A tentative budget of $6,981,008 for fiscal year 2016-17 was approved last week by the Taylor Town Council.
Town Manager Gus Lundberg presented the tentative budget to the council, stating, “It is required by law to create an overall legal spending authority limit.”
He explained that through the year they could move things around a little within the categories, but they must approve a budget limit, which cannot be exceeded. The fiscal year 2015-16 budget totaled $6,123,095.
“I made very minimal operational adjustments,” said Lundberg. “Obviously, every year things seem to go up.” He said there were no major personnel changes as far as additional staff or additional costs to benefits, but adjustments were made in various departments.
The largest departments are for police, and fire and medical services, said Lundberg. He noted that Taylor’s portion of the police budget increased from $840,645 to $842,108. He further explained that the police budget shows Taylor’s portion only, because Snowflake handles the day-to-day operations of the department, but because Taylor handles the day-to-day for fire and medical, the budget reflects the total costs, which increased from $1,125,000 to $1,236,250.
“We made some significant changes with pretty nominal increase as far as out of pocket goes,” said Lundberg, explaining this will give them a second team of three fulltime positions, enabling them to staff Station 2 in Snowflake 24 hours a day, seven days a week. Previously, Station 1 in Taylor was staffed 24/7 and Station 2 was staffed during the day.
Lundberg noted that a large percentage of the budget is offset by ambulance fees they collect, as well as Snowflake’s portion of the costs.
He pointed out that at the June meeting, the council approved increased revenue to fire and medical of $100,000 because revenues had increased. The budget revenue was set at $550,000 and it was increased to $650,000. Lundberg said that looking at final numbers, it is up to $700,000.
“They have been busy,” said Mayor Fay Hatch.
Lundberg offered kudos to Fire Chief Clint Burden for bringing the fire departments together.
This year’s budget also includes $700,000 in the contingency fund, up from $600,000 last year. The contingency fund is set so that if the town receives more revenue than anticipated, it is able to spend it.
Lundberg said he estimated the sales taxes rebate low at $460,000, including Walmart. Since this will be the first year the town receives sales tax from the new store, he set the amount low, but increased the amount of the contingency fund.
Councilman Lynn DeWitt asked Lundberg if he could see what effect Walmart has had on other businesses, expressing concern for smaller businesses in the area.
“I will continue my shopping habits,” said Councilman Jason Brubaker. He explained that he purchases from the smaller businesses and buys items that he would have gone to Show Low for from the Taylor Walmart, so now those taxes will come to Taylor.
Lundberg said that he could not give numbers for a particular business, but he could give category numbers, and will put something together for the council.
Continuing with budget explanations, Lundberg said he budgeted $100,000 for flood mitigation.
The water and sewer budget remained the same as last year at $431,000 for water and $590,000 for sewer. Lundberg noted that at the rates they are charging, there is no money for repairs, such as the two pumps they had to replace for sewer. He suggested that at a later date they discuss a possible increase to sewer and water rates.
The gas tax, or Highway User Revenue Fund (HURF) is showing a pretty good increase, according to Lundberg. He noted that they have reserves in the street department funds, but those can go pretty quickly with one project.
There was a slight increase in grants, because they are working to prepare for another $400,000 to $500,000 project at the airport with entitlement funds from the Federal Aviation Administration to install runway lighting.
The council unanimously approved the tentative fiscal year 2016-17 budget, not to exceed $6,981,008.
“Don’t expect us to come too close to that (the total budget),” said Lundberg. “We do oversee a lot of things in the town.”
“We appreciate that, and we appreciate everything you do there. I know our budget and finances are in good hands,” said Mayor Hatch.
In other business, the council held a 30-minute executive session on pending and potential litigation associated with the Little Colorado River Adjudication and other legal issues regarding the town’s water supply. When the council returned to regular session, no comments were made or action taken on those issues.
Lundberg gave a brief manager’s update and the meeting was adjourned.
