Photo by Leah Ingram Eagle.
Chelsea is budgeting for a $411,591 projected surplus for the year, according to Mayor Tony Picklesimer.
The city of Chelsea entered Fiscal Year 2020 with a total operating budget of $12,675,476; $9 million of that is revenue, and the other $3 million is for capital projects.
The newly implemented 1-cent sales tax that went into effect Oct. 1 is projected to bring in close to $1.8 million, which will go straight into the new education account strictly for funding for requests from the five Chelsea schools for applications received from the Nick Grant program.
That leaves the actual budgeted revenue at $10,144,125, which includes $6.8 million in sales tax revenue.
The general fund expenditures — which include payroll operations, planning and zoning, library, maintenance department, parks and recreation, the COP Program, citizen protection contracts, streets and roads, the Chelsea Community Center, Senior Center and Historical Society Museum — total $6,125,244.
The Fire Department’s budget is $3,168,590. While the construction of the space was in the capital budget, the 2020 budget will include some additional equipment to get the new Station 33 up and running. This includes an upgrade of exhaust system, a generator to ensure the station always has power and a flagpole.
“I’m excited about Station 33,” Mayor Tony Picklesimer said. “Having a new fire station on the east end of town just five minutes from Chelsea Park is tremendously important.”
Debt service payment on the city’s loans is $1,554,700 for the year. The city transfers $64,000 each month to the capital projects fund totaling $768,000 per year.
The aforementioned citizen protection contracts, which total just over $1 million, pays for the safety of the city with two dedicated police officers, along with school resource officers at each of the five schools (two at the high school).
“The budget includes the addition of another Shelby County Sheriff, so Chelsea will have two deputies around the clock, plus surrounding coverage from Shelby County,” Picklesimer said.
The city will also receive between $100,000-$200,000 because the youth leagues are now run through the city since the hiring of a Parks and Recreation director.
The Rebuild Alabama gas tax is estimated to bring in $49,676 to the city, a projection from the Shelby County Commission. The actual number will be determined on a percentage basis, depending on how much money is brought in for the county.
“This is money we weren’t expecting and plan to use it for road projects,” Picklesimer said.
Picklesimer said he is projecting a revenue increase of 4%, which is a bit less than the city has been achieving since 2010.
“For 2018-19, we are just going to hit it and not surpass it,” he said. “Last year, we projected 5% growth and came in at 4.8%. In my first two years in office, our revenue growth has been around the 7% range, and while it would have been perfectly acceptable to put in 5% gain to make the surplus number look better, I decided to budget what my gut tells me.”
All of the city employees also got a minimum 3% cost of living increase.
Picklesimer said while most cities present a balanced zero budget, Chelsea is budgeting for a $411,591 projected surplus for the year.
