New Madrid Co. Commissioners release 2016 budget

The New Madrid County Commission met Monday, February 1, for the annual budget hearing for 2016. 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 2016 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 2016 fiscal year with a reserve balance of just over $4.1 million. The 2015 budget projected deficit spending in the fund of $88,000, however, actual expenditures totaled approximately $685,000 less than appropriations, while revenue receipts in various accounts were higher than projected, resulting in a budget surplus of over $500,000. The majority of the 2015 appropriations that were not expended can be attributed to:

1) A significant reduction in health insurance expense, primarily due to the County's implementation of a partially self-funded health plan. Health care expenditures were reduced by well over $200,000 from the previous year.

2) A reduction of just over $80,000 in jail operating expense. In 2014 the County Commission decided to cease housing prisoners in the county jail and contracted with Pemiscot County for the housing of prisoners. Due to this change, a significant increase in prisoner housing expense was initially anticipated and budgeted for in 2015, however jail operating costs actually decreased.

3) Departmental expenditures were approximately $125,OQO under budget, which can be attributed to county officeholders exercising a high priority of need when making purchases for their office operations.

The 2016 budget includes revenue estimates of $5,385,218.00 and appropriations for expenditures of $5,637,777.49, which projects deficit spending of approximately $250,000 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 2016 fiscal year with a balance approximately the same as on January 1.

The following aspects of the 2016 budget are explained in greater detail:

1) Sales tax revenue in 2015 continued the trend of modest annual increases. In 2016 the County is cautiously optimistic that sales tax revenue will remain stable, however, certain economic conditions could result in a reduction from years past. As has been the case since passage of a county-wide sales commonly referred to as the "Revenue Sharing Sales Tax", 25% of the 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) Faced with a health insurance renewal increase of nearly 45% in 2015, the county implemented a partially self-funded health plan that provided employees with comparable benefits to the former "traditional" health plan and lowered health care costs by $244,000 from the previous year. The

2016 budget of $500,000 reflects similar anticipated health insurance costs as those actually incurred in 2015.

3) A transfer of $110,000 from the General Revenue Fund into the 911 Fund has been budgeted in 2016 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.

4) The 2016 Airport budget includes approximately $365,000 of MODOT Aviation grant allocations that have been appropriated for the repair of cracks, sealing and marking the runway.

COUNTY ROAD AND BRIDGE FUND

With the passage of the Transportation Sales Tax in 2015, the Road and Bridge Fund will collect approximately $1.4 million in sales tax revenue in 2016. The County Commission reduced the Road and

Bridge property tax rate by 50 percent as promised upon approval of the sales tax by voters, and the additional revenue generated by the sales tax will be appropriated for as many road improvement projects in 2016 as

possible.

Revenue in the Road and Bridge Fund is anticipated to be $5,267,0000 in 2016, of which $2,150,000 is federal reimbursement for ongoing bridge replacement projects. A total of $5,191,600 is budgeted for Road and Bridge expenditures in 2016.

With the loss of Noranda's tax payment, Cravens said that he does not see the commission making many changes, especially with the sales taxes in place and saving from housing the prisoners in Pemiscot County.

Plus, the commission did authorize a seven percent increase in pay to all employees.

Another issue that has helped the county is the new partially self-funded insurance plan.