The Salem City Council was told a number of improvement projects are included in the non-general fund portion of the city’s Fiscal Year 2024 budget.
Finance Director Keli Roth reported overall the total budget expenses are $20,730,571 with revenues of $18,576,155.
City Manager Rex Barbee says the shortfall is covered.
“It’s not really concerning me because of the grant money and that we have reserves and have a tendency to be reserved and cautious on what we show as potential revenues. This year was a good example of that we had more revenues than we had expected. I think expenses have been fairly accurate so we can protect ourselves in that aspect.”
With the water rate increase, Roth says there is no longer a shortfall in the water fund with money to increase the reserves. However, she feels the city should still look at a yearly 2 to 3 percent increase to avoid another large increase in the future. The waste water treatment plant will receive a new roof. The water department will fund about $100,000 of the South Broadway waterline replacement project.
The gas department will see $366,000 for meter replacement on Edgewood Road, Oaktree, and half of Shady Lane and Pine Tree. Repairs will be made to the gas plant roof.
In the Parks Department, money is included for dog park improvements, walking trail, and soccer field as well as getting rock for the parking lot at a shelter and fitness equipment.
The city has budgeted a $50,000 donation to the new soccer complex.
Motor fuel tax revenue will be used on the overlay of North College and North Jefferson as well as curb and gutter replacements on Woodland and Hawthorne.
The half cent sales tax will pay for resurfacing of Kell Street from Route 37 to College as well as College from Broughton to Boone. Another $200,000 will go towards the South Broadway water line project.
Roth reports the tourism fund will receive $60,000 more in funding now that the reimbursement of part of the tax to the Holiday Inn has ended. Business District tax revenue has also increased. 80-percent of the revenue brought in by Denny’s is being given back to them through an agreement. The other 20-percent can be used on improvements to the business district only.
The Salem City Council will be asked to adopt the budget for the fiscal year beginning May first at its next meeting on Monday, April 17th.
