County commissioners release 2015 budget

The New Madrid County Commission met Monday, Feb. 1, for the annual budget hearing for the 2015. The meeting was held in the office of County Clerk and Budget Officer Clement Cravens. He presented the docket and records of this Commission, information and estimates for the year 2015 as required by County Budget Law (Sections 50.525 to 50.745, RSMo.) The budget Report is as follows:

GENERAL REVENUE FUND

The General Revenue Fund is beginning the 2015 fiscal year with a healthy reserve balance of just under $3.7 million. The 2014 budget projected deficit spending in the fund of approximately $455,000, however, actual expenditures totaled approximately $425,000 less than appropriations, while revenue receipts in various accounts were higher than projected, resulting in an actual deficit of less than $25,000. The majority of the 2014 appropriations that were not expended can be attributed to: I) MODOT Aviation grant entitlements totaling approximately $840,000 were appropriated, but only approximately $700,000 was expended; 2) approximately $115,000 of departmental appropriations was not spent, which can be attributed to county officeholders exercising a high priority of need when making expenditures from their budgets; and 3) a budgeted transfer of $200,000 to the Road and Bridge Fund was not processed.

The 2015 budget includes revenue estimates of $5,163,277.08 and appropriations for expenditures of $5,251,193.87, which projects deficit spending of approximately $90,000 in the fund. However, New Madrid County has historically estimated revenues conservatively, while overestimating expenditures in certain budgets to provide for self-insured risk expense and unforeseen expenditures that may occur during the year. In this budget officer's opinion, if current revenue receipts are maintained, and barring major unforeseen expenditures, the General Revenue Fund should end the 2015 fiscal year with a balance approximately the same as on January 1.

The following aspects of the 2015 budget are explained in greater detail:

1) Sales tax revenue in 2014 increased by approximately $160,000 over 2013 totals. In 2015 the County is anticipating sales tax revenue to remain stable or increase slightly. As has been the case since passage of the "Revenue Sharing Sales Tax", 25% of those proceeds -approximately $400,000 -will be distributed quarterly to the 15 incorporated cities, towns and villages pursuant to the statute authorizing the collection and distribution of the tax. This will provide approximately $25,000 of sales tax revenue for each city in New Madrid County.

2) The renewal of the County's 2015 health insurance plan would have increased premiums by 45%, which required the County to explore a more affordable form of coverage. The decision was made to change to a partially self-funded health insurance plan that mirrored the county's current benefits for employees, while providing opportunities for the County to potentially save $200,000 to $300,000 per year in health insurance expense. The General Revenue Fund budget for premiums and self-insured risk expense in 2015 is $565,000, with total appropriations of $925,000 for health insurance expense in the various funds that contain health insurance budgets. Health insurance expense remains one of the most volatile budget concerns for the county.

3) The County Commission closed the jail facility in July 2014 due to the cancellation of inmate liability coverage by the County's insurance carrier, with the County eventually contracting with Pemiscot County to house New Madrid County's prisoners. The cost of prisoner housing elevated appropriations for the Sheriff and Jail budgets to a total $1,359,154.49 in 2015, an increase of approximately $135,000 over previous law enforcement budgets.

4) A transfer of $110,000 from the General Revenue Fund into the 911 Fund has been budgeted in 2015 due to continued revenue shortfalls in the fund. In addition, the New Madrid County Ambulance District will continue to pay $30,000 into the 911 Fund for dispatching services provided by the county. Consolidation of local 911 call centers is being investigated to lower operating costs so subsidization of the 911 Fund will not be necessary.

5) The 2015 Airport budget includes approximately $300,000 of MODOT Aviation grant allocations that have been appropriated for a pavement & subsurface investigation of the cause of recently discovered cracks in the runway and the repair of the cracks. In 2014 the Airport Parking Apron Expansion project was completed, with a runway extension as the primary project planned for future years.

COUNTY ROAD AND BRIDGE FUND

This fund begins the year 2015 with cash reserves under $700,000, which reflects deficit spending in the fund of nearly $1,000,000 since 2008. Based upon the current level of funding, providing the required maintenance for the 600+ miles of roads in the county will completely deplete the fund's reserve balance in approximately three years unless additional revenue sources become available.

Transfers from the General Revenue Fund in recent years have prevented the reserve balance in the Road and Bridge Fund from being exhausted already, however, due to spiraling increases in law enforcement expense, 911 call center expense and health care costs, the General Revenue Fund can no longer afford to subsidize the Road and Bridge Fund as in the past.

Revenue in the Road and Bridge Fund is anticipated to be $3,467,000 in 2015, with appropriations for expenditures totaling $3,724,500. Included in the budget is $1,500,000 appropriated for bridge replacement projects through the federal off-systems bridge replacement program.