LOWELL — The 2010 budget for the city of Lowell is conservative but includes a cost of living wage increase for many employees, two police vehicles and several road projects.
The amended 2009 general fund revenue budget is $6.82 million. The projected 2010 general fund revenue budget is $6.85 million, which includes an anticipated carryover of $1 million from 2009.
Mary Mason, finance director, said revenue and expenses are about the same in the 2009 and 2010 budgets.
“We took a conservative approach in the 2010 budget,” Mason said.
Mason, when preparing the budget, reduced the anticipated city and county sales tax revenue for 2010. “We hope sales tax revenue will increase next year. If it does we are better off. If it doesn’t we will still be fine,” Mason said.
The 2010 budgets projects a carryover in to 2011 of $797,066.
The largest expenditures in the budget are in the street department. Officials plan to rebuild Lincoln Street at a cost of $713,401; improve Robinson Street, from U.S. 71B to Ash Street for $290,000; extended Dixieland Road for $1.5 million; and repair the Park Central drainage system for $1.2 million.
Park Central is a commercially zoned, mostly undeveloped, section of land on U.S. 71B south of Pleasant Grove Road. World Gym sits on the northern end of the property.
The Park Central drainage system was installed incorrectly by Coast Construction Co., in 2005, said Mayor Perry Long. Gravel is filling the PVC pipe in places and the pipe is becoming egg-shaped rather than round, Long said.
The problem was discovered by city employees before the performance bond expired. Employers Mutual Casualty has the project bonded for $990,000. Long has asked the bonding company pay the entire cost of repairs and street work associated with it.
“We are negotiating with the casualty company. If the bonding company agrees for the entire project the city isn’t out any money,” Long said.
“If they only pay $990,000 our cost will still be less than if we had to pay for the entire repair,” he said.
City employees making less than $45,000 will receive a 2.5 percent pay increase in the coming year. In 2007, 2008 and 2009, all city employees received a 3 percent pay raise.
“The department heads and the council agreed a 2.5 percent raise should be given next year to employees making less that $45,000,” Long said.
The police department is schedule to spend $41,286 on two Dodge Chargers next year. The department didn’t purchase any cars last year.
“The city is on the right track, our employees and department heads are working well together for the benefit of the city. In my state of the city address during the Jan. 19 council meeting I intend to discuss where we’ve come from and where we are headed,” Long said.
Infotext
By the Numbers
Lowell 2010 Budget
$6,855,724 Total projected funds available
$3,918,658 Total department expenses
$2,937,066 Total funds available after expenses
$2,140,000 Total transfers to other accounts
$797,066 Estimated balance general fund checking account Dec. 31, 2010
Source: City of Lowell