2010 Budget Highlights
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On September 28, 2009, the City Council adopted its fiscal 2010 budget. The budget reflects an $273,000 General Fund surplus, a $6.4 million Capital Project Fund deficit, and an overall deficit of $5.8 million. The Capital Project Fund deficit is the result of the City spending some of its accumulated reserves for capital projects which include, but not limited to, the following:
| Project Description |
Grant
Proceeds |
Capital
Outlay |
Net Cost
to City |
Watkins Branch Flood Hazard
Mitigation Project in Mountain
Brook Village |
$4,375,057 |
$6,233,696 |
$1,858,639 |
Municipal complex (design and
relocation of utilities) |
-0- |
3,000,000 |
3,000,000 |
Relocation of the Park Board offices
at the high school |
-0- |
2,200,000 |
2,200,000 |
| Village sidewalk projects |
800,000 |
1,142,825 |
342,825 |
Public safety mobile communications
systems |
-0- |
425,744 |
425,744 |
The budgeted General Fund revenue for 2010 is $29.7 million compared to $31.4 million for 2009--a decrease of 5%. The decrease in revenue is attributed to the following:
| Revenue Source |
2010
Budget |
2009
Budget |
Increase/
(Decrease) |
| Real estate taxes |
$13,513,000 |
$14,824,000 |
(8.8%) |
| Sales tax |
7,600,000 |
7,760,000 |
(2.1%) |
| Business licenses |
1,829,903 |
2,030,000 |
(9.9%) |
| Construction permits |
567,500 |
617,408 |
(8.1%) |
| All other |
6,626,118 |
6,744,393 |
(1.8%) |
The City’s actuarial accrued pension liability as of September 30, 2008 (the last accounting available from the Retirement Systems of Alabama) totaled $8.7 million excluding unamortized investment losses of $6.2 million. The City’s budgeted annual required contribution (ARC) for 2010 is $1.2 million (or 9.06% of covered payroll).
Other budget highlights include: |
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Labor costs (salaries and benefits) total $18.4 million (62% of General Fund expenses). Aside from employees eligible for merit pay increases, no pay raises will be granted in 2010. |
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$200,000 is to be deposited into an irrevocable trust [created in 2009] to be used for post-employment medical benefits. Cumulative deposits into the trust through the end of 2010 will be approximately $400,000. The actuarial accrued liability for post-employment medical benefits as of September 30, 2008, totaled $2.9 million. |
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Medical premiums will increase 10% in 2010 (the City will pay all of the increase.) Medical premiums to be paid by the City and employees/retirees in 2010 total $1.7 million and $515,000, respectively. |
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$2 million will be transferred from the General Fund to the Capital Projects Fund for the eventual replacement of property, plant, and equipment. |
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The waste disposal contract fee totals $2,580,000 for 2010. The contract expires September 30, 2010. |
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