Planning for repayment; Alva budgets adopted for next year
June 19, 2020
After holding a public hearing on budgets June 8, the Alva City Council passed Resolution 2020-003 adopting the General Fund budgets for FY 2020-2021 on June 15. Other budgets were adopted in the authority meetings that followed.
Interim Business Manager Angelica Brady wrote that the anticipated revenue stream for the next fiscal year is $12,135,177 and includes $1,068,138 in inter-fund transfers. These transfers are either required by ordinance or to allow funds to operate as intended. Once the transfers are removed, the city anticipates revenues to be consistent with monies received in FY 2019-2020. However, the city does plan to see an increase in ambulance revenue this year. Staff is currently researching and evaluating new billing companies in an effort to increase money collected for the EMS service.
The Alva Utility Authority anticipates a decrease in revenues for FY 2020-2021. This is primarily due to the reduced amount of loan revenue. A decrease is projected in revenue from the charges for services category.
The expenditure plan for FY 2020-2021 matches the revenue and allows the city a surplus of $241,000. This projected surplus is an effort to begin repaying the borrowing of restricted funds which was revealed by the FY 2018-2019 audit. Personnel expenses are approximately 35 percent of expenditures across all budgets. No COLA or step increases are planned for current employees in the FY 2020-2021 budget. The city will also implement a hiring freeze and not refill any current open positions.
Staff has been asked to make cuts in materials and supplies expenses as well as other services and charges. All travel and training has been cut from the budget.
Only capital improvements that are grant-funded will be completed in the upcoming year. Plans are to complete $1,565,395 in capital improvements in FY 2020-2021. These would use the remaining 2018 loan revenue, FAA and CDBG grant funds as well as donations.
“There will always be room for improvement, and we should continue to strive for improvement not only in the services we provide but also in clarity of our budget processes,” wrote Brady. “The City continues to work with its retained auditors and financial advisors to improve its financial position and eliminate deficit positions reflected in past audits.”
All council members were present for the regular June 15 meeting. The renewal of the city’s workers compensation insurance with Oklahoma Municipal Assurance Group (OMAG) was approved. The premium of $131,552 for FY 20-21 is less than the previous year’s amount of $136,327. In addition, the city has an escrow credit of $8,039 which will be used toward the premium.
An executive session was held to discuss employment of a city business manager and negotiations with the firefighters’ union. Following return to open session, the council voted to hire Angelica Brady who had been serving as interim manager (see separate story). No action was taken on union contract negotiations.
The council approved minutes of the May 18, June 1 and June 8 meetings along with claims of $103,838.87 and payroll expenses of $169,121.69.
Alva Utility Authority
Following council adjournment, the same individuals met as the Alva Utility Authority. Trustees approved minutes of the May 18 meeting, claims of $64,766.01 and payroll expenses of $52,402.59. The trustees also approved Resolution 2020-004 adopting the Enterprise Fund Budgets for FY 202-2021.
Alva Economic Development
The Alva Economic Development Authority then met. They approved minutes of the last meeting, claims of $266,558.05 and payroll expenses of $11,796.13. The trustees also approved Resolution 2020-005 adopting the Alva Economic Development Authority Fund Budgets for FY 2020-2021.