Plain City Village Council has approved an $8-million budget for 2019.
At Monday night’s meeting the council held a public hearing and final reading for the village’s 2019 appropriations budget. The budget calls for spending of $8.016 million for 2019.
“This is what I would say is a relatively flatline budget proposal,” said Village Administrator Nathan Cahall.
He said that a cost of living adjustment to the village salaries is “really the only increase.”
The administrator said that unlike many other communities, salaries and benefits do not dominate Plain City’s budget.
“A huge portion of it is going for the meat and potatoes of making the village run day to day,” Cahall said.
Salaries and benefits make up about 32 percent of the village expenses.
Officials said the village began the year with a balance of $8,666 million. Officials are projecting revenue at $7.054 million for 2019. They said they expect the carryover balance to increase to $8.99 million for 2019.
Council also approved the Capital Improvement Program (CIP) budget for 2019.
“The proposed 2019 CIP not only provides a guideline for 2019 capital expenses, but also maps out a tentative capital improvement path for the community over the next five years,” Cahall said.
The $2.345-million (CIP) budget includes funding for things like street repair, improvements to the village sewer and water plants, purchase of vehicles and upgrades at the village parks.
“The village has significant infrastructure replacement and upgrade needs as it continues to grow,” Cahall said. “With prudent scheduling of projects and obtainment of third-party grant and loan funding, the village is in a position to address those needs in the coming years.”
According to Cahall, “this year’s proposed budget and CIP continues to invest in both staffing and capital improvements as the Village continues to witness growth and revitalization.
Cahall said the budget is “a policy statement.”
“You put your money where your mouth is,” Cahall said of the budget. “You are communicating to the village what is important.”
The village administrator explained that a key component of this year’s budget proposal is a transition from debt financing for many public improvements to a cash-financed model. He said that allows the village to purchase items with existing funds, then set aside money from department budgets each year to pay for upgrading the item in the future rather than using money to service debt.
“This will require the village to utilize some fund reserves over the next few years for certain projects and initiatives,” Cahall said.
With expenses of $8.016, the general fund balance is projected to shrink to $8.028 million for the start of 2020.
“The village is fortunate to be in a solid cash position in most funds that will allow for this transition to occur.”
Cahall said that by using the cash financing, the budget will take the one-time hit, but by 2020 or 2021should begin to level off and “begin to rebound.”
Officials said they have conservatively estimated revenue and not included any of the growth coming to the village.