Approved budget, FY2010

Revenues

FY 2008 Actual

FY 2009 Estimated

FY 2010 Proposed

Building Permits

$313,744

$120,500

$112,000

Sign Permits

$0

$0

$0

Planning & Zoning Fees

$0

$0

$1,750

Telecommunications Fee

$0

$0

$600

Charges for Services

$0

$0

$300

TVA In Lieu

$43,874

$45,320

$45,500

State Sales Tax

$337,636

$317,000

$325,000

Local Sales Tax

$22,973

$29,500

$31,000

State Income Tax

$929,023

$320,000

$300,000

Metro Road Funds

$88,000

$88,000

$88,000

State Beer Tax

$2,585

$2,465

$2,500

State Street Income

$144,292

$135,000

$137,500

Interest

$397,425

$220,000

$225,000

Miscellaneous

$1,094

$6,000

$1,000

TOTAL

$2,280,646

$1,283,785

$1,270,150

Expenditures

FY 2008 Actual

FY 2009 Estimated

FY 2010 Proposed

Employee Salaries

$251,836

$195,000

$244,113

Employee Benefits

$48,403

$52,000

$48,225

Board Salaries

$10,800

$16,200

$16,200

Professional Services Salaries

$0

$67,000

$37,500

Retirement

$0

$0

$40,500

Other Professional Services

$47,112

$55,000

$55,000

Public Relations

$88,967

$45,500

$47,000

Office Supplies

$19,588

$14,500

$20,000

Rent

$30,885

$24,000

$34,000

Employee Health Insurance

$0

$9,100

$37,907

Liability Insurance

$15,151

$12,971

$13,000

Worker's Comp Insurance

$0

$5,688

$5,750

Property Insurance

$0

$509

$525

Surety Bonds

$0

$0

$1,260

Election

$5,885

$0

$6,000

Miscellaneous

$38,904

$15,000

$7,500

Repair & Maintenance

$0

$3,025

$5,000

Dues & Subscriptions

$0

$5,500

$6,000

Training

$0

$1,000

$2,500

Travel

$0

$1,500

$4,500

Auto Allowance

$15,834

$1,700

$2,000

Legal Notices

$0

$2,500

$2,500

Police Patrols

$0

$3,000

$47,000

Utilities

$0

$9,600

$13,000

Debt Service

$0

$0

$0

Operating Expenses

$573,365

$540,293

$696,980

Capital Outlay

$4,668

$0

$12,000

Street Supplies

$0

$6,000

$7,000

ROW Mowing

$0

$41,000

$41,000

Street Lighting

$33,178

$42,000

$42,000

PW Emergency

$281,808

$35,000

$37,000

Chipper Contracting

$38,502

$162,000

$162,000

Street Repair & Maintenance

$0

$50,000

$50,000

Snow/Salt Contracting

$30,385

$23,750

$24,750

Professional Svc.

$51,031

$4,500

$35,500

Operating Expenses

$434,904

$364,250

$399,250

Capital Outlay

$72,684

$129,600

$25,000

Opt. Trn. Sanitation Fund

$289,992

$289,992

$289,992

Total Operating Expenses

$1,298,261

$1,194,535

$1,386,222

Total Capital Outlays

$77,352

$129,600

$37,000

GRAND TOTAL

$1,375,613

$1,324,135

$1,423,222

Employees

4

4

4

FY 2008 Actual

FY 2009 Estimated

FY 2010 Proposed

Beginning Fund Balance

$6,709,848

$7,614,881

$7,574,531

Revenues

$2,280,646

$1,283,785

$1,270,150

Expenditures

($1,085,621)

($1,034,143)

($1,133,230)

Other

($289,992)

($289,992)

($289,992)

Ending Fund Balance

$7,614,881

$7,574,531

$7,421,459

Finances in good shape despite the economy

As I am sure you are aware, the economy has created a number of problems for local government budgets throughout the country. While we are no different in some respects, we are fortunate to have a very strong fund balance. This is the result of decades of sound financial management and it is the reason that we are well positioned to weather downturns in the economy like we are currently experiencing.

Predicting the budget is difficult since our primary source of income lags the budget process by approximately 15 months. We are expecting a reduction this year in both the Hall Income Tax and in State Shared Sales Tax. These are the two largest revenue sources for the City. We have also seen a substantial decline in our return on invested funds. As a result, we are likely to use some of the reserve funds that we have accumulated to operate in the coming year. While this raises concerns, those concerns are diminished by the realization that the City of Oak Hill has netted over $1.2 million in the past three fiscal years alone, and this budget will use only 2% of our total fund balance. Our projected fund balance of over $7.4 million will still remain well above where it was in July 2007.

With the expectation the economy will improve within the next 18 months, this should be either the last or next to last year we will make use of our reserves. Once the economy recovers, we will once again be able to add to our reserves. Since we have substantial assets with no debt obligations, our fortunes will recover quickly once interest rates begin to rise. This is a move that is expected within the next 12 months.

I want to assure you that we are closely watching the financial status of the City and will make changes if we feel they are needed. However, we believe that the state of our finances is such that you can continue to enjoy the benefits of living in Oak Hill without service delivery cuts, increased fees, or the imposition of taxes. We are especially proud of this fact since many local governments throughout the nation cannot say the same.

—Kevin Helms