Inflation impacts proposed City budget
Navasota city council members wrapped up their June 28 meeting with the first of several budget workshops in preparation for approval of the 2021-2022 budget. Present and participating via Zoom was council member Pattie Pederson.
Among the items listed on Monday’s workshop agenda were lease-purchase of heavy equipment, a cost-of-living adjustment for staff, and a 5.63% increase in utility rates prompted by an inflation factor of more than 5% in the Consumer Price Index (CPI) and the Municipal Cost Index (MCI).
The CPI measures the weighted average of prices of a market basket of consumer goods such as transportation, food and medical care. The MCI shows effects of inflation on the cost of providing city services.
City Manager Brad Stafford opened the workshop saying the proposed budget has a deficit of $152,272 which will be paired down by the next meeting.
Utilities feel heat of inflation
Responding to a citizen’s request during public comments to consider utilizing sales tax rather than increasing utility rates, Stafford immediately moved to address utilities.
He said, “Each year we look at our utilities, and we look at what we need to do to keep our utilities operating at good, strong level. We always evaluate the CPI as well as the MCI.”
According to Stafford, the proposed 5.63% increase was based on April MCI figures of 6.99% increase and CPI 4.27% increase. Stafford advised that by May, MCI had risen to 8.27% and CPI 5%. He pointed out the continuing rise in the cost of pipe, electricity, chemicals, and gasoline.
Stafford said, “But at the same time, our utility system is extremely old and is becoming taxed because of some of the growth, and we do have a need for improving multiple lines, utility mains, and we have the need to keep up our pumps, monitors, our tanks. We’re just trying to keep up with the costs and that’s why we’re proposing those things.”
He added, “Generally, property tax and sales tax just about cover our police and fire budget.”
Because of an increase in Capital Improvement Plan costs, residents will see a $1 per month increase to cover the CIP payment.
Councilman Bernie Gessner said the cost of providing water is going to increase over the years, a situation not unique to Navasota.
Referring to large cost increases in Houston, he said, “We have only so much water and it’s going to be more difficult and more expensive to process it and find it.”
Heavy equipment needs
Among heavy equipment needs were a trailer jet rig, trailer mower, backhoe, streetsweeper and a bulldozer.
Stafford said, “We’re hoping the bull dozer will be paid for out of American Rescue Funds.”
NPD, NFD and airport
Stafford said Navasota Police Department needs to replace some patrol vehicles and the Navasota Fire Department wants to hire an additional employee and replace one of the older fire trucks.
At the Navasota Municipal Airport, the budget includes road and gate improvements requested by pilots as well as purchase of an AWOS, an Automated Weather Observation System.
Records preservation
City Secretary Susie Homeyer budgeted $24,000 to scan and preserve old City Council Minutes books, one-third each year till complete. Once scanned, the records will be available for search online.
Other budget items
Funds are included for animal shelter needs, new computers and Kid Zone furniture at the library, repairs at the Navasota Center, publication of a second Navasota Magazine, a 3% cost of living adjustment for city employees, and an increase in the donation for Keep Navasota Beautiful expenses.
Stafford closed by saying, “What we’ve got to deal with from Covid is inflation and finding our parts, supplies. We’re going to have a hard time replacing vehicles, and the cost of our CIP project is increasing tremendously and will cut down on the amount of work we’ll be able to do.”