BY MELINDA J. OVERSTREET
FOR Glasgow News 1
Glasgow city officials have prepared a $29 million proposed budget for the 2023-24 fiscal year that calls for roughly $87,000 more in revenue than expenses. First reading of an ordinance to adopt the nearly 150-page drafted document is scheduled for the Glasgow Common Council’s next regular meeting at 6 p.m. June 12, with the second reading to follow at the June 26 meeting. The city is required to have at least one copy of the proposed budget available for the public to view prior to any votes, and an opportunity for public comment is to be on the agenda of the June 12 meeting.
The new fiscal year begins July 1.
The council members had received copies of the proposed financial plan May 26, and the council’s finance committee had gotten a broad preview of it earlier last month at its regular meeting but it had a special-called meeting Monday for discussion of any questions or comments they had.
City Treasurer Stephanie Garrett verbally listed some of the larger-ticket items. They included raises for every department, which she said average 6 percent but would not be the same percentage for every person; roughly half the cost of a fire truck, with the other portion planned for the following year’s budget; repairs at the fire building; police vehicles, cameras, rugged laptops and uniforms; several pieces of heavy equipment and smaller items for the Street and Stormwater divisions; excavator, cameras, temporary and permanent fencing, a couple of pieces of heavy equipment, a methane meter, paving around the recycling building at the landfill; six new city entry-point signs; mowers and weed eaters for the Parks and Recreation Department; a bathroom facility at Gorin Park and one at Beaver Creek Park; and the first phase of a newly designed aquatics area at American Legion Park.
Councilman Terry Bunnell, who chairs the committee, had several quick questions and comments, but nothing of apparent significant concern, and a the few other questions were similar in degree.
Numbers summary*
The first section of the budget is a summary of estimated revenues and expenditures for FY 23 and FY 24 for each of the 11 separate funds the city has, with most things falling within the General Fund, with the balance forward – known as the fund balance – from the fiscal year that ended in 2022.
For the General Fund, for example the fund balance from FY 22 was roughly $7.85 million. This year’s estimated revenues are $25.37 million and expenses are estimated at $21.23 million, so the fund balance is expected to be $11.99 million going into the coming fiscal year. Budgeted revenue for the General Fund for FY 24 is $20.25 million, with expenses budgeted at $23.63 million, which would leave the fund balance with $8.62 million at the end of June 2024.
Other funds include the Plaza Theatre, Municipal Road Aid, Kentucky Law Enforcement Foundation Program, Glasgow Economic Development Loan, Municipal Cemetery, Perpetual Upkeep (for the cemetery), Sanitation/Landfill, and Closure/Postclosure (for the landfill).
Revenues from the Sanitation/Landfill Fund are used to help balance out the budget as a whole.
The bulk of the budget document consists of the detailed line items, for which the actual final figures for FY 21 and FY 22, the budgeted and actual figures for FY 23, and the budgeted figures for FY 24 are provided.
In conclusion, summary pages with revenue-only figures from what will be the previous five years – including this current one – and the coming year are provided for each department or section within the General Fund and for each of the other funds. Likewise, summary pages for the expenses only are provided.
The grand total of revenues in the proposed budget for FY 24 for the General Fund and all other funds combined, is $29,280,025, while the grand total of expenses is $29,192,864.
*All figures are rounded.
Mayor’s message
The city’s budget proposal always includes a message from the mayor, and this is Mayor Henry Royse’s first time through the budget planning process for the municipality.
His message begins, “No amount of expertise could have prepared us for the COVID experience. But how can we use what we learned from that awful journey to make us better? As the city of Glasgow prepares for 2023-2024 we think we have factored in many of those ‘lessons’ into a solid, sustainable budget process.”
“Let’s talk about revenue,” he continues. “The gravy days of COVID relief funding, ARPA funding and government subsidies related to the pandemic have all but been eliminated. So, we must depend on our prepandemic funding sources with real-world expectations.”
Royse states that an increase in property valuations has led to additional property-tax revenues, and payroll tax revenue appears to be on the rise while other tax revenues are on a “steady positive trend.”
“On the topic of expenses, it’s a different world,” the message states. “The cost of living last year increased 5.9 percent. While it can be attributed to many things, at the city level, we’re seeing it in the cost of maintenance and construction. Any projects that have been quoted have come in way over budget. And that’s if you can get vendors to bid.”
He acknowledges that the city’s 186 employees are seeing the same trends with their personal budgets, leading to a “meticulous amount of effort” by the department heads and the administrative staff to provide salary adjustments.
The administration has included the “much needed $2.45 million” for the first phase of what is anticipated to be a $10 million swimming pool replacement, Royse states.
“With such challenges it’s reassuring to know we’ll begin the year with no long-term debt and a positive cash flow across the board. Our reserves find us prepared for major emergencies,” the message concludes. “As mayor, I present this budget in complete confidence. The expertise exhibited in leading us through the unknown pandemic challenges has enabled us to plan for the future with real-world experience.”
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