City budget copes with revenue shortfalls

The Blakely City Council held a budget hearing Nov. 18 at the City Annex for the public to discuss the city’s 2010 proposed budget.

The proposed budget is $17 million compared to last year’s $15.4 million budget, and includes $2.6 million in CDBG grants and GEFA loans for city projects.

The city’s actual operating budget is decreasing by approximately $1 million from $15.4 million to $14.4 million and includes a three percent cost of living raise for the city’s 64 employees.

Mayor Ric Hall provided an overview of the budget, pointing out that the budget reflected a decline in projected revenues.

Most department’s budgets reflect a decrease in spending. The fire department came in $22,000 lower and the city shop $15,908 under last year. Decreased fuel prices, especially compared to FY 2008, account for some of the projected decrease in expenditures.

The street department is projecting a decrease of $10,000, although the cost of mosquito spraying has increased by $20,000 and projected overtime increased $3,000. Overtime is usually due to storm damage and special events requiring additional city crews.

The electrical department budget reflects a $247,000 decrease, primarily due to MEAG’s projection of decreased power purchases. Power costs have increased, but the city is anticipating purchasing less power due to decreased customer demand.

Water and sewer customers can expect a 50 cents increase per tier and no water increase. The overall budget decrease for the department is $285,000 and reflects savings from extensive infrastucture work undertaken the past several years.

Water pollution control expects a $75,000 decrease in operations, also due to upgrades to the system.

The biggest portion of the gas department’s $508,000 budget decrease is due to a projected decrease in gas purchases. The loss of Peanut Corporation of America as a customer impacted sales for the department and the decrease in operation reflects that loss.