The Salem City Council was told at its meeting Monday night that the proposed $18.6-million budget would allow the city to operate in the black for the fiscal year beginning May 1st.
Revenues are projected to be about the same as last year and City Manager Rex Barbee says department heads were asked to keep expenses down.
“At this point the General Fund with the projected revenues and expenditures we are balanced. That does exclude money we typically take out of reserves to pay for Police Pension Funds that we are trying to catch up on but other than that everyone on staff has done an outstanding job of working with the dollars we offer them.”
The biggest purchase would be $155,870 for a new street sweeper after trade-in. The current sweeper is not operating efficiently. The cemetery budget will increase to cover the cost of a new Zero Turn mower.
The transfer to the police pension fund increased by $26,366. Finance Director Kelly Barrow says that will continue to rise every year until the city hits 90-percent funded which is anticipated in 2040.
Barbee says funding is not included for two projects, the renovation of the former Save-a-Lot building on West Main into the new police station and for the Soccer Complex planned for West Main and Selmaville Road.
“I think for the Soccer Complex, we are looking for some grant monies and fundraising opportunities. We are waiting for the election to be over and we are going to have a planning session with the new council members and if anyone else gets elected we want them included as well.”
Barbee says if revenues come in above expectations there could be some initial work included on the new police station.
The budget will see a reduction since the replacement of the HVAC system and other renovations at Salem City Hall are now complete. All department budgets were figured with a 2.75-percent increase in union contracts.
The city council will review the other city funds at its next meeting on April fifth, with budget approval expected to be on the April 19th agenda.
