The City Finance Committee has started our 1st quarter budget review of our City of Roswell FY23 budget (July 1, 2022 thru June 30, 2023). I report to you some of what I found.
Newly elected council members and I, had less than 90 days to balance and close our FY22 (July 1, 2021 thru June 30, 2022) books. According to State Law, the city is required to do a base budget for FY23 that is sent to the State for their review and then the final budget for FY23 is completed all in less than 90 days. We had many special meetings to complete these tasks. To be better informed we are planning many more during this fiscal year. We will also complete a top to bottom budget review of FY23 before starting the FY24budget.
Our Enterprise Funds are under stress! Enterprise Funds are funded by charging the user for services. They should be self-sustaining and be able to support themselves including any emergencies that may arise. By city bond contracts we are required to have a one hundred thirty percent balance to make future bond payments. We have several outstanding bond payments listed below.
Starting in FY16 to our FY23 budget $21,039,425 was transferred out of our enterprise funds, as follows, $5,691,518 from the Airport Fund, $6,459,948 from Solid Waste, and $8,887,659 out of Water and Sewer. All of these transfers called Indirect Costs went straight into the General Fund. While this practice may be legal, I believe it violates the intent and spirit of our Enterprise Funds!
In balancing the FY22 budget $3,518,203 was transferred to the General Fund from various Enterprise Funds, including $942,953 from Airport, $1,105,889 from Solid Waste, and $1,469,361 from Water. These transfers were for Critical and Administrate Costs. I could not find where any of these costs are defined by City Ordinances or how the amounts were determined. A problem that we will address going forward!
Some other adjustments were made to make bond payments. To name a few, i.e. Smart Meter Loan $1,551,150, Waste Water Treatment Plan $198,025, Waste Water Treatment Plant Loan $844,250, and Solid Waste $568,777. While these adjustments are normal, routine, and customary methods used by the City of Roswell, the current council will ensure that the required contractual bond balances will be maintained.
What needs to be done? We need to manage our Enterprise Funds as distinct, separate funds, with healthy balances, as intended by State Law. Actual Critical and Administrate costs for shared tasks should be defined and a value established in City Ordnance. I will watch our expenditures while meeting the needs of our community. This cannot happen over one budget cycle. A long-term plan has to be developed and needs to be started now!
Our budget does have some good news. In FY22 $12,365,034 was budgeted for Roads, and Special Electronics and Engineering, only $6,694,168 was spent. The FY23 has budgeted $11,313,827 for these same line items. We budgeted less than FY22 but still more than the actual amount spent. Other high lights in FY23 include the addition of five new Roswell Police positions along with the needed equipment. I am informed that recruitment for these new officers has begun. Four new Fire Trucks have been ordered and are expected to arrive before year's end to replace trucks that need to be retired.
