The City of Mexico continues to move forward with the hope of adding to its progress and improved infrastructure with their recently proposed budget for the 2023 Fiscal Year.
Included in the budget of nearly $27 million, the city and Bruce Slagle, Mexico’s city manager, are working toward a number of capital projects that will ultimately move Mexico onward and upward.
The top grants expected to come through for the city include those for the stormwater infrastructure ($2.5m), stormwater system ($2.5m), wastewater fine grit ($339,700), parks foundation – pool slide ($200,000), airport runway, lighting and apron ($1.146m) and the Muldrow sidewalk ($181,500).
Significant capital projects and/or programs that are included in the General Fund Budget: Patrol vehicles ($100,000), pistol firearms upgrades ($29,216), annual stormwater improvements ($10,000), streets and maintenance ($165,000), building and grounds (just more than $200,000),
Slagle also wrote that, “Every departmental budget was combed through for savings and many departmental needs were not funded. There are some large ticket items in the near future, such as repairs to the Teal Lake Dam, Town Branch Improvements and a new City Hall that will require consideration.”
The Breakdown
CAPITAL PROJECTS FUND
This fund has been established and activated for the receipt, appropriation and disbursement of funds received for capital improvement projects.
The City applied for two separate ARPA-MoDNR Grants for Stormwater Infrastructure and System Improvements.
The two grants total $5,000,000 and will require a City match of $525,001 from City-ARPA funds.
WASTEWATER CAPITAL IMPROVEMENT PROJECT FUND
This fund has been established and activated for the purpose of meeting upcoming wastewater capital improvement projects.
The City applied for an ARPA-MoDNR Grant for the replacement of the fine grit filter at the Wastewater Treatment Plant and $339,700 is estimated to be received this budget year.
This budget reflects the first phase of a 3-year project and will require a City cash match from the Wastewater Operations Fund.
WASTEWATER OPERATION FUND
Budgeted revenues for Fiscal Year 2023 are estimated at $3,397,440. Operating expenditures are estimated at $2,301,178, an inter-fund transfer of $748,050 to the Wastewater Debt Service Fund, an inter-fund transfer of $650,000 to the Wastewater Capital Improvement Fund, an inter-fund transfer of $30,000 to the Wastewater Private Line Repair Fund and a project reserve of $80,000 for total expenditures of $3,809,228.
“All cities across America are working on reducing Inflow and Infiltration (I&I) into their wastewater collection systems,” Slagle wrote. “The standard reduction capabilities are normally achieved by lining sewer mains and laterals, point repairs, pipe replacements and rehabilitating manholes. The City of Mexico has a program and plan to perform system improvements that reduce I&I into the collection system. This has been an ongoing effort for several years and includes a private sewer line repair assistance program.”
Further information
SANITATION OPERATION FUND
Revenues received for the sanitation/garbage utility bills are deposited into this fund.
The expenses for contracted residential refuse collection services, spring and fall cleanups, recycling and household hazardous waste disposal are paid out of this fund.
The expenses for running the forestry and yard waste disposal operations are split between the General Fund and the Sanitation Fund.
The ending fund minimum balance by policy for the Sanitation Fund is 25 percent of operational expenses less grants and non-recurring capital. The ending fund balance is estimated to be 54 percent.
ECONOMIC DEVELOPMENT FUND
The Budgeted revenues for Fiscal Year 2023 are estimated at $317,817; expenditures are estimated to be $170,260, plus an interfund transfer of $121,169 to the MAB NID Fund for total expenditures amounting to $291,429.
The ending fund balance for 2023 is estimated to exceed the fund balance policy goal.
PARKS AND RECREATION FUND
Revenue from a dedicated park property tax in the amount of 9.96 cents (.0996) per 100 dollars of assessed valuation, a one-half of one percent dedicated parks sales tax and charges from user fees for parks, pool and recreation programs are deposited into this fund.
The ending fund balance goal by policy for the Parks and Recreation Fund is 17 percent and the ending fund balance is estimated to be 22 percent.
HEALTH AND ANIMAL CONTROL FUND
Revenue from a dedicated public health tax in the amount of 19.92 cents (.1992) per 100 dollars of assessed valuation, animal licensing and charges for animal impoundments are deposited into this fund. The costs for running the animal shelter, nuisance abatements, dangerous building demolitions and pest control are paid out of this fund.
The ending fund balance goal by policy for the Public Health Fund is 25 percent; however, the ending fund balance is estimated to be 57 percent.
AIRPORT FUND
Revenue for this fund is reliant on an interfund transfer from the General Fund along with hangar rental and a percentage of fuel sales.
Operating expenses for the Fixed Based Operator’s Management Contract and the day-to-day airport operational expenses are paid out of this fund. Capital improvement projects in this fund are reliant on State administered DOT Grants.
Budgeted revenue for Fiscal Year 2023 is estimated to be $1,415,014 with expenditures estimated at $1,478,133.
A $240,000 transfer from the General Fund is being made to support base operations and to meet the local match requirement necessary to obtain MoDOT Aviation Grants. The ending fund balance is projected at $39,716, which meets the 17 percent minimum ending fund balance policy.
The capital expenditure for a new approach and main runway lighting is in the amount of $1,400,000 and is funded 90 percent by a DOT Grant. The City also expects to spend $10,000 to support pavement maintenance projects at the Airport.
CAPITAL IMPROVEMENT SALES TAX (C.I.S.T.) FUND
Revenue for this fund is from tax on retail sales set at the State Statute limit of one-half of one percent. This sales tax pays for the construction, maintenance and repair of streets, curbs and gutters, stormwater piping, bridges, drainage ditches and culverts, as well as any other capital improvements that may be needed for the growth and development of the City of Mexico.
The ending fund balance is projected to be at 12 percent which meets the fund balance policy goal of 10 percent.
CAPITAL PROJECT RESERVE USE TAX FUND
This fund was originally established to transfer unreserved surplus funds from the City’s General Fund to be held in reserve for future capital projects.
As a part of the City’s Debt Management Plan, the City plans ahead, saves money and uses a pay-as-we-go approach for most capital project purchases.
The estimated revenue for 2023 into this fund is $521,010 with expenditures estimated at $386,164.
