City of Paris Budget, FY 2006-07 - Proposed

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Budget Message August 5, 2005 To: Mayor and City Council From: Tony N. Williams I have prepared for your consideration two versions of the proposed budgets for operation of Paris City Government for the coming fiscal year. One budget projects revenues and expenses to continue collection and disposal of residential garbage by city staff and city equipment. The. second budget uses a private contractor to perform residential garbage . servIce. .. "- The two budgets are identical but for residential garbage privatization and how the savings can be used to benefit the community. The savings amount to $553,703 per year which will be used to: 1. $250,000.00 per year for additional street improvements/maintenance 2. Triple the amount of removal of dilapidated buildings (current budget of $80,000.00 to change to $245,000.00 annually) 3. Help retain city workforce by providing competitive retirement benefits (restore retirement to level before budget cut of September 2004) 4. Establish a preventive maintenance program for all vehicles in the city's fleet to try to increase useful life of city equipment. Both proposed budgets are balanced budgets (revenues exceed expenses) without the use of reserves to fund operations. Each budget version proposes a 3% cost of living salary increase for employees. The budget version proposing contracting of residential garbage service has fourteen (14) fewer employees than does the non-privatized version. Because of my concern that we have inadequate operating reserves, both versions have a significant surplus of revenues over expenses. I am proposing the same total tax rate of .69225 per $100 of tax evaluation for 2005-2006 as last year.