City will tap into reserve

By By Leada Gore, Hartselle Enquirer
Hartselle will have to dip into its reserves to make ends meet in next year’s budget.
Next year’s projected budget will top $10.3 million. To cover the costs, Mayor Dwight Tankersley is proposing the city move $265,000 from the city’s reserves.
As of August, the city has some $5 million in reserve. That amount includes $325,000 the city owes for a new fire truck.
This year’s economic downturn, including a drop in sales tax revenues, has hit the city’s budget hard.
Next year’s budget includes level funding for all non-profit groups and city departments. There is no money for capital projects and no cost of living adjustments for employees. City employees that qualify for merit raises will still receive them. Merit raises are based on annual reviews of each employee.
Merit raises will cost the city some $112,000 and the council said it would give all employees a one-time $100 pay adjustment. Employee costs are projected to be some 58 percent of next year’s budget, a figure that’s remained constant for the last five years. Some 9.6 percent of costs are associated with bond payments for Hartselle’s schools. City officials are budgeting some $990,284 for the school system next year.
The city is expecting some savings in fuel expense and vehicle maintenance next year. This year’s fuel and maintenance costs totaled some $337,400. Next year’s projected expense is $208,200.
The city’s budget must be in place by the end of September.