City approves $2.58 million 2018-19 budget

Prairie City’s city council approved a $2.58 million budget March 8 for the 2018-19 fiscal year, which includes the planned $35,000 purchase of a snow blower attachment for the city’s bobcat and increased salary expenses for the city cemetery department.

The biggest increases in overall expenses are slated to come from the operation of the water treatment plant and capital projects which include repairs to South Norris Street, replacing a mower and tractor in the public works department, replacing a police patrol car and painting/restoration of the water tower.

The total budget is an increase of $181,700 from the FY2017-18 budget, but the majority of the increases come from municipal utility expenses such as water and sanitary sewer. Total general fund expenditures — items that include salaries, police department, streets and public works — will decrease in 2018-19 by approximately $50,000.

Total revenue for the City of Prairie City is expected to increase in FY 2018-19 to $2.66 million from $2.57 million last year. The city’s property tax levy will only increase slightly by .00139 per $1,000 of taxable valuation.

The budget passed in a 5-0 vote at a short special meeting March 8 at Prairie City City Hall. A public hearing was held directly before the vote.

The budget does rely on water, sewer and solid waste rate hikes, expected to be voted on in June, according to Prairie City Police Chief and Interim City Manager Joe Bartello.

Prairie City sewer customers would see a 3 percent increase in their monthly bill under the proposal. That translates to roughly a $1.21 per month increase for the average household.

Water rates would increase by 2 percent, 50 cents more per month on average, while garbage collection will increase by 3.5 percent. Depending on the size of a resident’s waste can, that averages between a 37 cent to 52 cent per month rise in cost.

In total, city officials expect residents can see a total city utility cost increase between $2.12 to $2.27 per month.

Matt Stoffel of PFM Financial Management represents Prairie City’s financial advisement firm and broke down the proposed increases for the council in February. Stoffel said the 2 percent water increase is to keep prices in-line with inflation.

Prairie City’s garbage and recycling collection contract with Waste Management has an automatic annual 3 percent increase, and Stoffel is recommending the extra .5 percent in case of unexpected costs such as waste can replacements.

The 3 percent sewer increase, Stoffel said, is so the account can both cover operating costs and keep a cash balance reserve. Prairie City is required by the state of Iowa to keep the fund at 110 percent of its annual debt service loan payment in the sewer, a loan taken for the wastewater treatment facility’s construction five years ago.

Prairie City’s budget committee has held two meetings in January and February drafting the budget. The city council also held a budget workshop Feb. 26.

Contact Mike Mendenhall at mmendenhall@myprairiecitynews.com