Calling it “fiscally conservative” Magnolia Mayor Anthony Witherspoon said the city’s $2.2 million 2015-16 budget calls for no tax increase and more efficient management of the city’s finances.
The board will hold a public hearing on the budget at 5:30 p.m. Sept. 8 and vote on it afterwards. The new spending plan takes effect Oct. 1.
In it, total general fund expenditures increased by just over $48,000, from $2,183,657 last year to $2,231,930 this year. But projected revenue has increased from $2,166,083 to $2,232,930.
An increase in sales tax diversions has helped bring revenue in as well, said Witherspoon, who recently completed his first year as mayor.
Figures from the Mississippi Department of Revenue show $388,000 in sales tax diversions for the current fiscal year, which is an $18,000 increase from the year before.
Witherspoon said additional commerce and lower gas prices have led to increased revenues.
“As part of downtown revitalization, we’ve had two new restaurants come into town. We’ve seen growth with the Flying Fish, too,” he said, referring to another restaurant. “Love’s gas station has generated more revenue due to lower gas prices.”
The city also has brought in additional revenue from water bill and court fine collections, he said.
Since becoming mayor, Witherspoon has encouraged a more aggressive approach to city collections to recoup outstanding water and court fines. The city hired a collections firm to recover some $850,000 in unpaid and overdue fines.
“This has nothing to do with writing more tickets but being more aggressive in getting fines paid,” he said, speculating that the overall number of tickets issued by police has gone down.
Witherspoon said officials also are being more stringent with late water payments.
“We now require justification for adjustments to water bills, and we allow less extensions on late payments. This has increased our water revenue,” he said.
Witherspoon is proposing an increase in the budget for culture and recreation spending to purchase playground equipment.
The board fine tuned and added a line item for street repairs, noting the $20,000 in the budget for street repairs was only enough for fixing potholes and small repairs. The mayor and board said they would take money from budget surpluses in other departments to add to street work.
The fire chief’s salary is set at $20,000 from the year before, although Witherspoon has previously noted he wishes to give Chief T.J. Bowman a full-time salary.
On Tuesday, the mayor suggested putting the chief on full-time duty and going from four volunteer firemen to two full-time firemen.
“This is a way to lower our insurance premiums. It will also make us more marketable as a city in the future,” he said.
Asked for his input, the chief agreed.
“Another thing with having two full-time guys there. They’ll be able to determine what is an important call and what isn’t. They’ll know when to send other responders back to their stations. I think it’s a great idea,” Bowman said.
Following a raise to city water department staff, the total budget for the street department is projected to increase by $20,613.99.
However, the mayor said the city has seen a reduction in overtime pay, which has been a large expenditure in the past.
Witherspoon requested aldermen take a look at needed improvements in their wards, and report back to project future expenses.
“I’d like all of you to ride around in your ward. Get an idea of what you think needs to be taken care of,” he said.
The mayor said the city should consider possible loans for infrastructure projects given the economic climate. “We’re seeing some of our lowest interest rates in years. Now would be an ideal time to get a loan,” he said.
