STURGIS - Financial numbers are painting bleak pictures throughout the nation. The picture in Sturgis, on the other hand, provides a lot of encouragement.
Sturgis City Manager David Boone said at this month's council meeting that general fund expenditures and total budget expenditures are being spent at levels far below what has been budgeted. He cited figures of 13 percent for general and 23 for total.
Boone explained several measures have helped improve cost efficiency. A purchasing policy instituted in April is perhaps one of the most important, he said.
"From April until the end of November, that program has saved us about $68,000," he said.
That policy features centralized purchasing guidelines. Boone said department heads are required to obtain bids for purchases, and they have been very cost-conscious.
Boone said the local purchase preference has saved the city $85,267 from April to November. He added the city wants to buy from Sturgis vendors when possible by ascertaining they're included in the competitive shopping process.
The city should consider two things when placing bids and making a final determination on the best bid price, according to Boone. He said purchases should be made outside the city if the cost savings on purchases less than $1,000 is greater than 10 percent. The other condition is if the savings on purchases of $1,000 or greater is more than 5 percent.
Boone cited the soccer field lighting bid, which originally received a solitary $358,000 bid.
Specifications were examined, and the desired amount of candlepower for the lights was specified. Boone said five bids came in at last week's reopening; the low bid was $239,030. That savings was $119,000.
Overall expenses have witnessed an across-the-board decrease, according to Boone. He added competitive bidding has accomplished this.
Other measures have helped improve efficiency. Boone said using direct deposit for biweekly payroll has saved paper, postage, and money. He added 2008 bond refinancing has saved $1.2 million in interest.
Boone estimates the total budget surplus should be around 15 percent by year's end, depending on revenues. He said that translates to several million dollars which can be used to go forward with next year and give flexibility.
The city's total budget for 2008 sets at $17.5 million, according to Boone's figures. He said the general fund expenditures portion of that is $6.8 million.
"General fund expenditures" refer to property taxes, sales tax, vendor fees, sponsorship fees, the three-B tax, and so forth. Boone said those are separated to let people know that is their tax money which is collected.
The remaining $10.7 million comes from user fees, Boone said. He includes sanitation, wastewater, the liquor store, and water in that classification.
Boone, as city manager, is responsible for preparing and submitting the annual budget. He directs department heads to prepare their budgets, and the finance office collects that information. Department heads then meet with Boone to analyze those budgets.
The goal is to gain maximum value for the taxpayers' dollar, Boone said. He seeks a balancing point with money available (resources and revenues) to provide services the public desires.
