The capital spending is part of a 2017 budget that estimates $43,820,643 in revenue and $43,226,180 in spending. Of that spending, $23,881,569 is in the city’s general fund.
Income tax collections in the city were “good” during the past year, making city leaders optimistic a 5 percent increase in 2016 collections would be confirmed when final budget numbers are available, said Rich Hopkins, city communication manager.
Among major capital projects planned is the purchase of a new fire engine expected to arrive in the first quarter. The cost is $485,000. A new medic unit sporting a heavy-duty truck chassis also is among planned purchases at around $235,000.
The annual street resurfacing program carried out since 2005 with a 0.50 percent income tax approved by voters, will cost between $400,000 and $500,000. The program calls for work on 15 to 20 streets and includes milling of worn surface.
Hopkins said the city has a formula to identify those streets most in need of work each year. “This has been a very successful project for us, and we’ve come a long way over the past 11 years in keeping our infrastructure in good condition,” he said.
Looking ahead, the city keeps a close eye the level of outside funding it will receive following “substantial cuts” from the state the past couple of years, Hopkins said. Income was lost due to changes in the local government fund and the estate tax.
The cuts aren’t over, with the city bracing for additional loss of income with changes stemming from House Bill 5.
Hopkins said the city likely would see the biggest hit coming from changes in how a business’ net operating loss is handled. Previously, a business was required to use a net operating loss on its current city return.
“Effective Jan. 1 that loss can be spread over a five-year period. This will very likely mean income tax collection will decrease as businesses will be able to more strategically apply losses for a more favorable tax impact,” he said. “This means one bad financial year for a business could mean up to five years of decreased income tax collection for the city.”
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