7/9/13 Millersburg expects $2 million carryover going in to 2014
By Nick Sabo
July 9, 2013
348
SUMMARY: Healthy carryover due to unexpected increases in water tap fees, inheritance tax settlement
The Village of Millersburg should go into 2014 with a healthy carryover equalling about eight months of operating expenses.
Village council Monday July 8 approved a 2014 tax budget presented by clerk/treasurer Karen Shaffer that shows an estimated carryover from 2013 of $2,107,567. The total estimated operating budget for 2014 is $3,146,400.
The carryover is expected to grow slightly through 2014, beginning 2015 at an estimated $2,154,927, according to the tax budget.
The carryover balance has survived several rocky years as the village saw losses in revenue due to the recession and cuts to the budget from the state. The carryover from 2010 was $1,347,525 and stood at $1,276,017 at the end of 2011.
However, the carryover saw quite a bit of unexpected growth in 2012, Shaffer said, boosted by an increase in water tap fees and an unusually large inheritance tax collection.
The 2012 inheritance tax collection was approximately $200,000, Shaffer said, and the sewer line item received $132,000 in tap fees. The carryover balance further grew as a result of savings from previous budget cuts, including the elimination of five employee positions, Shaffer said.
On an average year, the tap fees usually fluctuate between $5,000 and $12,000 Shaffer said. Shaffer said tap fees were up due to new accounts in the village as well as fees from the new fairgrounds site.
Despite the elimination of the inheritance tax and decreased local government funding from the state going into 2014, Shaffer said she sees the carryover continuing to grow due to the past budget cuts and revenues from a new, .5 percent income tax. Shaffer further said building up the carryover to its current level was never a stated objective of the village, but she is hopeful council will keep it at a fiscally healthy amount.
If we can keep nine months of operating expenses as a surplus, that would be wonderful, Shaffer said. Its understandable if you have (extra money), you want to do things with it for the village. Its still important to save that money back so were not in the same position we were in.
The total revenues for 2014 are estimated to come in at $3,193,760, $47,360 more than expenditures. The July tax budgets are required by the state auditor and represent a projection of what finances may look like at years end.
In other business, council voted to approve placement of a 5 mill renewal levy on the Nov. 5 ballot. Mayor Jeff Huebner said the levy was first passed in 1979 and represents no new taxes. The levy generates $106,000 per year, Shaffer said.
Brent Hofstetter was sworn in Monday night to fill the council seat formerly held by Mike Uhl. Uhl resigned from council in June, citing family needs and health issues.
Uhl will continue to serve the village as a community representative on the planning and zoning board. The community representative position was formerly held by Hofstetter.
