Thursday, May 23, 2013
Covering Dallas, Monmouth, Independence, Falls City and surrounding areas since 1868
Minet FY 2012-13 Budget
June 26, 2012
INDEPENDENCE -- The Monmouth-Independence Network (MINET) Board approved its 2012-13 budget June 19. However, it has yet to determine how to fill a more than half-million-dollar gap.
Board President David Clyne said MINET operations and the first of two debt service payments will be adequately covered with expected revenue.
But MINET may fall short at the end of the next fiscal year, with particular concern for the second debt service payment due in June 2013.
It has been proposed the $505,000 gap would be filled with a loan from the cities of Monmouth and Independence. Monmouth even had money set aside in its budget for that eventuality.
Now, Interim General Manager Ross Schultz believes MINET may be able to borrow the money from other sources.
"It's anticipated, if our revenue projections play out, that we will be able to secure additional funding from the market to finance the gap," he said last week.
Schultz said if strong sales continue as they have since he took over as manager in March, MINET may be in a better position. In his proposed budget, Schultz estimated a smaller shortfall -- about $380,000 to $400,000 -- but the board requested he use more conservative revenue estimates.
Schultz said a financing plan hasn't been developed yet, as he would like to see how sales continue throughout the rest of this year.
"We will know a lot more at the end of the year," he said, noting revenue may be stronger than expected. "It's anticipated it (the shortfall) won't even be that high. That's our best hope."
Another concern is the budget's razor-thin contingency of $15,000. Schultz said the figure should be much higher.
"I think it's recognizing the fact that we need some contingency and that's all it's doing," Schultz said.
He noted MINET's equipment is under service contracts to cover major failures, so the contingency fund would likely not be needed for that.
In other business, the board:
* Approved a contract with Schultz to serve as MINET's manager. Schultz will be paid an hourly rate of $75, inclusive of all benefits. He works part time in the position.
Schultz has 35 years experience in public administration, including 18 years at the Port of Portland and eight years as the city manager of Sherwood.
While it's anticipated Schultz will serve as general manager for the foreseeable future, there was no discussion of how long.
"I'm flexible and they (the board) appear to be flexible as long as the work is getting done and it's going in the direction they want to go," Schultz said.
* Approved a 1.5 percent cost-of-living increase for employees in the 2012-13.