Daniel Prince
Council will be trying to close a deficit of nearly $761,000 during their budget sessions
The Union City Council met for nearly four hours yesterday to begin work on the 2023-2024 budget. They received an overview of the budget at the beginning of the meeting, and the rest of the time was spent hearing budget requests from a number of agencies. The city is anticipating an increase in revenue next year of more than $457,000. However, projected expenses are also increasing, leaving the council a deficit of $760,910 in the general fund to try and close. The city can raise taxes up to 5.5 mills this year, which would generate an additional $68,000 in revenue if the council chooses to do that. Cutting expenses is the major way to close the deficit, and the general fund balance can also help to cover it. The deficit represents 14% of the general fund balance that the city has on hand.
The utility fund has a much bigger deficit, with expenses outpacing projected revenues by more than $4.8 million. City Administrator Joe Nichols said that number is down from $6.1 million that was anticipated earlier in the week. Raising rates, reducing expenses, and tapping the utility fund balance are all ways to reduce that deficit.
The solid waste fund is projected to have a $66,000 deficit in the coming budget year. Raising the solid waste fee by $1 would bring in an additional $48,000 in revenue to help close that gap, if the council chooses to do that. Reducing expenses is also an option.
Council received updates and requests from Union County 4-H, Union County Family YMCA, Uniquely Union Festival, Union County Development Board, Union County Chamber of Commerce, Union County Library System, Union County NAACP, C-4 Services, Union County Tourism Commission, Union County Farm and Craft Market, Environmental Art and Music Festival, Union County Fair, Olde English District, Union County Livestock Association, and the Union County Historical Society.
Today, the budget workshop continues at 4 p.m. in the conference room at Main Street Junction. Council will hear presentations from the various city departments, starting with Main Street Junction, and continuing with maintenance, legislative/personnel/city clerk, planning, public safety, and finance. After a supper break, they will hear the utility department’s presentation, and then the council will look over all the requests and set priorities and capital and review the entire budget.