The approaching end of the IRS repayment tax was a topic of discussion Thursday night for the Blytheville City Council's finance committee, and chair Tommy Abbott presented numbers showing how much will have been paid by November. According to Abbott's projections, by the end of November, the city will have paid $3,659,566.54 to the IRS. This will result in a total (projected) overpayment of $199,587.56, which the city will receive back, subject to IRS approval.
"The tax goes off at the end of September for the IRS payment," he said, "and hopefully in the next few weeks we'll be able to get a payoff number from the IRS. In October the tax rate will go back to 9.75 percent. I just want everyone to know and appreciate that we're trying to stay on top of that and keep them informed."
The committee also discussed the fact that for the period of January-August, ten of the city's 24 departments were over budget. Of note was the city parks and pool department, which budgeted $185,805 for that period, but actually spent $341,997. This resulted in that department's request for funding to purchase approximately $33,000 worth of equipment, including a utility tractor and a grooming mower, being denied.
Abbott said that most of the budgets haven't had any spending in some line items, and he feels that adjustments could be made to level out some of the overages, but that spending would have to be more controlled. He and other committee members agreed to set up meetings with the heads of each over-budget department to discuss whether or not the spending is a trend or something that will slow down as the year progresses.
"The general fund is still close," he said, "so we really need to stay on emergency spending only for it, and the city still owes $500,000 to the infrastructure fund."
Approval was granted to fund a greens mower for Thunder Bayou at $1,230, and repairs to the awning at the Delta Gateway Museum by Hinson Signs for $7,118. The funding used for the awning repair is dedicated for use by the museum and does not affect the city's general fund. Requests for additional equipment by Thunder Bayou and by the wastewater department for a new vehicle were denied.
sharris@blythevillecourier.com