New Madrid County officials tighten spending as another year of deficit spending forecast

NEW MADRID, Mo. -- With the prospect of another year of digging into reserve funding, New Madrid County commissioners have drawn up a leaner budget for 2018.

Prior to signing the 2018 budget in Tuesday's meeting, County Clerk Clement Cravens and Commissioners Don Day and Bobby Aycock summed up the spending for 2017 and what is ahead for 2018.

As 2017 began, the county had reserves totaling $3,627,525.95. With actual expenditures totaling $6,077,962.04 and revenues coming in lower than projected at $5,129,233.14, county reserves ended the year at $2,783,207.85.

"Even though it was a significant deficit it was considerably less than what was forecast, which was the $1.3 million deficit," Cravens noted.

When setting budget numbers for 2018, Cravens said each officeholder was asked to assist in reducing deficit spending.

"We asked that no one increase their budgets above their actual expenditures of 2017. In other words, try to curb any new expenditures for this year," he said, explaining in the past, the various office budgets typically included additional funding to cover any unforeseen costs, such as equipment breakdowns.

This year's budget projects revenues of $5,066,900 and expenditures of $5,865,042.96. With the continued deficit spending, Cravens forecasted the General Revenue Fund's ending balance on Dec. 31 at $1,985,064.89.

According to Cravens, the 2018 budget requests came in $730,363.89 less than in 2017.

Day praised officeholders for their efforts.

"We commissioners are actually very fortunate to have officeholders that are very, very cooperative and we have found that they are very, very practical," he said.

Several General Revenue line items will see an uptick in funding this year despite the belt-tightening.

Cravens noted the transfer from the General Revenue Fund into the 911 Fund will increase. He said this is due to new equipment and the contract with the city of New Madrid to provide dispatching services for the county.

"In 2017 we budgeted $324,000 for the salaries and fringe benefits and in 2018 that transfer will increase to $455,000, which equates into a $30,000 per month payment to the city of New Madrid for a total of $360,00 in dispatchers' salaries and fringe benefits," Cravens said. "We also owe $63,000 for equipment that was purchased by the city for the dispatch center throughout the year 2017. Our contract calls for the county to reimburse the city for equipment purchases in the dispatch center."

The commissioners noted with the purchase of equipment complete and the 911 dispatch center up and running costs will be reduced.

"There is the expense of being involved in the 911 business, the law enforcement business, but you have got to have it, you have got to have it," emphasized Aycock. "I don't know the statistics on it but I would say we have probably saved lives with what (the state-of-the-art equipment) we have bought."

Other line items in the General Revenue Fund budget seeing increases included elections due to the a statewide August primary and the November general election in 2018 and insurance and bonds, which Cravens attributed to an increase in the rates charged by the county's property, casualty and liability insurance company.

The county's revenue stream continues to hold steady. Cravens said the sales tax, the property tax and other revenue is approximately $5.1 million.

"If we can maintain the revenue, we can work on the expenses going forward," he added. Cravens urged any future appropriations for expenditures should be based on a high priority of need.

Aycock was more positive about revenue expectations, noting the continued growth at the north end of New Madrid County and the expectation of the opening of new businesses.

"The future is not looking so depressing," he said. "Hopefully that it is going to create jobs. There will be more money coming into our county to generate more revenue and people moving into our county. It is all about paychecks."

Work will continue on the county's airport. Cravens said New Madrid County will receive approximately $300,000 in Missouri Department of Transportation aviation allocation. This money will be added to the 2019 allocation and with a 10 percent match from the county will fund the approximate $549,000 reconstruction of deteriorating taxiways around airport hangers.

The other budget area noted by Cravens is the Road and Bridge Fund. Total revenue is anticipated at $4,278,000 in 2018. This includes $1.5 million in sales tax revenue and $1,500,000 in federal reimbursement for ongoing bridge replacement.

A total of $4,479,500 is budgeted in Road and Bridge Fund expenditures. The approximate $200,000 in deficit spending will be offset, Cravens said, by the $200,000 surplus in the fund from 2017.

Cravens said even with the budget reductions, the public won't see a reduction in service by county officials.

Added Day: "There is much more we are going to have to do in the next year. We are going to have to tighten up. Our officeholders are always willing to work with us on it."