Enterprise council approves $53.2 million budget

The Enterprise City Council unanimously approved a $53.2 million budget for the 2014 fiscal year during a Sept. 17 council meeting.

After receiving the issuance of general obligation warrants this year, the 2014 budget includes an increase of $9.4 million compared to last year's $43.7 million budget.

"What you have before you is a very conservative budget...more so than it ever has been," Enterprise Mayor Kenneth Boswell told councilmembers. "The budget reflects our intent to establish and maintain at least a $4.2 million reserve."

Boswell said maintaining a $4.2 million reserve would help the city maintain its current "AA" credit rating and possibly improve the rating in the future.

"By increasing the target reserve from $2.8 million to $4.2 million, it will improve our position in the financial marketplace and it will also help our city deal with inflation," Boswell said. "It will also help our city react to emergency situations such as tornadoes and hurricanes and any other unexpected thing that may occur in the future in our city."

Boswell said the impact, and future impact of sequestration, has also led the city to construct a more conservative budget.

"Due to the sequester and impact that Fort Rucker has on our city's budget, we have to be more diligent now that we ever have been before when approaching our expenditures," Boswell said.

As done in previous years, all major capital projects funded through grants and bond proceeds will be presented to the council for approval prior to moving forward with purchases.

The personnel expenditures included in the budget do not provide a cost of living raise for city employees.

However, the budget includes annual merit raises for employees, but also a 5-percent increase in health insurance costs.

Enterprise City Clerk Steve Hicks said the 5-percent increase in health costs is the result of the Affordable Care Act, which goes into affect in 2014.

The general fund budget is $27.4 million, which is 3 percent, or $758,274, lower than the 2013 fiscal year budget.

The budget includes an added $1.8 million in departmental capital expenditures for equipment to the $12.3 million capital projects expenditures budget, most of which is coming from a bond issuance.

Capital projects include street resurfacing, construction of the farmer's market, city hall renovations and other economic development purchases.

Total sewer and disposal revenues are $3.5 million, and debt service fund sources are $5.1 million.

The city is expecting to receive about $4.7 million from other governmental fund sources, which includes grant monies, such as the Alabama Transportation and Rehabilitation Improvement Program funds going toward the Dauphin Street improvement project.

Major expenses included in the budget are the purchase of new fire truck that was carried over from the 2013 budget for about $500,000, and $90,000 for defribulators for the fire engines.

Other expenses are $102,000 in citywide technology upgrades, $48,000 for upgrading police video camera systems, $140,000 in upgrades to the Mill Avenue shop, $80,000 for a dump truck, $80,000 for a 75-yard transfer trailer, and $125,000 in sewer system upgrades.

The resurfacing of the top two tennis courts at the Enterprise Recreational Complex has also been included in the budget for $65,000, as well as $81,700 for ball field and concession stand renovations.

Hicks said about $800,000 is being carried over from the 2013 fiscal year budget that will be carried over to the reserves, which he said helps the city reach that $4.2 million in reserves goal.

To see the budget in its entirety, click on the PDF link associated with this story under related documents.

In other city financial news, councilmembers approved the renewal of a $3 million line of credit with The Citizens Bank.

The line of credit is for seven years with a fixed interest rate of 3.42 percent.

The resolution passed by councilmembers also approved the mayor or city clerk to execute a general obligation warrant for the purpose of purchasing equipment, with all transactions being budgeted and approved by city councilmembers.

Boswell and councilmembers also took time to recognize Girl Scout Troop 9241 for their volunteer efforts at the Christian Mission Women and Children's Shelter.

The Girl Scouts constructed a reading corner and play area for the shelter.

The Enterprise Dixie Sweetees were also recognized for being named the 2013 Alabama Co-State Champions in youth softball.

The next Enterprise City Council meeting is at 6 p.m., Oct. 1, at city hall.