On Nov 13, the Holbrook City Council held a public meeting regarding the alternative expenditure limitation, or Home Rule Option. This item comes up for consideration every four years for the council to approve in order for it to be placed upon the May ballot for consideration. If approved by the voters it would continue for an additional four years.
If voters approve the Home Rule Option, it is estimated that the city would be allowed to expend revenues of approximately $18 million in 2019-20, $18.8 million in 2020-21, $19.8 million in 2021-22 and $20.7 million in 2022-2023.
Under the state limitation, with allowable exclusions, the city estimates it would be allowed to expend approximately $15.9 million in 2019-20, $16.4 million in 2020-21, $16.8 million in 2021-22 and $17.3 million in 2022-23 for operation of city government.
According to Finance Director Randy Sullivan, “If that passes, that allows the city to spend what they say they’re going to earn. So say, if we earn $15 million then we balance the budget and spend $15 million, or less.”
He explained that with the state-imposed calculations the city would not be able to utilize all its revenues. “Whether your revenues are more or not, that’s where you are cut off,” he said. Sullivan explained that the state formula is derived by the 1978 population count multiplied by the population projection, then that population factor is multiplied by the inflation rate.
“When we start the budget process and this goes to ballot, I have that balanced out. What the state is saying we would be able to spend versus what we say we are going to spend.
For example he said, in 2018-19 the city budgeted $10.3 million. If the city was to go by the state imposed limit, the most that could have been spent would have been $6.9 million, plus $2.7 million in exemptions and would have fallen short $640,000.
Sullivan stated, “It allows the council and the city to spend the money as we see fit, not the state.”
Councilwoman Francie Payne wanted it clarified that the measure would in no way affect the citizens financially. “Just to make it clear, we’re not asking people to spend any more money. We’re just asking to spend what we do have.”
Sullivan stated that was correct, expenses are set to match revenues, not the other way around. If the measure failed to pass, any extra revenues taken in by the city would go into savings and unable to be spent unless the Home Rule Option was passed in later years.
Yesterday, the council held the second public meeting prior to their regular council meeting. The public made no comment during the initial meeting.
