July 4 fireworks could be eliminated, other spending delayed
Town Manager Leamon Brice on Friday released a list of potential budget reductions aimed at coping with possible revenue shortfalls amid the weak economy. Town department heads, at Mr. Brice’s request, have outlines $189,198 in potential cuts, though no final decisions have been made about what or when to cut.
The list includes possible downsizing or even elimination of the town’s July 4 fireworks at McEver Field, delayed repairs and computer upgrades, and delays in some planning projects. The manager said he will bring up the issue with the Town Board at its January meeting. See the list below.
Town of Davidson announcement
In November, Town Manager Leamon Brice asked department heads to look for ways to reduce their budgets, with an emphasis on projects that could be held until later in the fiscal year, or until a future fiscal year.
The department heads have returned to Mr. Brice a proposed reduction of $189,198 for consideration.
Since this reduction in funds may affect programs and services to residents, we wanted to provide a list of projects that may be delayed if this budget amendment is passed.
The following is a list of suggested department cuts:
- Administration – $14,000
This includes delaying building repairs and delaying updating computers and equipment - Fire – $3,500
This includes supplies, materials, dues and the lease on the Jackson St. property - Parks & Recreation – $19,400
This will eliminate portable pitching mounds at McEver Fields and reduce the scope of the July 4th event - Planning – $53,000
Additional projects such as the Delburg/Beaty small area plan will be delayed or assigned to in-house to staff instead of hiring consultants - Police – $39,850
This will reduce supplies, materials, training and gas savings as officers will continue to be required to walk for two hours during their shift - Public Works – $26,500
This will reduce contracted services, equipment, supplies and materials - Tourism – $27,945
The town will downsize special events and eliminate fireworks at the 2009 July 4th event
Mr. Brice will present the budget amendment to the board for consideration at the January Town Board Meeting. At that time, the board could vote to amend the current budget or return asking for additional cuts.
Is it possible to get the entire budget, including debt service, from the town website? There is no reason why local businesses can’t sponsor the annual fireworks.
Could we please see the interest payments and which banks are receiving the payments? Please post on the Mi-Connection website so the taxpayers have an understanding of the huge amount of debt.
Richard:
Thanks for the questions. I’d pose them to the Town Manager and Town Board directly if I were you. I will tell you what I know from covering these issues:
The approved Davidson budget is on the Town Website,
http://www.ci.davidson.nc.us/index.asp?NID=430
The town’s overall debt service equals about 9 percent of the budget for 2008-9. In some cases the debt service is covered all or in part by revenues.
In the case of MI-Connection specifically, town officials have reported that the cable system is continuing to pay for itself, including covering service on debt to buy and upgrade the system. The town also has received revenue from the system, primarily reimbursements from MI-Connection for money the town spent previously as it studied acquiring the system.
In September, I reported on financial results at the cable system, (CLICK HERE>). At the end of that article, you can click to download the fiscal year 2008 financial results released at the MI-Connection board’s September meeting.
Those results showed interest expenses of $2.09 million for the first partial fiscal year. The system had a net loss of $2.6 million, which was better than the projected net loss of $4.3 million. Looking at revenue and expenses trends only (apart from debt interest etc.), the system had an operating profit.
During the first three months of the 2009 fiscal year, the system was behind budget on operating earnings, though still showing an operating profit. That means apart from the debt, the system generates more revenue than expenses. If it is to succeed Here’s the income statement from July/August/September 08: http://www.davidsonnews.net/documents/101508miconnection2009.pdf
And the balance sheet: http://www.davidsonnews.net/documents/101508miconnxBalSheet.pdf … The system currently owes about $70 million in debt.
[Thanks for those documents to Jamie Gatton of the Gatton Report in Mooresville, who is also following the MI-Connection story along with us here at DavidsonNews.net. ]
To see all of DavidsonNews.net’s coverage of the cable system, go here
http://davidsonnews.net/category/cable-tv/
Thanks again for the question / comment.