According to the 2013-14 budget for the City of Newburg, which was adopted Tuesday evening, the city expects to take in far less revenue than what expenses are predicted to be.
At the Newburg Board of Aldermen meeting, the three board members present — Alyson Garvey, Randy Brinkley and Dallas McNew — approved the budget. Alderman Bill Stines was absent.
The new budget approved includes estimated total revenues of $592,337 and total estimated expenses of $655,876, a negative difference of $63,539.
The budget shows a total carry over amount of $116,798.73 as of June 3.
The 2012-13 budget, which was revised at the board’s May meeting, states that total income was $880,934 versus total expenses of $930,674, a negative difference of $49,740.
It was noted that fewer city residents may be one reason for less revenue in the new budget, which will take effect July 1.
Property tax revenue is expected to drop from $13,900 in the 2012-13 budget to $12,400 in the 2013-14 budget and sales tax revenue is projected to fall from $19,550 from the current year budget to $18,770 in next year’s budget.
The city’s biggest source of revenue this coming budget year will be from utility income. Projected revenue in this category for the coming year is $474,500, a drop from $494,500 in the 2012-13 budget.
The biggest expense to Newburg is electricity bought. That cost will actually drop by about $1,000 in the 2013-14 budget, from $258,000 to $257,000.
Also at the board of aldermen meeting, the board officially approved an ordinance that would have the county collector’s office take over handling property and real estate taxes collections for Newburg.
Under the agreement with the county, Newburg would pay the collector’s office 2 percent of the total amount of property and real estate taxes that the county collects for Newburg. The agreement runs through the end of February 2014 and can be renewed each year.
The agreement also states that Newburg residents’ taxes will be due on Dec. 31, about a month earlier than usual. That will take effect this year.
By having the county collect taxes, it is estimated to save the city about $900 a year. Since 2004, the county has collected city property taxes for both Rolla and St. James.
Last month, the board voted 3-1 to send the ordinance to the city attorney for review. At that time, the board voted 3-1, with Brinkley voting against sending it to the attorney. This time, Brinkley voted in favor of the change.
In addition, board members tabled action again on reinstating city stickers for vehicles owned by Newburg residents.
Randy Brinkley suggested the idea at the board’s May 14 meeting, saying it would give the city more control over old abandoned vehicles in residents’ yards.
Page 2 of 2 - Garvey said she feels it’s a good idea, but asked how much it would cost. The board agreed to research costs of printing the stickers from different vendors and report their findings at the July 9 meeting.
It was noted that the city used to require stickers for vehicles, but the ordinance for the program was actually never repealed, but enforcement of it stopped.
Brinkley said he believes the officers who are currently with the police department would enforce the program, if it is implemented again.
If the program is reinstated, the board would have to amend the ordinance and have the city attorney review it.
Under Brinkley’s proposal, vehicle owners in town would not be able to renew their stickers until their personal property taxes have been paid. Last month, Brinkley suggested having residents pay $5 per sticker.
“We need to clean up Newburg one thing at a time and I think the vehicles is a good place to start,” Garvey said.