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City Budget 2017

March 27, 2017 - Chillicothe City Council members unanimously approved the city's 2017-18 fiscal budget following a public hearing Monday evening at City Hall. The overall budget calls for estimated revenues of $13,875,381 to support estimated expenditures of $13,769,974. The budget includes a 2 percent pay raise for city employees. The city's general sales tax is projected to generate $1,243,557 during the next 12 months, slightly over the 2016-17 budget of $1,154,732 and the 2015-16 actual collection of $1,141,164. In approving the city's budget, the council also approved the budget of the city-owned Chillicothe Municipal Utilities. CMU's budget projects operating revenues and other income in the amount of $15,176,803 and operating expenses at $14,614,750, which includes a 4 percent cost of living increase for CMU employees. The city's fiscal year begins April 1.

Shortly after passing the budget Monday evening, the council unanimously approved all of the annual ordinances and contracts as presented: YMCA ($14,500), Livingston County Humane Society ($6,025 monthly, plus cat and dog license fees with adoption fees and animal control fines received by the city), Summer Playground Association ($13,000), Main Street Chillicothe ($30,000), Chillicothe Area Chamber of Commerce ($5,300), Chillicothe Area Arts Council ($2,000), University of Missouri Extension Center ($5,000), and OATS public transportation service ($10,000). The dollar amount and scope of services for each of these contracts is the same as last year's approved contract amount. The budget includes the following fund amounts:

General Fund $6,996,358
Police Education 1,250
Park Fund 598,935
Street Fund 1,211,052
Permanent Street Fund 836,381
Capital Improvement Fund 1,914,500 Mo.
North Central Railroad 39,500
Fire Department Equipment Tax 271,928
Golf Course 289,304
Tax Increment Financing 956,480
Airport State Block Grant 200,000
Revolving Loan Funds 43,000 911
Dispatch 411,286
Total All Funds 13,769,974

The council on Monday also passed an ordinance regarding a contract with Adam Warren for prosecuting services (ordinance and nuisance enforcement) and with Rumery and Associates for economic development services. Warren, who also serves as the Livingston County prosecuting attorney, has contracted with the city for the last six years with no changes in the terms, conditions and compensation in his contract. This year, he requested and was granted a $1,000 (approximately 3 percent) increase to cover a pay raise for his office staff and increased office expenses. The contract amount is $37,600 per year, with the contract to extend through his term as Livingston County prosecuting attorney, December 31, 2018. The contract with Rumery & Associates is for $36,000 and will be split equally among the city, FEC Development, Inc., Chillicothe Development Corporation, and Chillicothe Municipal Utilities.

March 13, 2017 - Chillicothe City Council members continued budget work Monday evening and unanimously supported a plan that would reinstate pay raises for city employees. Raises looked doubtful when the preliminary budget draft was presented to council members during a budget workshop a week ago; however, a reallocation of general sales tax revenue will allow for the raises. In the 2016-17 budget year, 65 percent of the city's general sales tax was set aside for the general fund and 35 percent was set aside for the street fund. What the city has now proposed is 70 percent going to the city's general fund and 30 percent going to the city's street fund. By doing this, the projected sales tax revenues for the general fund will increase from $1,155,000 to $1,244,000 and free up funds to give city employees a 2 percent pay raise. The reduced revenue for the street fund will be more than covered through the use tax, which is anticipated to generate $306,000 during the 2017-18 fiscal year. The reallocation of general sales tax revenues balances the general operating fund, according to City Administrator Ike Holland. Also on the chopping block last week was approximately $100,000 in equipment: body cameras for the police department, a patrol car for the police department, weapons replacement for the police department, picnic tables and benches for the parks, ball park improvements, playground improvements and $12,000 set aside for the demolition of dilapidated houses.

After the new figures were presented on Monday, these items also were put back into the budget. Funds will come from money generated through the sale of property - largely a tract of land sold to Skillpath, the sale of the Wabash railroad depot, and vehicles that were traded in last year. The city had a lease purchase agreement for the Wabash railroad depot with Wabash BBQ that came due last year, at which time Wabash BBQ exercised the option to purchase the building. Funds from the sale of property had not been appropriated in the preliminary budget draft. Now, these funds are going to be set aside for the purchase of equipment. The only item now on the list of cuts from last week is that of a truck for the street department.

The city's 2017-18 fiscal year begins April 1. A public hearing on the budget will be at 6:30 p.m. Monday, March 27, in the Council Chambers at City Hall.

March 6, 2017 - The Chillicothe City Council held a budget workshop at 6 p.m. March 6, 2017, in the council chambers at City Hall. The council will review the overall budget and funding requests from entities with which the city contracts. The city is considering $13,601,842 in proposed expenses; and $13,847,022 in proposed revenues. The city's fiscal year begins April 1.

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