The Ada City Council signed off Monday on the city’s $97.73 million budget for fiscal year 2019-20.
Voting 5-0, the council approved a resolution adopting the new budget, which is higher than the city’s $94.09 million budget for fiscal year 2018-19. The increase is due to two factors: a $4 million loan to drill two new water wells and the debt payments on the loan, and an estimated price tag of $2.4 million for the next phase of upgrades to the city’s sewer plant.
The Ada News reported earlier this month that the new budget includes funding for the following major projects:
• Drilling the new water wells. Estimated cost $7.95 million.
• Phase five of the sewer plant upgrade. Estimated cost: $2.50 million.
• Street projects. Estimated cost: $2.60 million.
• Upgrades to Main Street, renovations at City Hall, the new Irving Community Center and the second phase of the Ada Sports Complex — all financed with part of the proceeds from the Penny for Our City sales tax. Estimated cost: $8.67 million.
The new budget also includes a $75,000 contribution to Call-A-Ride, a Pontotoc County-run public transportation program. The program receives funding from several different sources, including a contract with the city and a portion of the county’s volunteer fire department tax.
The city builds its annual budget using funds from a variety of sources, including sales tax, utility fees and court fines. Sales tax revenues account for 64 percent of the total dollars that pay for services provided through the city’s general fund.
Sales tax collections have increased by 2.91 percent so far this year compared to FY 2017-18, finance director Donna Doolen said earlier this month. She noted that the current fiscal year will not end until June 30.
Doolen said sales tax collections for FY 2019-20 could reach $7.21 million — the same figure that city officials are expecting for the rest of the current fiscal year.
In other business, the council approved the Ada Public Works Authority’s $32.26 million budget for FY 2019-20.