Council Holds Budget Workshop With Final Work Near

The Sullivan City Council held a special workshop meeting on Tuesday night, September 7, following their regular meeting on the proposed Fiscal Year 2021/2022 Budget.

Sullivan City Administrator J.T. Hardy reported to the council that the balanced budget proposed included a projected balance forward of $23.5 million from Fiscal Year 2021, $24.9 million in revenues for Fiscal Year 2021 and $23.9 million for expenditures.

The multi-year capital improvement budget included $794,750 for Fiscal Year 2022, this includes: Parks Dept.: North Side Trail (S Section), $150,000, Pool liner, $93,000, Park Tables, benches and pool furniture, $30,000.

The Police Department Capital Improvements included two 2022 police vehicles $115,000, Range Improvements, $17,000 and new computer server, $5,000.

The Electric Department will carry over $100,000 for their new building at $58,000 for a reel turret trailer.

Water and Sewer Department improvements include Vine St. project Phase One, $300,000, Well Generator, $60,000, Manhole Lining, $50,000 and Service Truck, $35,000.

Hardy reported that there was a 3% personnel step increase for Fiscal Year 2022. The city’s self-funded health insurance has experienced larger than expected expenses the last couple of years.

Since its inception in March 2002, the self-funded plan had been balanced. This coming year the plan routes will be sought from traditional health insurance carriers for comparison purposes when the plan year starts over in March 2022. Since the self-funded health insurance is currently at a deficit, the Fiscal Year 2022 budget reflects a $5,000 person transfer into the health insurance fund.

Hardy provided an overview of the city’s fiscal performance to date for 2021, noting that sales tax is trending upwards so far. However, the record low weather temperatures in March 2021 cost the city $3.2 million (The average monthly invoice runs about $500,000).

Hardy stated that the council authorized using reserves to pay for the electric increase and it was not passed along to the customers.

Hardy stated he would like to have $10 million in electric fund reserves.

A public hearing on the budget will be held on September 21, at 7 p.m. at Sullivan City Hall with an ordinance prepared to adopt the budget following the public hearing,