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For months, Arma City Administrator Tim Schook has been preaching the importance of raising the city's sewer rates as a way of increasing revenue.
On Thursday, during a meeting with The Morning Sun to discuss the city's budget, Schook laid out, in dollar figures, the importance of the matter.
According to city documents, Arma's sewer utility expenditures for 2009 are projected to be slightly more than $191,000. Income from sewer, however, is projected to be $145,000, a negative difference of $46,000.
Arma residents pay at flat monthly fee of $15 for sewer service. Schook has asked the city council to approve adding a $1.50 charge per 1,000 gallons of water use per month. If that measure is approved — a vote is expected in February — Schook said the city may "break even" in the sewer department.
The largest expenditure in the sewer department is $63,000 for personal services, which includes mostly labor costs. A little more than $59,000 is allotted for payment on the city's lagoon expansion project.
Schook said he addressed the sewer issue with the council shortly after he took the administrator job in May 2008. At the time, the council wasn't willing to raise rates, Schook said. For many years, according to multiple council members, the city's reserve fund was used to make up for sewer revenue shortfalls.
But Schook did not let the issue die, continuing to raise the matter until the council agreed to consider raising rates.
"They have to raise them," Schook said. "They've waited too long, already."
Even if the proposed increase is approved, Schook said he also may propose raising sewer rates by 2.5 percent annually to keep up with costs.
But the sewer department isn't the only matter keeping Schook up at night, he said. Revenue from water is expected to fall nearly $30,000 short of expenditures in 2009. According to city documents, water expenditures are expected to be around $243,000, while income is projected at $214,000. Although he hasn't discussed specifics of a future proposal, Schook said he'll likely suggest that the council approve raising water rates this year.
At a time when economic times are tough and the city's budget is already "bare bones," Schook said getting sewer and water rates where they "need to be," will make him feel better about the city's financial situation.
"I'll definitely sleep better at night," he said.
Council members have praised Schook for being diligent in his analysis of the city's budget. And while he doesn't always bring the council good news, Schook tells them what they need to know, according to Councilman Ron McKee.
"We bring on a city administrator and he starts pointing out things and mistakes we've made," McKee said. "When you're just a group of guys trying to make decisions, you don't know all these things."
Councilman Jeff Locke also praised Schook for highlighting the urgency of adding revenue.
"Tim has been invaluable in this entire process," Locke said. "He tells us things that we don't always like to hear, but they are things, as a council, that we need to know. We need to raise certain rates, which no one likes to do, but we don't really have a choice."
Schook has told council members that he wasn't hired to tell them only what they want to hear. He's also told them he "doesn't want to play for a losing team," emphasizing that he expects the council to make decisions, especially the tough ones, in order to ensue the city can continue to operate effectively.
As for the city's general fund, Schook is expecting to finish with about $11,000 in the bank. Expenditures from the general fund are projected at approximately $400,000, while income is projected at $410,900.
Schook said he has cut unnecessary spending from the budget, saying "If we don't need it, we're not buying it."
For months, Arma City Administrator Tim Schook has been preaching the importance of raising the city's sewer rates as a way of increasing revenue.
On Thursday, during a meeting with The Morning Sun to discuss the city's budget, Schook laid out, in dollar figures, the importance of the matter.
According to city documents, Arma's sewer utility expenditures for 2009 are projected to be slightly more than $191,000. Income from sewer, however, is projected to be $145,000, a negative difference of $46,000.
Arma residents pay at flat monthly fee of $15 for sewer service. Schook has asked the city council to approve adding a $1.50 charge per 1,000 gallons of water use per month. If that measure is approved — a vote is expected in February — Schook said the city may "break even" in the sewer department.
The largest expenditure in the sewer department is $63,000 for personal services, which includes mostly labor costs. A little more than $59,000 is allotted for payment on the city's lagoon expansion project.
Schook said he addressed the sewer issue with the council shortly after he took the administrator job in May 2008. At the time, the council wasn't willing to raise rates, Schook said. For many years, according to multiple council members, the city's reserve fund was used to make up for sewer revenue shortfalls.
But Schook did not let the issue die, continuing to raise the matter until the council agreed to consider raising rates.
"They have to raise them," Schook said. "They've waited too long, already."
Even if the proposed increase is approved, Schook said he also may propose raising sewer rates by 2.5 percent annually to keep up with costs.
But the sewer department isn't the only matter keeping Schook up at night, he said. Revenue from water is expected to fall nearly $30,000 short of expenditures in 2009. According to city documents, water expenditures are expected to be around $243,000, while income is projected at $214,000. Although he hasn't discussed specifics of a future proposal, Schook said he'll likely suggest that the council approve raising water rates this year.
At a time when economic times are tough and the city's budget is already "bare bones," Schook said getting sewer and water rates where they "need to be," will make him feel better about the city's financial situation.
"I'll definitely sleep better at night," he said.
Council members have praised Schook for being diligent in his analysis of the city's budget. And while he doesn't always bring the council good news, Schook tells them what they need to know, according to Councilman Ron McKee.
"We bring on a city administrator and he starts pointing out things and mistakes we've made," McKee said. "When you're just a group of guys trying to make decisions, you don't know all these things."
Councilman Jeff Locke also praised Schook for highlighting the urgency of adding revenue.
"Tim has been invaluable in this entire process," Locke said. "He tells us things that we don't always like to hear, but they are things, as a council, that we need to know. We need to raise certain rates, which no one likes to do, but we don't really have a choice."
Schook has told council members that he wasn't hired to tell them only what they want to hear. He's also told them he "doesn't want to play for a losing team," emphasizing that he expects the council to make decisions, especially the tough ones, in order to ensue the city can continue to operate effectively.
As for the city's general fund, Schook is expecting to finish with about $11,000 in the bank. Expenditures from the general fund are projected at approximately $400,000, while income is projected at $410,900.
Schook said he has cut unnecessary spending from the budget, saying "If we don't need it, we're not buying it."
