Council hears budget preview
The Red Oak City Council received an update on the city’s proposed 2023-24 budget.
A special meeting is scheduled for 5:30 p.m., April 24, at the Red Oak Fire Station. A public hearing on the budget is scheduled, and formal adoption will also be on the special meeting agenda.
At the April 17 meeting, the council heard comments from city administrator, Al Vacanti, who began by expressing his appreciation to new city clerk Christie Vanderholm, Mayor Shawnna Silvius, and the city’s department heads in getting the proposed budget completed.
“I won’t be foolish enough to say it’s a perfect budget, but I think it’s a good and workable budget. The more I talked to people and learned the operations of the city and the needs of the city and departments, we got more comfortable and felt this was a workable budget, rather than something to get the city by until 2025,” Vacanti said.
Vacanti said proposed legislation to reduce the costs on Iowans property tax bills has passed through the legislature, and it will cost the city approximately $50,000 in general property taxes.
As for the budget itself, the current year’s budget is $10,765,782, and the proposed budget was $13,649,615, a $2,844,000 increase. However, Vacanti said there was little need to get concerned.
“There’s a runway project of $1,380,000 that is 90% funded by the Federal Aviation Administration that is still included in the full budget amount, at the Red Oak Municipal airport,” said Vacanti. “Also, there’s a project at the wastewater treatment plant. We don’t know what the numbers are yet, because the preliminary engineering report is not completed to give us an idea, so I put in a number of $1 million for anticipated expenses for the first year, thinking it will be a two or three year project. It may be lower than that, but I tend to go a little stronger on expenses and a little less on revenues.”
Also, there were two American Rescue Plan Act expenses, $138,000 for the purchase of a new ambulance, and $94,000 for the water department to GPS map all of the water valves and lines.
While much was included in the proposed budget, Vacanti said they did not include any potential franchise fee monies.
“You’ve heard the discussion before. Up to 5% would generate around $400,000, with $320,000 of that used for the general purposes identified, and a portion would make up the lost local option sales tax funding,” advised Vacanti.
Vacanti was comfortable with the budget, and said they worked hard to identify needs.
“We didn’t kick a can down the road. We tried to identify projects that needed to be done. Also, there are some funds in reserve, so you can get other things done. I’ve also been working on the first draft of a full capitol improvement plan for the entire city, so each department head can see what the others have identified as needs,” Vacanti commented.
Vacanti advised the council he identified some additional funding for the Evergreen Cemetery.
“The gentleman is trying to keep a 1978 dump truck running, and other equipment running, and the roads are in poor shape, so he’s going to get some more money to put into fixing that.”
Vacanti reiterated that of the $2.8 million increase, $2.6 million were for projects, with one that would be funded at 90%
Lastly, Vacanti said none of the department heads had needs that were unreasonable, and all had an understanding that every year was going to be a challenge, and that they needed to do as much as they could with as little as possible.
No further action was taken on the proposed 2023-24 budget.