The City of Sullivan held their third special meeting on the upcoming 2010-11 Fiscal Year Budget and it appears as though Sullivan, like many communities, will face possible cuts in services. The proposed cuts are expected to be defined by city administrator Mark Falloon and presented at the next budget meeting.
According to the minutes from the special meeting, Administrator Falloon presented budget revenues for Fiscal Year 2010 estimated at $4,156,426 and $4,282,986 in 2011. Overall estimated expenditures are $4,530,824 in 2011, up from $4,123,939 in 2010. The general fund comprises most of the operations of general government activities including administration, engineering, police, street, airport, parks and insurance services.
Sullivan mayor, J.T. Hardy, pointed out to the council that the general fund has a shortfall even with contributions from other funds. He also noted that recent trends in the economy has affected sales tax revenue. Hardy then reviewed the personnel service costs for the past three years.
Administrator Falloon reported that the general fund continues to be inadequate to support itself based upon an inadequate revenue stream from taxes.
City staffing has remained flat over the past 10 years with rising demands and expectations for services rendered. Any expansion of service will require expansion of revenue streams to support the same.
In order to balance the general fund, services would have to be drastically cut.
Following this input, the council held a lengthy discussion with the board directing Administrator Falloon to reevaluate the general fund and recommend budget cuts at the next workshop on Aug. 5.