McComb selectmen on Monday reviewed a 2010-11 general fund budget of $10.14 million, which includes a tax decrease of 1.1 mills and a projection of no job layoffs for the coming year.
At the public budget hearing, selectmen learned the millage rate is 39.84 — a decrease from 40.94 this year. But while millage is decreased, the city still expects to bring in $2.10 million in property tax revenue, nearly $663,000 more than the 2009-10 budget, because of rising property values.
The budget will not include funds for three capital improvement projects. The city will instead dip into a special account set up in April 2009 to pay for the work.
The projects include the overlay of Locust Street, proposed frontage roads flanking the east and west sides of Interstate 55 and a drainage improvement project along Holmes and Adams streets, and Apache Drive.
The city has budgeted $345,694 for the Locust Street work. The overlay differs from an earlier project that repaired the intersection of Locust Street and Pearl River Avenue, which was funded by American Recovery and Reinvestment Act funds.
The Locust Street project is funded through a matching grant with the Mississippi Department of Transportation. The project also includes the installation of a traffic light at the intersection at Pearl River Avenue.
Plans for the frontage roads call for the east-side road to extend from Anna Drive at Delaware Avenue and run south to Highway 98, and for the west side to pick up at Oliver Emmerich Drive off Delaware Extension and extend southward to 98. The project is in the environmental assessment phase, for which the city has budgeted $150,000.
The drainage project, which the city is calling “watershed protection” requires a 25 percent match of $43,750 from the city.
City Administrator Quordiniah Lockley said at a budget work session on Friday that the proposed “bare bones” budget allows little wiggle room for capital improvement projects, and if the board insists seeing them through, employee layoffs may be necessary.
“We do not have any money to handle capital outlay projects,” Lockley said last week.
On Monday, he said the projects will not be included as general fund expenditures.
Instead, the city may be able to partially fund the projects through the more than $303,000 transferred from the general fund into a special account created in April 2009 after the city closed the Urban Development Action Grant fund.
“Thus far, with this budget, we won’t have to lay anyone off,” Lockley said.”
Selectman Melvin Joe Johnson expressed relief that the altered budget will allow the city to keep every current employee on the job.
The city’s utility fund projects $8.7 million in revenue, down from $23.3 million last year. Expenses are projected at $5.3 million, a decrease of $18.37 million from the previous year. An end balance of $3.3 million also is projected, bringing total expenditures to $8.7 million.
The drastic decreases in revenue and expenditures are due to the completion of the city’s wastewater treatment plant.
Mayor Zach Patterson and Selectman Danny Esch did not attend the meeting.
The new budget projects:
• A $373,568 decrease in the general fund to $10.14 million total revenue.
• A $132,888 decrease in sales tax to $5,171,017.
• Expenditures of $11.8 million, including an end balance of $1.7 million from 2009-10.
• A general government budget of $1.4 million, down $418,228 from the previous year.
• A $301,908 budget for the zoning department.
• A public safety budget of $5.3 million, down $78,485 in the previous year.
• A public works budget of $2.5 million, down $19,340 from 2009-10.
• A recreation department budget of $614,551, down $38,865 from the previous year.
• A $134,306 budget for the Department of Community Relations and Tourism. With the motel tax dead, this is the department’s first year as part of the general fund.
Selectmen will vote to adopt the budget at their Sept. 14 board meeting. The current fiscal year ends Sept. 30, and the new budget will take effect Oct. 1.
