|Reeds Spring City Administrator Bill Bell|
The Reeds Spring Board of Aldermen passed a $785,000 operating budget at last weeks Board of Alderman meeting.
The city anticipates expenditures of $681,510.
City Administrator Bill Bell says the city expects an increase in property taxes and sales tax revenue in the next year.
Based on the city’s outlook for business growth and the current economic climate and revenue sources, city leaders expect increases of 5% in property taxes, 4.75% in sales taxes and 10% in building permits.
An increase of 3% in water and tax revenue is also projected. Municipal court fines are expected to decrease and there could be a slight spike in motor tax fuel revenue.
The slight increases in revenue will be offset by bigger expenditures like personnel costs that are projected to increase by 5%.
Bell says the biggest expenditure can be directly attributed to a rise in employee health care costs.
One of the biggest loses for the city are the ongoing problems in the waterworks system in the city.
Bell said city workers will not receive a raise, but hopes to readdress that issue in an anticipated revision to the budget later this summer.