Work on city's 2004 budget begins 'cautiously'

Work on the 2004 City of Eureka Springs budget began Monday evening with Finance Director Diane Murphy being "very cautious" about her projections for revenue next year.

"I will tell you now that we are already short in this new budget by $62,000-$63,000," she said. "Our sales tax revenues are down, so far, but I am hoping to finish the year with room to breathe."

That figure comes from various department supervisor budget requests and anticipated spending in 2004.

Murphy is basing her projections on actual revenues and expenses from the 2001 budget.

"We had such a good year in 2002 with high revenues, I hesitate to use those numbers for the 2004 projections," she said. "I am using the actual numbers from the 2001 budget and increasing projections by 5 percent. This is the way we estimated the 2003 budget, too."

She has estimated the total general fund revenues for 2004 at $1,892,370, down $23,100 from $1,915,470 for 2003. The actual budget for 2002 came in at $2,005,327.

General fund revenues include property, sales and beverage taxes, a variety of city license and permit fees, fines and forfeitures in the Municipal Court, user fees from ambulance services, parking revenue from lots and meters and the recycling program, franchise fees, reimbursements from the city's water and sewer accounts, salaries for county/city employees and from the Western Carroll County Ambulance District.

Murphy and Mayor Kathy Harrison said they have heard comments around town that October was one of the best revenue months in some time.

Tax revenues collected in October will not be returned to the city by the state until the end of December.

There was a short discussion about the possible impact of additional revenues next year if the proposed county 5 year 1 cent sales tax passes Tuesday (today).

It has been estimated that the city could realize $226,000 in new revenue for the general fund.

Murphy did not want to speculate on spending the new money until the results of the election are certified. She did not know when the collection of the tax would begin, if it is passed.

She gave council members a thick packet of material to study to work on the budget.

As the group worked slowly down the first page of the proposal, Alderman Earl "Bud" Umland suggested reducing some of the projected revenue categories with the idea it will be better to be pleasantly surprised when revenues exceed projections.

"I would rather under-estimate than go too high and have to do cutbacks later in the year," he said.

At his suggestion, the projected sales tax set aside for operating funds was reduced from $514,500 to $500,000 and the beverage tax revenue from $58,000 to $55,000.

Murphy said she wants to take the council through the new budget line by line so they will know what the revenues and expenses are for the city and its departments.

The council struggled for several weeks with the mid-year budget revisions this summer in a budget they approved in January but did not construct.

Jumping ahead a page in the budget, Alderman Gayle Money said she wants to have a thorough discussion of employee positions and salaries as soon as possible.

Mayor Harrison wants to hire a receptionist to answer the city hall telephone, assist persons who come into city hall needing information and directions, to help with correspondence and filing.

Money and Alderman Penny Carroll are reluctant to hire another person when there might not be a guarantee of continued employment into next year because of budget constraints.

Additional workshops will be held within the next two months to work out the numbers. The budget has to be approved by the council by the end of January of 2004.

Next workshop is at 5:30 p.m. Wednesday in city hall.

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Work on city's 2004 budget begins 'cautiously'

Work on the 2004 City of Eureka Springs budget began Monday evening with Finance Director Diane Murphy being "very cautious" about her projections for revenue next year.