City Council OKs first reading of 2012-13 $41.4 million budget

Councilmen Bobby Simpson, left and Tommy Reed discuss budget figures prior to the start of Tuesday's city council meeting. Click to enlarge.

By JIM BROOKS
Nelson County Gazette

Wednesday, June 13, 2012, 2:30 a.m. — The Bardstown City Council took the first step Tuesday toward approving Mayor Bill Sheckles’ proposed $41.4 million 2012-13 city budget.

The city’s General Fund — which funds police and fire protection, the city pool and recreation, the community prevention center and the new OKH Center — has a budget of $6.83 million.

This year’s budget is less austere than last year’s budget — thanks to the council’s vote last year to increase the city’s occupational tax revenue. The city’s revenue from the tax increased by more than $800,000. How much more money the occupational tax will collect won’t be known until a full year of the tax has been collected.

Of the $41.4 million budget, the city’s Combined Utilities fund makes up most of that total ($34.5 million). The figure includes the city’s electric, water, sewer, garbage cable TV and internet services. Of the city electric’s total $15.4 million budget, $12.6 million of that is the wholesale cost of electricity the city purchases from Kentucky Utilities.

The council, which received copies of the budget a week ago, spent a considerable amount of time with questions about requests for new expenditures.

WAREHOUSE STAFF. Councilman Bobby Simpson questioned hiring a fulltime employee to accept deliveries at the city shop for $16 an hour plus benefits.

Jeff Mills, city electrical engineer, explained that the various city utilities frequently receive shipments of materials and supplies, and a full-time warehouse worker would accept deliveries and track inventory. Right now, one of the supervisors usually gets called to the shop to accept deliveries.

Simpson suggested they give the warehouse duties to a newly hired electric utility employee, arguing the work isn’t full-time now, and doesn’t need full-time attention. Mills said the cost of the warehouse worker would be shared among the cities’ employees, and argued the city shop needed someone to organize the inventory and keep it straight.

Mills explained that using himself and department heads to accept deliveries wasn’t the most cost-effective use of their time. “You wind up with some pretty high-priced guys out there messing with a pallet,” he said.

Mayor Bill Sheckles said the warehouse position would save the city money because it would reduce the number of lost and misplaced parts. He explained how parts received intended for individual utilities get lost or misplaced, and aren’t available when needed, resulting in orders for duplicate parts. “We’re over-buying stuff” because parts get misplaced, he explained said.

EMPLOYEE RAISES. The proposed budget includes a 3 percent across-the-board raise for all city employees. Some employees will also qualified for an additional 2 percent raise. There were no employee raises last year.

Reed questioned how the 2 percent would be distributed to employees. “You want us to give you a blank check on that 2 percent?” he asked.

Sheckles explained the intent of the additional 2 percent raise is to bring some city employees up to a competitive wage. “It will go to the people who need it the most,” he said. He said some city employees were collecting food stamps and unable to pay their bills. “We’re going to even out this payroll structure,” he said.

FIRE TRAINING FACILITY. The proposed budget also includes $30,000 to fund construction of a fire training tower on city-owned property adjacent to the sewer treatment plant at 3905 Sutherland Lane. Interim Fire Chief Marlin Howard explained the training facility would benefit the department by allowing them to train for various scenarios without the need to leave town or find a structure for a “live burn.”

After additional questions and discussion by the council and staff, the council voted 5-1 to approve first reading on the proposed budget. Councilman Bobby Simpson voted no,

Simpson said he felt the employees should all get the same dollar amount raise rather than a percentage. “I just think that’s more fair,” he said. “I think everyone should get the same.”

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