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Stanford approves $1.9 million budget

June 24, 2009|TODD KLEFFMAN

STANFORD - City Council approved a $1,981,186 budget for 2009-10 at a called meeting Tuesday night, but had to raise taxes and dip into the city's contingency fund to make it work.

"It's a tight budget, tighter than the one last year," Mayor Bill Miracle said. "You're just glad if you can get through one full year with your budget in these times."

In order to make the new budget balance, the city had to increase its tax rate by 4 percent, which will bring in only about $4,000 in new revenue.

It also will use $40,000 from it's rainy day fund, bringing the balance of that fund down to $26,000. By law, cities are required to keep two month's operating budget in reserve, and Stanford is still in compliance, City Clerk Sandy Gooch said.

With unemployment up, projected revenues from the city's occupational tax are down to $400,000 for the upcoming year. That money, plus $500,000 from the insurance premium tax, provides half of the city's spending money.

The budget includes $111,000 in money from FEMA that the city has yet to receive. That's how much the city spent to clean up after January's ice storm.

Funding from the state decreased by about $10,000 and municipal aid money, which is used to blacktop streets, dropped from $37,000 to $33,000.

Buying four police cruisers

Despite tough fiscal times, the budget includes $69,000 for four new police cruisers. The city is buying three new patrol cars for $23,000 each and getting a fourth one for free.

After approving the budget, the City Council went in to executive session and came out agreeing to purchase about four acres for the water department for $25,000.

The parcel is located off East Main Street, between the water department's new building site and the old industrial park. It will become a home for the department's shop.

"That will allow us to put all of our operations in one spot," said manager Alan Deshon.

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