Abbeville’s finances in good shape

Abbeville officials are breathing easy in regards to the city’s financial situation after the first six months of the year.
Sales tax revenues, water and sewer revenues and electric sales revenues are all ahead during the first six months of this year compared to the same time frame in 2013.
“That is very good news,” Abbeville Mayor Mark Piazza said. “Those are all ahead of schedule.”
Mild winters have had a negative effect on utility revenues in recent years, causing those balances to go below budget.
“Even with the mild temperatures that we had in the spring this year,” Piazza said, “we had such a harsh winter, with the ice storms, that our electrical revenues are up for the first six months.
“We had pretty big increases in February and March over the previous year.”
As for total payroll, the city is under budget for the first six months. The city set a number of $2,811,940 in the budget, but has come in with an actual payroll of $2,670,890. That is also $122,401 less than the city paid at the same time last year.
“Overall (payroll), we are under budget right about five percent for the first sixth months of the year,” Piazza said.
Regulation of overtime has a positive impact on the payroll budget.
“Overtime is in pretty good shape,” Piazza said. “Police overtime is slightly over budget at 4.89 percent ($7,328). That is because they have a shortage in personnel and the others have to work more, so they are going to accumulate more overtime. The fire department is just slightly over at 1.65 percent ($2,304). Those are not big issues because it is public safety.
“When you are looking at the limit in overtime, that is due to the result of good management by our police chief (Tony Hardy), fire chief (Jude Mire) and our supervisors in the different departments, running those departments efficiently.”
The mayor pointed out some cash balances from various funds that also serve as positives.
The city sales tax fund is currently $1,009,218.46, nearly double the $514,899.31 in the account in ‘11.
The utility system fund has grown from $384,036.07 in ‘11, to $915,092.90 now. The city has also recently set up a utility system reserve account, which currently holds $266,829.79.
“When you combine those two,” Piazza said, “the utility system fund has increased from $384,000 to more than $1 million.
“That is a good thing for the city because the utility revenues are what fund the general fund and public safety departments.”
A decision made more than two years ago has had a great impact on the increase of the utility fund.
“That increase is largely due to the savings from our new electrical contract with Constellation Energy compared to what we were paying before,” Piazza explained. “Not only did our customers save, but the city saved and is seeing increased fund balances.”
That new electrical contract went into effect at midnight on Jan. 1 of this year. The deal is for three years, with a city option for a fourth year.
The contract is paying off half way through year one.
“I think it is one of the better reports we have received in the last three or four years,” Piazza said. “It seemed like every summer we had to have a hiring freeze or cut the budget. I can tell you, that good report is almost totally the result of a reduced cost of electricity because of our new electrical contract. We are seeing the positive effects from the contract right now.
“It is one of the most significant impacts on the city that I have seen and that is thanks to the city council and the electrical committee for securing that contract.”