No Changes In 2017-18 City, TMU Budgets

When the Trenton City Council meets on Monday night, April 24, members will be considering the same budgets for the city and Trenton Municipal Utilities they passed on March 27, then vetoed on April 10.
That’s because a meeting of the Finance Committee on Tuesday night resulted in no changes to the two documents, which address revenues and expenses for the 2017-18 fiscal year that begins on May 1.
There was much discussion concerning the two documents, which on April 10 were rejected by the council after Mayor Dr. Nick McHargue said he would veto the budgets because he wanted the two new members of the city council to be able to review the documents before action was taken. Both of those members – Glen Briggs and Larry Crawford – were present for the finance committee and asked questions specific to line items in both budgets.
Travis Elbert was elected chairman of the committee and was in charge of the meeting, which included much discussion around whether or not the city and TMU should be spending $20,000 each for economic development. As part of the original budget, both entities were to commit that amount to the North Central Missouri Development Alliance, a group that has been formed to promote economic activity in the area. The Grundy County Commission has already committed $40,000 to the efforts, which will also have private money with which to operate. Current Community Developer Ralph Boots will be the economic developer for that group, beginning on May 1, and will no longer be working for the city. The organization will be operated by an independent board, which will have a representative from the city as one of its members.
During the economic development discussion, Councilman Brad Chumbley suggested the city and TMU look at putting half of the funds committed ($10,000 each) into the economic group and use the other $20,000 to help tear down old structures in town, which he said he believed also constituted economic development efforts. Chumbley said that the city has “footed the bill” for economic development for the past several years and while he would like to see the city still involved with the new venture, he felt that $40,000 was more than the city needed to commit.
Mayor McHargue said he would favor putting all of that money into tearing down houses or other projects, leaving economic development funding with no money. Mayor McHargue has not supported the city’s participation in the new economic development group since its inception and Elbert said he didn’t expect that the mayor would change his mind. Elbert said that the city has complained for years about being the entity responsible for economic development and now that the county and others have come forward, he feels the city needs to step up and be a partner in this effort.
“We’re facing a plant closing and to say to the community that we are backing off economic development sends the wrong message,” he said.
Crawford suggested the $40,000 be kept in the budget and, after the first year, the council revisit its participation.
“This might become so successful we won’t need to put as much money, if any, into it,” he said.
Mayor McHargue also suggested the city look at paving the road at the city industrial park in north Trenton, something he said was promised to the two businesses located there – MC Power and Rapid Removal. Dr. McHargue did say there was no written documentation to that effect. Elbert noted that he had suggested using the $30,000 the city receives in tipping fees each year to put in a fund for such a purpose, once those monies have paid off the water line the city ran to the property. Elbert said the mayor had indicated during that conversation that the road was the responsibility of the township and not the city.
Chumbley eventually made the motion that each entity (city and TMU) put $10,000 in the budget for economic development, which was defeated after he was the only voice vote in favor. Elbert, Crawford and Larry Porter did not voice an affirmative vote to the motion.
During the discussion, it was noted that the city has been able to increase its fund balance over the past three years, with this year’s ending fund balance anticipated to be nearly $1.4 million. That is due in part to a 5 percent savings in expenditures for the city along with an 8 percent increase in revenues, resulting in a $392,000 fund balance increase.
There was also a discussion of the $38,000 the city spends for meetings and memberships. City Clerk Cindy Simpson noted that some of the meetings city officials attend are required by the city’s insurance carrier to stay in compliance.
The TMU budget was also discussed, with questions asked about several line items, including the $62,000-plus the utility pays to the city each year. City Clerk Cindy Simpson said those funds go into both the general revenue and capital projects budgets. There were also questions concerning substation maintenance, rate increases and overtime costs.
While the committee did not take any action regarding employee salary increases, which were not included in the regular budget, the committee did vote to recommend that the city set aside around $100,000 in the 2018-19 budget for that purpose. It was noted that employee evaluations were not done this year and Crawford indicated he was uncomfortable with giving raises without them. He stated his preference in merit raises, noting that performance should be a key component in giving pay hikes.