By China Cassidy With the new fiscal year approaching, Holbrook’s City Manager Ted Soltis provided a review of the last year and what to expect for the budget and projects within the city. Outside of everyday operations such as chip sealing and maintaining the city’s aging and deteriorating plumbing system, Soltis was asked for a breakdown of other projects that have been done or planned within the city and how they are prioritized. In the past, Soltis has stated that there is no money for things like improvements at the golf course, to gain a better understanding of how projects such as the fitness center and Machusak Recreational Center modifications that were recently done are prioritized over golf carts. Soltis explained how he makes those decisions by reviewing the revenues that come in from each facility, to determine which projects to proceed with. “In 2019, the fitness center brought in $27,000, so we put some paint and rubber mats down and we didn’t even come close to spending that money. The center brought in money and we used some of that money for upkeep and maintenance.” The center Soltis referred to is the Machusak Recreation Center located across from city offices, which he stated brought in $12,000 last year. “With that $12,000 we bought some paint, maybe some mud and a few other things. So, there’s no planning or anything. It brought in money; the money brought in was used to pay for upkeep.” Soltis was asked for an itemized list of the expenditures for both the Machusak Recreational Center and the fitness center but stated, “There’s not a list like that, we would have to go through each pay period and try to figure that out and that’s not going to be easy. What the list will say is Walt’s (Hardware) and then they take those numbers and they put them under repairs and maintenance. There aren’t separate budgets for these things. It’s going to be under parks and recs.” As far as cost for the mats that were placed in the fitness center, Soltis was not able to provide a number and stated, “I’m not sure what the mats cost, I didn’t pay those off.” When asked if the city council has to approve large purchases for projects the city undertakes, he explained, “There aren’t any large purchases, this is all part of the budget. Those purchases are all part of the budget,” Adding that the budget gets approved and then the funds are used to pay for the projects. When asked if there was a funding limit that did have to be approved by council before being spent, Soltis stated that he believed it to be items over $10,000 but could not be sure. He said that because the purchasing policy is so ambiguous it causes confusion and needs to be rewritten. According to Soltis, each department has its own budget and once the council approves the budget, then he spends the funds approved for that department. “Now, If it’s a major expenditure, yes. Mats and things like that, that’s not a major expenditure, it’s part of upkeep and maintenance.” Although the Hidden Cove Golf Course, which is part of the parks and rec program, revenues were higher than both the fitness center and rec center at $40,000 Soltis explained that wasn’t enough to compensate for the salaries, whereas the fitness center brought in $27,000 but has no overhead so it was all profit for that facility. As far as the golf course, Soltis said there are things in the works. He said he plans to make purchases for the golf course in hopes of increasing the revenues that will allow for more improvements. Those purchases include a new greens mower next fiscal year, along with new golf carts each year to reach the goal of 36. “Every year, we’re buying new things for the golf course. As Steve (the golf course manager) prioritizes and tells me what he needs, we put it in the capital expenditure and the council approves.” As another example, the water department’s Va Con (a sewer excavator) breaks down periodically and their back up is still sitting in Sun Valley broke down as well. So, Soltis was asked how those purchases are prioritized. He explained that each department, in a sense, is responsible to support its needs by the revenue it brings in and that previously, the wastewater and sanitation were bundled together, which should have never happened. “Sanitation is its own business, wastewater is its own business so those have to bring in enough money to pay the bills. In the past, they were blended (and) that should never have happened. I separated them so you could see how each business is doing,” offered Soltis. Soltis further explained that the revenue that comes in from wastewater does not compensate for the salaries in that department. Although Soltis noted that there are two regular employees at the treatment plant, there is currently a chief operator and a plant manager whose salaries total roughly $113,000, which does not include a portion of the water/wastewater supervisor’s salary and the two other water department worker’s salaries at approximately $77,000, or the approximately $34,000 of the administration salaries also being paid from the wastewater department funds. For that department, Soltis said he is anticipating a deficit for this year and the next. “Generally speaking, your fund balances are money that you’re saving for large capital expenditures. We don’t want to use that money for day-to-day expenses. If this projection holds true, we’re in trouble. Our rates are not high enough and we’re not paying enough money; we’re not collecting enough revenues. At the end of 2021 I think we’re going to have about $200,000 dollars in there. That frees up money in other funds for salaries and upkeep and maintenance. Right now, the wastewater fund isn’t there.” Soltis also explained that in the coming fiscal year, he was proposing the sanitation fees paid by citizens be increased. The city is switching trash service from Larson Waste to Waste Management Inc. as the lower bid, but the costs will be higher than the previous year, with residents paying more for administrative costs as well. He noted that the rate structures all need to be addressed. “Rates should be fixed and the flexibility of say, water usage should be very small. Typically, in the old-fashioned way, the flexibility rates are very high. So, half the people go on vacation, we don’t have that revenue, I can’t pay salaries. That’s part of what’s going on right now. You have to have a water structure (and) you have to have a sewer structure that is for 5,000 people and have to have enough for that. “I want to clearly be able to say here’s where this is on the budget. I’m all about transparency and making it easier to understand,” expressed Soltis. Regarding the lodger’s tax, there was concern that the three entities that usually receive $40,000 from the fund would not get it this year. Soltis stated that the money must be used entirely towards tourism. He explained that the money from the lodger’s tax was available and will be allotted to the Chamber of Commerce, the Navajo County Historical Society and the Navajo County Fair Board but he would have liked to have been able to allocate some of that to the economic development director as was done previously for the city’s former events director Kathleen Smith. Soltis has presented the upcoming fiscal year budget to the council and is under review before final approval.
