The Dolores Town Board will approve the 2015 budget this month.
While there are no big surprises, treasurer Lana Hancock said expenditures are beginning to outpace revenues collected from utility fees, grants, property taxes and sales taxes.
"Our revenues are staying the same, but our costs keep going up, so we need to balance it back out," Hancock said.
The town budget is organized into four funds. Two of them, water and sewer, are enterprise funds that must pay for themselves through fees.
The general fund and street fund are financed through sales taxes, property taxes, state taxes, and grant funding.
Sewer fund
The main adjustment this budget season will be an increase in sewer rates effective Jan. 1. The increase won't be seen until the February bill, and the exact amount has not been decided.
The town is conducting an audit of the increasing maintenance needs of the sewer plant to determine how much the rates will need to increase. A decision will be made at the Dec. 8 town board meeting.
"The sewer budget must be self-sustaining," Hancock said. "It's better to raise the rates a little at a time to keep pace with rising costs rather than a big increase down the road."
Currently, the sewer rate is $25.75 per month for in-town residents and $44.36 per month for out-of-town residents.
The first lagoon at the sewer plant is due for a major project to remove 20 years of accumulated sludge. The job is expected to cost more than $100,000.
"We will be looking for grants to help pay for it, but we need to begin building up a reserve fund in 2015 for our eventual match down the road; otherwise, we will not be considered for grant funding," Hancock said.
In 2015, the sewer plant is not expected to pay for itself, collecting an estimated $188,330 in fees, but costing $197,175 to operate, a net loss of $8,845. Last year, the plant collected $267,330 in fees and grants, with total expenses coming in at $278,108, a net loss of $10,778.
"We've dipped into the reserves to cover the difference," Hancock said.
Street fund
Upkeep costs for streets are slightly out pacing revenues. For 2015, estimated collected revenues are $264,459, but total expenses are predicted at $266,574.
"This year, we are starting a reserve fund, starting with $15,000, for future street projects," Hancock said. "Central Avenue is needing repairs, and we need to build up funds year to year to match grants that will help pay for an eventual asphalt overlay."
General fund
Inflation has also impacted the general fund, which pays staff salaries, law enforcement, park maintenance, insurance, attorney time, town buildings, equipment, vehicles utilities, plus more.
Estimated revenues for the 2015 general fund is $335,110, but total expenses are estimated at $452,256, a loss of $117,135. A proposed $50,000 renovation of the clubhouse at Joe Rowell Park explains part of the large difference.
Renovating the clubhouse bathrooms and concessionaire at the ball fields is needed, however if estimates come in too high the project will be postponed.
Hancock's willingness to take on town manager duties as well as treasurer duties will save the town approximately $80,000 in 2015. Also the town is considering contracting out park mowing and bathroom cleaning to try and save costs.
Reserve funds in each of the four budget funds help absorb losses, Hancock said.
She said it is a common misconception that property taxes fund a lot of the town budget.
"The 10.0 mills provide just a sliver of our overall budget," she said. "There will come a time when we will need to ask the voters for a mill increase to keep up with rising costs of the services we provide."
