WM sets budget for ‘ Big 3’

WM sets budget for ‘ Big 3’

West Memphis Utility, Police and Fire hash out expenditures for 2018

news@theeveningtimes.com

West Memphis city council began annual budget department hearings on the proposed 2018 budget. The city extended 1/12th of last year’s budget plus raises and step increases to fund January business but began in earnest last week to consider the 2018 financial details. The three biggest departments were presented straight of the gate. Projections for the police and fire departments, were heard along with the city utilities company. The utilities budget amounted to almost half of all city spending.

The total annual budget for the Gateway City comes in at just under $55 million. Utility revenue was projected at $30,698,500 for 2018.

Commercial electric sales will amount the lions share of the utility revenue at $25,000,000. Commercial electric use at $15 million outpaces residential use $10 million.

City Treasurer Frank Martin expressed high praise about the utility to city council. Charges for electric, water and sewer are part of everyone’s monthly household budgets and West Memphians have it good.

“We have the lowest rates in the state; that is something you should be extremely proud of,” said Martin.

The city entered a new four year lower cost energy supply contract last June.

The savings help with operating increases like raises and rising health insurance premiums. No customer rate increases were projected in the budget.

The city began offering no fee credit card payments.

“We are charged fees for customers using their card on the web or when they come in ,” said Utilities General Manager Todd Pedersen. “We do not pass that on, it’s fee free to the customer.”

Pedersen cautioned customers to use the official utilities website to avoid third party service charges.

The fees the utility eats have increased but the department remained committed to keeping the payment by plastic as a no cost service to residential customer courtesy, but it will cost the utilities $96,000 this year.

“More and more people are paying with credit cards,” said Pedersen. “It’s $400,000 a month now.”

Changes in the budget were focused on new maintenance projects. Upgrading to digital communication, water tank inspections, improvements at the waste water plant were a trio of the big projects. A redo of the Woods and Broadway station equipment was slated.

“We’ll do a whole new building, pumps and everything,” said Pedersen. We have been having issues at that station. Pumps have been failing us and need to be replaced. The building right now is an eye sore, in my opinion.”

The police department budget was more conservative than some city councilors anticipated. The police commission had toured the department building during a meeting last year and found many repair issues. Rain buckets were catching water on the bottom floor. But no remodeling budget was recommended by the chief.

Oakes explained the repairs that had been undertaken in recent years and that it would be more cost effective to consider a new building.

“The only solution for that building will be a new building or millions of dollars for repairs,” said Oakes.

Instead of remodeling, Oakes focused his budget on providing police services.

New items this year will include five new Tahoe vehicles, ten new radios, and nine new sky cop cameras will be deployed making the total 11 in the city. The cameras and support equipment amount about $7,000 each. The Public Works department funded two of “the eyes in the sky” and the advertising and promotion commission underwrote four surveillance cameras for the tourist area along the service road.

Budget increases showed up in the form of pay raises, step increases, higher health insurance rates and retirement funding.

“The big hit on us was the increase on us in retirement and insurance,” said Oakes. The half percent increase on the LOPFI (Local Police and Fire Retirement) translated into an $85,000 increase on the police budget line.

A new community outreach officer was the key staffing addition and represented an renewed commitment to community relations.

The top ISO class 1 fire department had some new needs as well. The same impact of increased benefits costs showed up on the department plan.

The city needs a new ambulance and to staff vehicles. The cost impacted the capital outlay line.

“I asked for a new ambulance and two staff vehicles which is about $250,000,” said Chief Wayne Gately.

New medical billing software and support services were added to the budget, the previous vendor went out of business. The cost to get the ambulance bills paid is nearly $1,000 per month.

Gately looked forward to have the new hospital opening as a means to reduce time and travel expenses in the ambulance.

“What is killing us now is buying oxygen because we transport farther and using oxygen all the time. But if the hospital opens on time in early 2019. Hopefully we can cut back on that expense.”

The chief added $10,000 to medical supplies and trimmed $15,000 from the fuel budget. The fuel cost was lowered based on purchase

history.

“We haven’t spent all the fuel budget in years,” said Gately.

Foundation work is required at fire station three.

“I increased building maintenance quite a bit, $15,000 this year,” said Gately. Station Three needs some work. I don’t know that this will be enough.”

The entire city budget will be considered during the last city council meeting in January.

By John Rech