Alva sales tax collections at 2010-2011 levels

 

September 25, 2016

Alva sales and use tax collections for a three-year span are shown in this graph.

With city sales and use tax revenues falling to the level of about six years ago, the city council and staff are understandably cautious about spending money.

Two months into the fiscal year budget, a comparison of the City of Alva revenues and expenditures appears daunting. For July and August the city revenues total $1,683,000. One-sixth (2 of 12 months) of the year's budgeted revenue is $3,416,000. Actual revenue compared to budgeted revenue shows a 51 percent shortfall.

Meanwhile, expenditures in the first two months total $2,426,000 compared to the two-month average of budgeted expenditures of $2,119,000. That's 14 percent more than budgeted.

In his report to the Alva City Council Monday, Business Manager Joe Don Dunham stated, "Staff is monitoring the revenues and expenses very closely. Staff is going to be required to make the best of the budget dollars they have been charged with. The two months of operation is heavily weighted in one-time expenditures, which will diminish as the year progresses."

He pointed out that Alva has been able to handle the revenue decrease so far without employee furloughs and lay-offs. "The most valuable resource which the City of Alva has is the employees who work here," he said. "The budget for FY 2016-2017 is achievable but it will take the effort of every team member."

The majority of the revenue shortfall is in sales and use tax collections. During the first three months of this fiscal year, those collections have been comparable to the FY 2010-2011 levels, Dunham said.

On Aug. 31, the balance of all Alva cash accounts was $2,177,421 with another $2,568,874 in investment accounts.

General Fund

Through August, the city's general fund collected $1,002,840. During the same time, general fund expenses or obligations totaled $1,409,340. Of that amount, $321,090 was for transfers to the Alva Hospital Authority or other city funds. The majority of the expenditures were for personnel services, materials and supplies, and other services and charges such as insurance and professional fees. During July and August, the city spent $56,567 in capital improvements and $21,182 in debt service payments.

Utility Authority Fund

In the first two months of the fiscal year, the utility authority fund accrued revenues of $492,934 from operations. Expenditures and obligations for the same time period were $457,014, of which $381,864 was for operations of the utility authority. Another $56,200 was transferred to other funds for their operations. They spent $16,420 for capital improvements and paid debt service of $51,573.

Other Funds

Other major funds of the city are the airport fund, cemetery fund, Alva Economic Development Authority fund, and the Street and Alley fund. The combined operational revenues from these funds are $144,942 while operational obligations and expenses are $559,434. The deficit is balanced out with transfers from other funds, mainly the general fund and utility authority fund along with the expenditure of funds which were collected in prior years.

Project Updates

These graphs show City of Alva revenues and expenditures for a three-year period plus the amount budgeted for this year.

Dunham gave brief updates about ongoing projects. The city is working on bid documents for the concrete foundation and ramp to be in place before T-hangars are constructed at the airport. The city is also working to get the site staked for grade.

Street crews have completed all the asphalt overlays they can do this calendar year. Weather permitting, they will be working on chip sealing some streets and making other repairs. Dunham said the next project would be on Seiling Street.

The Alva EMS is doing a "vials for life" project. They handed out vials at the Woods County Fair to encourage people to enclose their medical information and place it in their home freezer where emergency responders can easily find it.

Dunham also told the council he received notice of an 0.84 percent increase in the Waste Connections contract where the city takes waste materials (sanitation) to a landfill.

 

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