Surplus monies will cover deficits in new city budget

By Editor | August 2, 2017 |

The Vandalia City Council has approved a budget that includes deficits in three funds, but those deficits will not create an overall deficit.
That’s because surplus monies in those funds will be used, if necessary, to offset the deficits. Also, those deficits may be smaller than anticipated.
Three days after going over the budget for the current fiscal year during a work session, the Vandalia City Council approved on Thursday afternoon a spending plan tied to that budget.
The deficits in tourism ($39,900), capital improvements ($620,950) and motor fuel tax (105,657) total $680,603.
Mayor Rick Gottman said that the funds won’t end up the fiscal year with a deficit because of surplus monies in each of those funds.
The tourism figure includes the hiring of a part-time employee who would concentrate on coordinating the city’s tourism efforts. That position may not be filled this fiscal year, Gottman said.
The capital improvement total for the year includes the city’s share of replacing the bridge on Thrill Hill Road. That road has been closed since the state deemed the bridge unsafe in May 2014.
The motor fuel tax figure includes the additional oiling of streets in the city.
As the appropriations ordinance, which is the city’s spending plan for the fiscal year, came up for a vote on Thursday, Alderman Mike Hobler questioned approving a plan with the deficits.
“If we can’t afford them, why do it?” Hobler asked.
“I would like to put some of that on hold” until the state gets its finances in order, he said.
Gottman said that the state has approved a budget and the means to catch up on monies owed to muncipalities, and addressed the deficits in the motor fuel tax and capital improvement funds.
Without the additional street oilings, he said, “We’re going to continue the deterioration of the streets and transportation in our community, and I’d hate to see that.
“The longer it deteriorates, the worse it gets, the more it’s going to cost us in the long run,” Gottman said.
About the capital improvement deficit, he noted that the entire cost of the Thrill Hill bridge is included in this year’s budget, even though it will likely end up spilling into the next fiscal year.
He told Hobler, “Even though it’s in the budget doesn’t mean we have to approve it.”
The council, he said, will deal with major issues specifically throughout the fiscal year.
“The big things have to come back to this governing body (for approval),” Gottman said.
Also at the special meeting on Thursday, the council approved the vacation of a city-owned portion of Jackson Street off of Locust Street and the closure of Fletcher Street in the area of the baseball and softball diamonds from 3-9 p.m. next Friday for the Vandalia Chamber of Commerce’s “Farewell to Summer.”