Gas royalty budget discussed

By Matt Smith/msmith@trcle.com

August 18, 2008 12:26 pm

— The Cleburne City Council and city staff members discussed possible uses for gas royalty funds in the next fiscal year in a budget workshop Thursday. Fiscal 2008-09 begins Oct. 1.
Fund 21 contains royalties from gas wells and leases on city-owned land. Council members have, for the most part, used those funds toward one-time capital improvement projects.
The council estimated receipts of about $5 million for this year’s budget. The actual amount will be slightly more than $8 million.
After spending the money this year for various projects, the city will begin the fiscal year with a balance of $2,075,809 in the fund.
City Manager Chester Nolen and council members expect gas royalties to total about $6.5 million in the coming year.
Funds for several Fund 21 projects budgeted in the current year but not yet completed will transfer to Fund 53, the city’s general capital projects fund.
That fund was created for long-term projects that take more than a year to complete, or in other cases, projects the city is unable to begin within the fiscal year.
Fund 53 exists so council members do not have to vote again on projects already approved but not completed, said Greg Wilmore, Cleburne financial director.
Some of these projects include funding for downtown sidewalk repair and replacement, renovation of the Layland Museum and renovation of the animal shelter.
Council members discussed, but reached no final decision, on other uses for Fund 21 money.
About $2.9 million will probably be budgeted toward the Cleburne Civic Center-Performing Arts Center project. The joint project between the city and the Cleburne 4B Economic Development Corp. will renovate and expand the current civic center and add a performing arts center to the building. The city will fund renovation of the existing building and the cost of a new parking lot. 4B money will fund the rest.
Fort Worth-based Jacobs Carter Burgess is conducting a study on possible improvements and projects for Lake Pat Cleburne. Council members expressed enthusiasm for suggested improvements last month during a preliminary presentation by company representatives.
Councilman Kyle Boles suggested budgeting some Fund 21 money for lake projects and improvements.
Councilman Bob Force suggested putting a portion of the money, about $775,000 a year, into a trust fund to collect interest for future city needs.
Council members discussed the need for a new police and fire station as well as a library. The Cleburne Police Department and public library share the same building and both are running out of room.
The council budgeted Fund 21 money this year to purchase land for a fourth fire station to be located near Cleburne’s industrial area. Funding for architectural plans and construction costs remain to be budgeted. Costs of the station will probably be budgeted over the next couple of years, Mayor Ted Reynolds said.
The council will hold additional budget discussions during workshops before finalizing and voting on the proposed budget, he said.