own system.
"We think it is money well
spent," said Williams. "It will take
two to four years to do the survey, because we
plan to use existing personnel. Each manhole will
be opened and each stretch between them will be
surveyed."
During the meeting, City
Administrator Tom Short reported that the
City’s budget requests exceed projected
revenue.
"We are $219,000 in the
red," said Short, "as is stands right
now, without the culls (items to be cut from
budget)."
Short informed the committee
that he had recently received word from Municipal
Golf Course Pro Shop Manager Mark Peterson that
some items in the course’s projected budget
were missed.
Short stated that part time
help and a lease purchase payment for a rough
mower had been left out of their budget request.
Adding those into the budget, increases their
request by $60,000 for a total of $518,654.
Mayor Kenneth Johnson was
present at the meeting and expressed his
dissatisfaction with the items missed.
"There is no excuse for
that," said Johnson. "They’ve had
all year to work on the budget, there is simply
no excuse."
Short stated that the golf
course is projecting a negative 26.8% in revenues
from what they had originally projected for the
fiscal year 2003/2004.
"We’re $75,000 below
where we should be," said Short. The rounds
are down from the 32,000 we projected. The course
did 36,000 rounds in 2001 or 2002 and we believe
that can be done again."
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