Results of the 2010 Census and rising gas prices may force the city of Blytheville to make some difficult decisions this year.
On Monday, Councilwoman Shirley Overman told her Finance and Purchasing Committee that the city didn't anticipate the high gas prices when beginning the budget process last September and some departments are on pace to go over budget on the line item.
"It's evident we're going to have to go back and do some work on the budget," Overman said. "The gasoline prices have taken a toll on the city budget."
According to figures released at the meeting, Blytheville is expected to lose $167,076 in turnback funds this year because of the loss of 2,652 residents in the 2010 Census. Blytheville's population dropped from 18,271 to 15,470.
The estimated state turnback for streets is $47.50, while the turnback for general purposes is $15.50. Officials arrived at the estimated turnback loss figure by multiplying 63 and 2,652.
Overman said the city budgeted with the only numbers it had available at the time, and now it must examine the budget again and speak with department heads.
"We're going to have to see where they can cut back, and where we see some departments can cut because we're not going to have the money. It's not going to be here," Overman said. "So we'll have to find out where we can cut. We don't know if it's going to be through fewer employees, but we've got to find at least $167,076 plus the money that we're spending on gasoline that we had not anticipated."
Perhaps the silver lining is the city's new administration finding additional revenue in the water department and Blytheville anticipates saving on jail fees with the new two-year agreement with the county. Also, the final 2011 budget projected a $437,185 surplus, according to Overman, though that figure drops to $270,109 with the turnback loss.
"There may be some offsets," Councilman Monte Hodges said.
By fixing a broken meter, the city discovered $20,000 of water revenue in less than a month.
Hodges noted the finding was not even in the peak season.
"We will probably see some substantial increases in revenue on that end," he said.
Sanders said it is uncertain how much more cash water department moves will add to the city coffers.
"We're still waiting to see what the revenues will be with the work we've done at the water company," the mayor said, though pointing out the revenue is not from increasing residents' water bills but finding what has slipped through the cracks.
Sanders added the city is looking at ways to be cost-conscious and finding revenue in the process.
"All we're doing is going back and, for lack of a better word, auditing our system and seeing where our shortfalls have been," he said.
One way the city is auditing itself is studying the fuel consumption figures, which are logged at Public Works.
Sanders said he is staying in touch with Public Works director Rick Mosley and Blytheville Police Chief Ross Thompson on the departments' fuel consumption.
According to Sanders' figures, the two departments account for all but 18 percent of the city's unleaded usage.
He noted administration uses 1 percent; the police department, 34 percent; fire department, 3 percent; code enforcement, 1 percent; sanitation, 14 percent; street department, 33 percent; sign and signal, 1 percent; and Waterworks, 13 percent.
As for on-road diesel, parks uses 1 percent; fire department, 19 percent; sanitation, 51 percent; street department, 26 percent; and sign and signals, 3 percent.
Meanwhile, Hodges brought up an issue he tackled when first arriving on the Council: city cell phones.
He reminded the committee that at one time, the city was paying for phones no longer in use because they were issued to former city employees.
"I know it may be a small line item, but it added up," Hodges said, adding there is a need to revisit the list of city cell phones and their bills.
He said if the city is tightening its budget, employees may need to provide their own cell phones.
"Every little penny helps," Hodges said.
Also Monday, responding to a request from Hodges, Overman provided revenue figures for Thunder Bayou Golf Links.
She said March revenue was double what it was March 2010. The golf course brought in $24,769 last month, compared to $12,026 in March 2010 (up $12,743). Overall the golf course has received $43,608 in revenue at this point, compared to $35,140 during the same time last year.
Overman added the golf course's new strategy, which includes aggressive marketing, appears to be working.
mbrasfield@blythevillecourier.com