CityofSelma2018 Mayor’s Budget Summary Narrative Notes The annual budget serves as the foundation for the City’s financial planning and control. All departments submit departmental budget requests to the mayor's office. The requests are the starting point for developing the proposed budget. Once the requests are submitted, Department heads and senior staff meet collectively to review all requests. The proposed budget is formally presented to the City Council. The operating budget includes proposed expenditures and revenues. The City Council schedules Public hearings on the proposed budget. The budget is then legally enacted through adoption on a budget resolution by the City Council. The budget document is a written plan that provides the financial basis for implementing the City’s vision and related goals. It represents the Departments’ best efforts at achieving the vision within an environment of competing goals and limited resources. General Fund Revenues: Property Tax Information: Assessments continue for current Ad Valorem Taxes. Total Ad Valorem taxes collected FY16 $3,476,792.45. Funds were allocated as follows: $1,521,309.74 to SelmaCity School Board, $954,041.50 to the Bond Fund, $1,001,441.21 to CityofSelma General Fund; Total Ad Valorem taxes collected FY17 taxable assessment was $3,435,983.49. Funds were allocated as follows: $1,502,689.71 to SelmaCity School Board, $942,364.56 to the Bond Fund, $990,929.22 to CityofSelma General Fund; Total Ad Valorem taxes projection collection FY18 taxable assessment is $3,421,708.37. Funds will be allocated as follows: $1,506,096.64 to SelmaCity School Board, $944,501.09 to the Bond Fund, $971,110.64 to CityofSelma General Fund. Business License Collection of Business licenses for FY16 was $2,860,252.08; the FY17 license collection was $2,642,121.55, decrease of $218,130.53 from FY16, decrease of 8%; FY18 license collection projections are $2,589,279.12. This is a decrease of $270,972.96 from FY16, 9% decrease; a decrease of $52,842.43 from FY17, a 2% decrease. Over the last three years business licenses have decreased. Sales Tax Sales tax revenue collections are down from 2016 and 2017. We are heavily reliant on sales tax revenue, yet the economy and collections remains uncertain. Sales taxes remitted in FY16 was $9,812,749.05; half cent sales tax was $1,228,702.59; FY17 sales tax was $10,289,000.41; half cent sales tax was $416,073.19; FY18 sales tax projections $9,336,965.19; projected half cent sales tax $1,154,006.93. Sales tax revenue budget has decreased over the last three years. The economy remains unsettled and continues to have an uncertain impact on the 2018 sales tax activity.
Other Revenue Other revenue amounts continue to be adjusted to realistic, historic and current trends; grants reimbursements FY16 $1,000,513.23; FY17 reimbursements $819,971.63; FY18 grant reimbursements totals $1,463,672.20. Grant reimbursements has nearly doubled for FY18. Total Revenue Total Revenue for FY16 was $18,531,458.49. Total Revenue for FY17 was $17,395,468.50. Projected Revenue for FY18 is $17,948,005.88. General Fund Expenditures: Total General Fund expenditure for 2016 expenses were $19,191,281. Total General Fund expenditures for 2017 expenses were $17,661,091, down $1,530,190 from 2016, a 8% decrease; 2018 expenses are budgeted at $17,749,411, up $88,320 from 2017, a half percent increase. Expenditures increased in FY18 due to Bond Payment and mandatory landfill requirements. Other Service Agencies: City local share for other community service agencies is not funded in 2018City Departments: All department costs reflect a 30% reduction in operation cost; also other accounts adjusted as needed City Department’s budget funding for 2018 are noted as follows: City Clerk: Fund Administrative assistant position; Building Department: Omit Building Assistant Position; Public Service: Recreation, Public Building, Code Enforcement, Public Works, Cemetery, Departments merged to create Public Service Department; One Director will be leading the overall Public Service Department; leadership will be shared by converting Director positions in individual departments to managers positions. Note: Mayor reducing appointing powers by making managers merit employees. Inert Landfill: fund mandatory construction landfill cells 4&5 Fire Department: New World software; funded two fire investigators Personnel Department: Fund General Specialist position IT Department: Fund network specialist; Public Relations Officer transferred from Mayor’s office Layoffs/Staff Reductions/Staff Increases No layoffs in the 2018 budget; 27 positions that were vacant were omitted from the budget. We continue to look at operational efficiencies to reduce overall costs. In 2018, we are including funding for the following new positions; Two Fire Investigators, Network Specialist, General Specialist, Several seasonal accounts were adjusted Fringe Benefits: Health insurance costs continue to increase, and regular employee retirement costs are level; general liability insurance increased.