So we're done with the budget....at least for the moment. I'm thinking there still could be a few adjustments to the budget before the year is up.
But I wanted to let you know where we stand. Mind you for a year I've been saying we're spending to much! It's simple math. More goes out then comes in and we are operating in the red. Well for fiscal year 2011 we are BUDGETING $400,000 in the hole. We're already over $2,000,000 in the hole from the last 2 years, and we're still paying for the promises made by the previous city manager. So why are we having to budget $400,000 in the hole?
Of that $225,000 is going to the expansion of JB Wells to build 90+ slots. Additionally the 2 projects, St. George and a sewer project in district 4 (that is needed) is several hundred thousand..
Now St. George has been mismanaged since day one. It was inappropriately brought up to the council, and what the council was presented with was not what they got. Another words they thought they were getting a turn key project, start to finish, not part one of a multi-part project. The project is needed, but now the cost has gone many times over the initial amount the council voted for. The compromise between business owners and the city saving the city $200,000 will make the street look nice and get it finished finally.
I personally am interested in seeing how the JB Wells expansion is going to work. For the first time since we've started JB Wells (or at least this is my understanding) we are being billed for the primary lines coming in. The cost to us for these primaries? $150,000 + $10,000 for engineering. I'm EXTREMELY excited to think that our city is going to pull off putting the rest of the slots together for a mere $677 each. Because ALL that was budgeted for the entire project was $225,000. We're watching this one closely.
We still have the operations of JB Wells that will make a profit this year, but I'm betting without the trailers we would not. We CAN NOT keep doing business this way, and must learn to get this under control while we can. I have recommended to several of the council members that a non-binding committee needs to be formed that looks at the processes of JB Wells and come back to the council in 3 months with recommendations for them to implement if they feel like they would help. I believe that you take 4-5 business men to look at the operations down there and you'll turn that place around in no time.
Our pet control is $150,000. PET CONTROL!!! No other city of our size spend more than $40-50k. Victoria spends $150,000 for their zoo. Not us, we spend it for cat control. Lots of rumors, and I don't know if they are true or not, but bottom line is this budget item is way out of proportion for our size town and budget.
Now a couple of other things have happened. No more will a handshake be a contract with the city. To many promises were being made that there are no records of, yet we have bills for. Museum work, work in the square, etc etc etc all was promised payment and yet we don't have even a Purchase Order for them. It's NOT the proper way to do business. So I'm thrilled to hear we are changing this in our city procedures.
Did you know that prior to last night the city manager had NO authority to enter into ANY contract for the city? WOW! And yet...oh this is to easy...you know who did it time and time again. Last night the city council authorize the city manager to enter into contracts for budgeted items up to $25,000. Anything over that had to have specific city council approval.
So we're still paying for the sins of the past. And we have best get a few of these items under control or next year we will be looking at serious tax increases and or serious reduction in services. I think we are on the right track, but there is still plenty of work to do. It's not over yet.
I do want to give kudos to the city works department. I've seen more work accomplished in the last 2 weeks than I have in the last year. I'm not blaming the department, I'm blaming the manager that wasn't directing them properly. But it's nice to see things working AND GETTING DONE! Nice job guys!!!
God Bless,
Dennis Nesser
No comments:
Post a Comment