The City of West Plains and City of West Plains Utilities have submitted its proposed 2021 fiscal year operations budget and capital improvements plan, which can be found on the City’s website, www.westplains.net/government/.
Overall, City operations (operational and capital spending) is budgeted to end the 2021 fiscal year with approximately $2.4 million (or 85.3 days cash on hand) cash in bank. Utility operations (operational and capital spending) is budgeted to end the 2021 fiscal year with approximately $13.1 million (or 170.1 days cash on hand) cash in bank.
Revenue budgeting for both city operations and utility operations was done very conservatively. City operations is very dependent on sales tax revenue and utility operations is very dependent on the collectability of utility bills. With the macroeconomic environment we are currently experiencing with the nationwide health concerns, we have the concerns that local spending will decrease compared to last year, and this has been implemented into the lesser budgeted sales tax numbers. Additionally, we have concerns with the timing associated with collecting utility bills. This concern has been implemented into the budget and cash management procedures are being developed to ensure City Utilities maintains an appropriate level of cash on hand to fund overall operations.
The budget was prepared for both city operations and utility operations to ensure employees and city fleet needs are being addressed this fiscal year. City employees have not received any cost-of-living adjustments for approximately three years. A compensation study is currently being completed by an independent third-party consultant. Not knowing the final results of this study at this time, we set aside funding for city operations and utility operations to use to provide pay-level adjustments to the City’s most valuable asset – our employees. Additionally, we budgeted $125,000 to use to replace vehicles within the general purpose (non-emergency services) City fleet.
A summary of budgeted City capital improvements includes land purchases ($360,000), a refresh to the Civic Center ($80,000), the City’s match for the all-inclusive park at Butler Park ($250,000), and funding for the splash pad at Butler Park ($200,000).
A summary of budgeted City Utilities capital improvements includes Southern Hills substation transmission line and general prep work ($1,800,000), electric and water meters for our on-going automated meter reading initiative ($1,650,000), water treatment plant improvements ($250,000), and sewer collection system improvements ($400,000).
A special work session with City Council will be held at a later date to review the submitted budgets. Before the work session begins, the City will allow for public comments regarding the budget. For questions regarding the budget contact City Hall, 256-7176.
