Proposed departmental budgets for the city of McMinnville for fiscal year 2013-14 are on their way to prospective committees. They will be reviewed this coming Thursday, June 13, beginning at 6 p.m., now that they have passed Finance Committee muster.
“What Finance did was go through the previous two years on what was spent,” said Finance Committee chairman Ken Smith referring to himself and fellow members Ben Newman and Mike Neal. “We used those numbers to help us make changes to the proposed budget to get the fund balance we want.”
Finance Committee members reviewed the budgets with Building and Grounds, Water and Wastewater, Street and Sanitation, Safety, and Parks and Recreation Committee members to explain what changes were made. Now that the initial process is complete, the committees will get to review their budgets without Finance.
During the final meeting between Finance and other committees May 30, members were alerted to the fact Finance wants a projected fund balance of $4 million by the end of the fiscal year on June 30, 2014.
“We have a figure that we want, which is a $4 million fund balance,” said Smith. “We are not going to present a budget below a $4 million fund balance.”
The ending balance allows for $2 million that city administrator David Rutherford says the city needs to pay debt service and operating expenses until revenue is received in late 2013, and an additional $2 million for a “rainy day fund,” says Smith.
“When we first came on, we earmarked the sales tax recovery for capital improvements,” said Smith. “The $4 million covers what David says he has to have in six months reserve and what was called a rainy day fund.”
Finance will get a chance to review changes made by committees to the budgets before they are presented to the full board for its consideration.