Analysis: Pell City’s 2016 budget possibly answers this question and others

With new ideas at the table, Pell City leaders said this year’s budget was more difficult to reach agreement on than those its produced in years past. But the outcome of multiple hearings and an arduous, line-by-line review of revenue and expenditures has provided this administration with a $22.3 million plan for the next 12 months.

Answers from the 2016 budget, which takes effect Oct. 1, include:

Who’s getting a raise?

Everyone who works for the City. Well, almost everyone.

The City worked with Jacksonville State University to perform a study in recent years and used its findings to create a “Step” system for employees. In Pell City, there are 18 Steps, and each time an employee climbs one he or she receives a compounding 3 percent raise.

So, for example, if you start Step 1 at $30,000, you’ll hit a ceiling at approximately $45,000.

In this budget, everyone with the exception of new hires and those who have “topped out” at Step 18 will advance. The pay increase will take effect on Oct. 1 and will cost the city approximately $200,000.

The Council elected to forego a Cost of Living Adjustment in favor of the Step raise when it approved the budget on Sept. 22.

Were new jobs created?

Yes – 15 total, and eight are full-time. Those include two in City administration, three in Animal Control and three in the Street Department.

In administration, the City added a purchasing clerk to handle its bid packages. Concerns have been raised on several projects recently that returned bids weren’t competitive. Cost for the position is estimated at $67,000 including benefits.

Both City administration and the Street Department are adding administrative clerk positions. In City Hall, the job will pay about $47,000 with benefits, and the Street Department’s position will pay $33,000 with benefits. The remaining two Street Department positions (including benefits) are a light equipment operator ($44,000) and a heavy equipment operator ($47,000).

Seven part-time positions will also be added, with four for the Splash Pad at an estimated total cost of $37,000. The remaining three positions are in Animal Control.

Is the budget balanced?

Pretty much.

With the Council’s decision to have the Step raise begin Oct. 1 instead of Jan. 1, a decision it made when approving the budget Sept. 22, the City dropped into the red by approximately $50,000. This is a negligible amount against a  $22.3 million total, and the budget in the eyes of the public should be considered balanced.

How much debt does the City have?

More than $30 million total, but the City did something new this year that it hopes will reduce that number more quickly than originally planned. By creating an account for Capital Improvements, the City now has about $1 million set aside for items that previously drained the General Fund — things like new lawnmowers or, well, Splash Pads.

Doing this, City Manager Brian Muenger said, will reduce the need to approach the bond market for financing every time the city has a sizable project. Basically, the City is planning to live within its means when it comes to projects in 2016 and beyond.

Total debt service payments next year are expected to total about $2.8 million — 12 percent of the total budget.

How much will the new Animal Control Center cost?

About $283,000, but it’s projected to bring in $292,000 meaning it could be a moneymaker in the budget this year. The operation is estimated to collect $175,000 in government contracts and about $117,000 in fees in 2016. Compared to the Animal Shelter of Pell City, Inc.’s operation in the facility previously, this represents an increase in impoundment expenditures by approximately $73,000, as ASPCI reported it spent $210,000 on impoundment in 2014.

However, compared to ASPCI’s overall expenditures as reported most recently in the organization’s 2013 tax filing with the IRS, the operation in total cost the organization about $519,000. Compared to this figure, the City’s Animal Control Center represents a 45 percent reduction in expenditures.

What outside organization or agency will receive the most money?

CEPA, easily.

The Pell City Center for Education and the Performing Arts will cost the City approximately $118,000 in FY 2016. But drop the cost of electricity from that allocation — $76,000 — and the biggest recipient will be the St. Clair County Economic Development Council at $58,000.

In total, 20 outside agencies will receive allocations from Pell City next year, including the Greater Pell City Chamber of Commerce, which was awarded $48,5000, a $10,000 increase from the previous year, and newcomer Council of the Arts, which will receive $1,500.

In total, Pell City will appropriate about $400,000 in FY 2016.

What about the Splash Pad? Will it make money?

It’s possible, but it doesn’t look like it. Then again, it was never really expected to.

The Council knew going into the Splash Pad project that the money raised through entry fees could probably come close to matching operating expenditures. In the budget, administrators estimated that more than 11,000 entry fees of $3 would be paid during the 20-week season in 2016.

That revenue is expected to just about cover the cost of the part-time employees ($37,000), but operations and maintenance at the site was budgeted as a $52,000 expenditure. In addition, a full-time employee will be moved from the Parks and Recreation Department to the Splash Pad during the season, and this expenditure is not identified.

However, pavilion rentals at the facility weren’t estimated in the budget either, and those could provide substantial income. Whether it will be enough to cover remains to be seen.

Have a question about Pell City’s FY 2016 budget? Send it in to editor@newsaegis.com, and we’ll do our best to answer it for you.