Lula budget highlights
• $1,036,192 general fund spending plan
• Revenues increase by 5.4 percent
• Sewer and water revenues top $788,000
• Sewer and water revenues exceed expenses by more than $76,000
• No property taxes
Lula officials took a first look Monday at a balanced fiscal 2018 general fund budget that showed revenues eclipsing the $1 million mark for the first time.
The $1,036,192 in projected revenues surpasses by 5.4 percent current fiscal year revenues of $983,455.
City Manager Dennis Bergin presented the numbers to city council members who listened and did very little talking during a special called work session.
Bergin said there would be no celebrating going over the $1 million mark in revenues.
“The only thing we celebrate is our conservative approach,” Bergin said. “We spend one dollar for each dollar we get.”
Bergin also projected that water and sewer revenues would would spike almost 24 percent to $788,200. The city currently draws $636,700 in revenues from its utilities.
Water and sewer revenues are expected to exceed expenses by $76,536.
The surplus utility funds will likely go toward capital needs, Bergin said.
“I’d like to see us accelerate other projects,” Bergin said following the meeting. “We have sewer lines that have to be replaced. It’s going to cost about $51,000 to make improvements to a pump station. Nobody likes to hear numbers like that.”
Lula relies on sales tax revenues and fees to pay for services and run the government. The city does not impose a property tax.
Driving utility revenues is a 400 percent increase in water taps expected to bring $125,000 to the city’s coffers. Bergin said the “conservative” projections are based on new homes being developed on Magnolia Station and Waterford Glen.
Bergin said Lula has about $1.8 million in reserves available in a pinch.
Another budget work session is scheduled for June 12.