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Moreland Hills holds its own on budget
(by Sali McSherry - February 03, 2010)
Moreland Hills holds its own on budget
By SALI McSHERRY
Moreland Hills revenues and expenditures will be about even this year, according to projections by cvillage Treasurer Prashant Shah.
With an annual budget of about $5 million, the village has extremely low debt service, Mr. Shah said. It has enough money in its coffers to complete the service department renovations and additions this year, continue with its annual road program and give a 2.5 percent wage increase to its employees, he said.
The cash balance remains steady, he said, with general-fund balances of $5.9 million in 2008, $5.75 million in 2009 and $5.8 million in 2010.
Income-tax revenue declined by about 1.2 percent in 2009, Mr. Shah said. Most of the village's revenue, about $3 million, is collected through income tax. Residents who work outside of the village pay 1 percent to Moreland Hills. In some communities, like Pepper Pike, residents who work outside of the city receive a 50 percent credit paid to other communities.
Real-estate-tax revenue, which generated about $900,000 last year, dropped by 0.5 percent in 2009. In 2010, it is estimated to drop 5 percent due to a 5 percent property devaluation made by the Cuyahoga County Auditor's Office.
A 3-mill safety levy, which pays a portion of the police department operations and the contract the village has for Chagrin Falls fire protection and emergency medical services, generates about $700,000 annually.
The village will spend about $1 million from its general fund to pay the cost for the police department and contracted services which will total about $1.7 million this year, he said. Last year, the village transferred $465,000 to the levy fund, he said.
"We're still being very conservative" about our budgeting, Mayor Susan C. Renda said. "We've tried to hold the budget steady," she said.
She asked each department to cut $100,000 from its budget. For instance, the police department deferred the purchase of a cruiser at a cost of about $50,000, a mobile data terminal and non-essential training. Equipment that is needed, like radios, will be phased in, she said.
The service department put on hold the purchase of a $40,000 camera that is used to examine breaks in storm sewers, tools and non-essential training, she said.
Two major projects are expected to be completed this year. The village started setting aside money for the service center in 2006, beginning with $150,000 that year and in 2007 and $500,000 in 2009, Mr. Shah said. The total cost of the service renovations and additions is about $3 million, with $2.2 million coming out of the 2010 budget.
Moreland Hills will spend about $2.5 million to complete the conversion of three treatment plants into pump stations this year, he said. Last year it paid $620,000 toward the project, Mr. Shah said.
Moreland Hills budgets about $25,000 annually for inheritance tax revenue, Mr. Shah said. In 2008, the village received $550,000 and in 2009, it received $230,000.
The village will spend about $560,000 for road and storm-sewer repairs and maintenance, he said.
The village has very little debt, he said. Right now, there's about $730,000 in remaining debt and the village pays about $160,000 in debt service each year, Mr. Shah said. Moreland Hills has not issued any debt since 1998, he said.
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