City Administrator Mercy Rushing presented a second look at the working budget for the 2016-2017 fiscal year to the Mineola City Council last Monday during their regular monthly workshop.

Mayor Rodney Watkins said that Rushing and Financial Director Cindy Karch had been working on the budget every day and while things have gone better for the city in the past four or five months, “Nothing has changed from last year to this. We need to get another year under our belt. It’s going to be a tight year.”

While money saving efforts have been made in the current year, the mayor noted that no vital services have been cut and the city is striving to maintain full staff.

“We’re treading water guys,” Rushing told the council. She noted that $180,000 had been cut from requests by department heads and there are “some decisions we’ll have to make over this budget in the next few weeks. It’s going to be tight.” The budget and tax rate are set for approval by the council on Sept. 26.

In the following Monday’s regular meeting, (after Monitor deadline) the council planned to set a proposed rate, which they must do 30 days prior to adoption. They can set a lower tax rate, but can’t go over the proposed rate. Rushing explained that the water fund expenditures in next year’s budget exceed revenue by $6,842. Further, Karch noted that this was the first month that the city actually had enough money in the water fund to cover all of the customers’ refundable deposits.

In the proposed budget, Rushing and Karch presented comparisons with revenue based on the effective tax rate of 53 cents per $100 valuation, which is lower than the current year’s rate of 55 cents. The effective tax rate is the rate that generates the same amount of revenue as the previous year and since property values in the city have increased, the rate decreased slightly. However, the same amount of tax revenue would leave a $50,579 deficit after expenditures. Rushing explained that the city is having to pay for some inspection services on some of the major projects due to the retirement of Johnny McCoy, who was doing some inspections and working with contractors.

A 3.17 percent increase in the tax rate, which would actually be the same rate as the current year, would leave a $11,869 deficit. A five percent increase over last year would bring the budget into the black with $10,500 over. An 11 percent, which is the rollback rate, would bring the city $93,000 net gain. Rushing said she remembered in years past when Dion Miller was the city administrator and he recommended that the council approve tax increases just below the rollback rate.

Expenditures on the horizon include the need for a new wastewater treatment plant within five years. An estimated list of street repairs was prepared by Randy Morgan. With the city’s street crews doing all the work and using oil sand, the list totaled over $400,000. Rushing said there are no raises in the budget for anyone and no new capital improvements.

Also, in the August workshop Rushing noted that she intended to honor Lori Shipman, who is retiring from the city at the end of this month, for the Employee Spotlight of the Month. Rushing noted how much Shipman was going to be missed with her “wealth of administration knowledge.”

“I’m really going to miss her,” Rushing said. “What an invaluable employee she has been to the city.” But, she said Shipman refused a retirement party. That was why Rushing was submitting her as the employee of the month.

The mayor agreed saying that Shipman had helped him to understand the state of the city’s finances. “We would probably not be sitting here in the shape we are in today if it weren’t for Lori... I hate that she won’t let us honor her, but that’s the way Lori is.”

In other business in last week’s workshop, Rushing said she became aware that out of 28 cities that Republic Services serves for waste disposal, only two do not also contract with them for commercial services. “Those two are Mineola, Texas and Quitman, Texas,” Rushing said.

She began looking into the matter and found that the ease of working with the company that does the residential trash pickup service was an advantage. Gene Keenon of Republic Services was at the workshop and said that many towns have found that the pricing was much fairer because other waste management companies will strike different deals with businesses based on their size. “Little `mom and pop” companies don’t have the same buying power of the larger companies,” he said, noting he had a soft spot for those type businesses.

Other advantages include the city having knowledge of whose heavy trucks are driving on the streets of their town. Keenon noted the city would know that disposal was occurring at certified landfills “and not some pasture somewhere in East Texas.”

Additionally, the company would pay the city a franchise fee of $2,000 a month. Republic already serves 121 commercial customers which leaves 34 who are served by three other companies. The city would be in charge of the billing, just as they are for the residential customers.

Watkins, “playing devil’s advocate,” asked what the disadvantage would be. Keenon said the only thing he was aware of was a complaint against bigger government because one company would have the franchise.

The meeting also included the council:

*hearing about several requests for street closures. One would be 7 hours on Oct. 8 for Chicks in the Sticks by the Merry Merchants at the intersection in front of the gazebo; the other would be 7 ½ hour on Sept. 3 for a gospel concert at the same intersection and parts of Commerce Street; another would be for the Iron Horse Festival and Car Show on Oct. 29 and would be Commerce and part of Johnson Streets;

*learning that the Planning & Zoning Commission has approved a request to replat two lots where the Ranchero restaurant was located upon the request of a developer interested in the property;

*hearing there are vacancies to be filled on the P&Z commission, as well as the Board of Adjustments;

*hearing that that Odessa Slayton, Audrey Turman and Christine Creswell are recommended new members to the museum board. They would fill vacancies left by Ray Blakeney, Charles Vanderslice and another position;

*learning that Neal Duncan and Janna Castloo are agreeable to being reappointed to their positions on the Wood County Industrial Commission as Mineola’s representatives;

*learning that the police department is still waiting to hear about a grant for body cameras and they have a new animal control officer;

*heard that nature preserve manager Buster Green is likely out for several more weeks on medical leave;

*heard there are openings in the street department;

*learned that Shanna Richey had completed court classes to serve as city court clerk Sherry Vann’s back up.

Ward 3 Councilperson Novada Bigham was absent from the meeting.