Alexandria is considering a budget amendment to reflect its increase in revenues and appropriate the funds for the new city building and community center campus project and other projects.
The city heard a first reading Thursday, April 18, to amend the fiscal year 2023/2024 budget after an unexpected net revenue increase of $487,749. The budget amendment will help Alexandria accelerate a few acquisitions they are eyeing in the fiscal year 2024/2025, said Alexandria City Administrator David Plummer. One of those items is a new F550 truck for the public works department with an estimated price tag of $100,000-$120,000 to replace the current 20-year-old model.
The city’s gross revenue increased from $6,925,750 to $8,218,754, a difference of $1,293,004. This is due to greater property tax income than projected, greater bank interest than projected and making $35,000 from selling a skid steer.
The city’s expenditures also increased from $6,925,750 to $7,731,005, a difference of $805,255.
“We have to thank our staff, who have made some very good decisions as it pertains to our banking and the ability to basically accrue interest and receive interest,” said Alexandria City Council Member and Finance Committee Chair Stacey Graus.
Notable projects/adjustments are:
- Administration: Blue Roo Fence, tablet purchases, sanitation expenses, zoning digitizing.
- Public works: Full-time and part-time salary adjustments, worker’s compensation, health stipends, and fuel—reduced health insurance for new employees caused an increase in health expense, acquisition of a Ford F550 truck, skid steer.
- Parks and recreation: Parks capital improvements increased to cover the cost of the new shelter and playground equipment already authorized by the council.
- Police: Payouts for termination and retirement, addition of new officers and increased health/pension costs, and acquisition of a third vehicle this year due to a crash.
- Other city expenses: The estimated cost of the city campus design was initially left off of the budget due to unknown costs.
- Public works, community center, planning, and zoning: lowered by $23,850 collectively.
“Other city expenses increased by $525,000,” Graus said. “Almost all of that is soft costs related to the new city complex. It is money we knew we were going to have to spend. We didn’t know exactly when we were going to spend it, but we knew we were going to spend it, and it’s actually happening in this fiscal year, which is good because we’re moving more quickly, and that should be exciting.”
Even with the added expenditures, Graus said the additional $487,749 puts the city in an excellent position for the next upcoming fiscal year.
Bid discussion to purchase the F550
Alexandria Public Works Superintendent Doug DeJaco asked the council Thursday to purchase the F550 cab and chassis, estimated to cost $70,000, instead of waiting until the second ordinance reading on May 2.
The cost had already been included in the budget amendment, and the city had put it out for bid and received one offer. This prompted the council to discuss whether they could seek a second bid locally from Mike Castrucci Ford of Alexandria.
Though the city has received a bid from Fuller Ford in Cincinnati, Alexandria Council Member Joe Anderson asked the council to consider shopping locally.
“Was there any attempt to touch base with Castrucci Ford in our town?” Anderson said. “Was there a reason behind that we couldn’t even call them on the phone? I mean, they’re in our town.”
Graus explained that there are statutes the city must follow when sending out a request for a proposal.
“We can’t just turn around and call 10 dealerships and say, ‘Hey, can you just give me your price?’ This has to be done—it’s a bid process,” he said. “And that’s what we have to do. We have to follow that, or we won’t be able to purchase it.”
Anderson said Ford has been in the city for many years and has paid a lot of taxes, which should be considered, though other council members argued that they had the opportunity when the bid was sent out.
According to Alexandria City Attorney Mike Duncan, the city could informally inquire with Ford in Alexandria to see if they received a reasonable bid. Then, if they find a better deal, they could rebid the project.
“Don’t you people think, everybody sitting here that we ought to give them a chance?” Anderson said. “If they don’t want to bid on it, ok. If the price comes in higher, ok. If they want to bid under, great. But shouldn’t we give them a chance?”
After hesitation by the council and some members informally voting that they did not want to approach Ford in Alexandria, Mayor Andy Schabell said they would do it this one time.
“Let’s do it once,” Schabell said. “We’re not going to make a habit of it. Let’s see what happens, and that’s going to be it. If they say they’re not interested, they’re not saving us money. We’re not doing this again.”
