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City reduced some services in response to decreased revenues
By Carol Broeder/Arizona Range News
"The city responded quickly to the downturn in revenue and is maintaining a balanced budget," said City Manager Pat McCourt, adding, "We know that the reduction in service levels has hurt some programs and for that we apologize."
Ruth Graham, the city's finance director, presented the city's first quarter financial statements to the Willcox City Council last month, prompting the comments later from McCourt.
In an effort to save money, the city has reduced its own expenses internally.
"Nobody got a raise this year, except for me," said McCourt, referring to the fact that he had received a $5,000 per year raise July 6, in the midst of a city wage freeze.
However, that raise was contracted when McCourt was first hired, if he received a positive six-month review.
McCourt is scheduled to receive his annual review in January 2010.
The city is only replacing essential positions on a case-by- case basis.
"There have been no promotions and some vacancies are not being filled," he told the Range News.
"Our goal was to minimize impact on the public," said McCourt, adding that budget constraints show up "in the little things. It leads to our inability to respond, especially in terms of requests made of public works, for parades, Little League, etc."
He cited the example of not having staff available to put up and take down barricades for parades or to water the ball fields more often.
McCourt referred to the letter to the editor on the condition of the historic cemetery, which was written by Steven L. Rowe of Madison, Miss., and published in the Nov. 25 edition of the Range News.
"He's right," McCourt told the Range News. "The old cemetery has been neglected for a long time. But we just don't have the staff right now to keep it up."
The city uses a fiscal year that begins July 1 and ends June 30 each year, McCourt explained in a statement issued Nov. 6.
"The city's operations for the months of July through September 2009, the first quarter of FY 10, show that revenues and expenses are on track," he said.
The money in the General Fund is for the city's daily operating expenses.
"General Fund revenues total about 19.4 percent of the budget, while expenses are at about 20 percent."
The General Fund has two major sources of funding: local revenues and state tax collection.
The local revenues, which the city council controls, are in line with budget projections, including the city sales tax, McCourt said.
"Property tax collections are received by the city in two major chunks, in December and May," he said. "The current receipts picture does not include this seasonal revenue."
State tax collection, which is the second major source of money into the city's general fund, includes state sales tax and a part of the state income tax, said McCourt.
"The state's sales tax receipts are down, and the city's share is at 21 percent of the budget estimate," he said.
"There has also been a very large decline in the state income tax revenue sharing. Budget projections were reduced by 13 percent from last year, and actual revenues received are down by about $20,000 from last year to date," said McCourt.
The Highway Users Revenue funds (HURF), or Streets Department, is kept separate from the General Fund.
The city places the one-percent local sales tax into this fund.
"The state also provides a share of the state gas taxes to the city," said McCourt, explaining that the city does not levy any gasoline tax.
"The state has not yet approved the state FY10 budget, and current proposals indicate that state HURF distributions to cities and towns will be down from initial projections and down from previous years," he said.
Grant revenues and expenses total 17-percent of the city's budget, and these are also kept separate from the General Fund.
"The Community Center renovations for the current phase have been completed," said McCourt, adding that it was done "with grant funds from the Community Development Block Grant (CDBG) and local matching money from the general fund."
"Engineering is underway for the library renovation project," which is scheduled for completion in the 2009-10 fiscal year, he said.
This is being paid for by the bond issue approved by the voters of Willcox," said McCourt, adding that the city continues to pursue grants projects the people of the community want.
The gas fund received about 11-percent of its annual revenues and expended 12 percent of expenses.
"Gas (utility) revenues and expenses are seasonal, peaking in the winter months," McCourt explained.
Water utility revenues for the first quarter were at 28 percent of the budget, while operating expenses totaled about 20 percent, he said.
"Water revenues are also seasonal, with higher revenues in warmer months when usage is higher," said McCourt.
Sewer utility revenues total about 27 percent of the budget, while expenses totaled 19-percent without consideration of capital projects, he said.
The Refuse or Solid Waste Fund is about at break even, which is normal, explained McCourt.
"We continue to monitor all sources of income and expenses and will adjust as necessary to maintain a balanced budget," he said.
"We appreciate your input and welcome questions from the public."
Contact Finance Director Ruth Graham or City Manager Pat McCourt by mail at 101 S. Railroad Ave., Willcox, Ariz., 85643, or by telephone at (520) 384-4271, or via email at pmccourt@willcoxcity.org or rgraham@willcoxcity.org.
Ruth Graham, the city's finance director, presented the city's first quarter financial statements to the Willcox City Council last month, prompting the comments later from McCourt.
In an effort to save money, the city has reduced its own expenses internally.
"Nobody got a raise this year, except for me," said McCourt, referring to the fact that he had received a $5,000 per year raise July 6, in the midst of a city wage freeze.
However, that raise was contracted when McCourt was first hired, if he received a positive six-month review.
McCourt is scheduled to receive his annual review in January 2010.
The city is only replacing essential positions on a case-by- case basis.
"There have been no promotions and some vacancies are not being filled," he told the Range News.
"Our goal was to minimize impact on the public," said McCourt, adding that budget constraints show up "in the little things. It leads to our inability to respond, especially in terms of requests made of public works, for parades, Little League, etc."
He cited the example of not having staff available to put up and take down barricades for parades or to water the ball fields more often.
McCourt referred to the letter to the editor on the condition of the historic cemetery, which was written by Steven L. Rowe of Madison, Miss., and published in the Nov. 25 edition of the Range News.
"He's right," McCourt told the Range News. "The old cemetery has been neglected for a long time. But we just don't have the staff right now to keep it up."
The city uses a fiscal year that begins July 1 and ends June 30 each year, McCourt explained in a statement issued Nov. 6.
"The city's operations for the months of July through September 2009, the first quarter of FY 10, show that revenues and expenses are on track," he said.
The money in the General Fund is for the city's daily operating expenses.
"General Fund revenues total about 19.4 percent of the budget, while expenses are at about 20 percent."
The General Fund has two major sources of funding: local revenues and state tax collection.
The local revenues, which the city council controls, are in line with budget projections, including the city sales tax, McCourt said.
"Property tax collections are received by the city in two major chunks, in December and May," he said. "The current receipts picture does not include this seasonal revenue."
State tax collection, which is the second major source of money into the city's general fund, includes state sales tax and a part of the state income tax, said McCourt.
"The state's sales tax receipts are down, and the city's share is at 21 percent of the budget estimate," he said.
"There has also been a very large decline in the state income tax revenue sharing. Budget projections were reduced by 13 percent from last year, and actual revenues received are down by about $20,000 from last year to date," said McCourt.
The Highway Users Revenue funds (HURF), or Streets Department, is kept separate from the General Fund.
The city places the one-percent local sales tax into this fund.
"The state also provides a share of the state gas taxes to the city," said McCourt, explaining that the city does not levy any gasoline tax.
"The state has not yet approved the state FY10 budget, and current proposals indicate that state HURF distributions to cities and towns will be down from initial projections and down from previous years," he said.
Grant revenues and expenses total 17-percent of the city's budget, and these are also kept separate from the General Fund.
"The Community Center renovations for the current phase have been completed," said McCourt, adding that it was done "with grant funds from the Community Development Block Grant (CDBG) and local matching money from the general fund."
"Engineering is underway for the library renovation project," which is scheduled for completion in the 2009-10 fiscal year, he said.
This is being paid for by the bond issue approved by the voters of Willcox," said McCourt, adding that the city continues to pursue grants projects the people of the community want.
The gas fund received about 11-percent of its annual revenues and expended 12 percent of expenses.
"Gas (utility) revenues and expenses are seasonal, peaking in the winter months," McCourt explained.
Water utility revenues for the first quarter were at 28 percent of the budget, while operating expenses totaled about 20 percent, he said.
"Water revenues are also seasonal, with higher revenues in warmer months when usage is higher," said McCourt.
Sewer utility revenues total about 27 percent of the budget, while expenses totaled 19-percent without consideration of capital projects, he said.
The Refuse or Solid Waste Fund is about at break even, which is normal, explained McCourt.
"We continue to monitor all sources of income and expenses and will adjust as necessary to maintain a balanced budget," he said.
"We appreciate your input and welcome questions from the public."
Contact Finance Director Ruth Graham or City Manager Pat McCourt by mail at 101 S. Railroad Ave., Willcox, Ariz., 85643, or by telephone at (520) 384-4271, or via email at pmccourt@willcoxcity.org or rgraham@willcoxcity.org.
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