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Town manager line item dropped from $2.79M budget

By Staff | Apr 10, 2009

The Corporation of Shepherdstown Town Council has passed a $2.79 million annual general fund budget for the upcoming 2009-10 fiscal year, which begins July 1.

Cut from the budget is a $35,000 salary line item that has been held in reserve in previous years’ budgets for a proposed town manager. Though never hired by the Town Council, initial projections had called for a starting town manager salary/benefit package of $88,000, a large portion of which would have been funded by the town’s Water & Sanitary Board.

The 2009-10 budget was submitted to the State Auditor last week and was approved by the Council at its regular March meeting.

The overall budget is down $1.026 million from the current 2008-09 year. The beginning cash balance is down $427,000, mostly from capital funds being used for the Streetscape Improvement Project.

Revenue projections are down $600,000, predominantly from $561,000 in grant revenues from 2008-09 that will not be included in the coming year’s budget, Accounting Clerk Pat Dowell reported. The balance of the revenue drop is accounted for in lower projected video lottery and tax revenues, she said. Dowell notes that the total property tax revenue for next year is increased only $3,300. Net property tax revenue for this year was $134,500 while in the coming year it is expected to be $137,800.

Capital expenditures for 2009-10 are projected to be $924,500 less than the current year.

This figure, Dowell says, represents the following:

– $1.274 million less due to projects completed (predominantly infrastructure and streetscape expenditures that won’t be made in 2009-10)

– And an addition of $350,000 in new capital expenditures

Operating expenses are expected to go down in the coming year by $101,000 because of roughly $56,000 in 2008-09 grants that will not be in the 2009-10 budget.

The deletion of the $35,000 salary line item for the proposed town manager salary, reduced legal fees and frugal budgeting account for the balance of lowered operating expenses, Dowell reported.