2025 ‘critical’ for Arnold’s finances as council approves budget with no tax increase
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After a shaky start to the year, Arnold’s city manager is hopeful for a better financial picture in 2025.
“Next year is going to be critical to see where we are financially,” Manager Mario Bellavia said. “It was precarious early in the year. We can make next year a really good year.”
Council approved the city’s $4.56 million 2025 budget that keeps property taxes at 43.5 mills.
The tax rate hasn’t changed since 2013.
Bellavia has said the city’s former interim management, which handled city finances until he was rehired this year, miscalculated the city’s budget for 2024. The budget, he said, overestimated the city’s revenue while underestimating expenses.
Three things Bellavia said have been critical to the city balancing its 2025 budget are controlling police overtime, collecting delinquent garbage and sewage accounts, and improving the city’s retirement fund.
Arnold police officers agreed in their contract to work 12-hour shifts, which Mayor Shannon Santucci said helped to keep overtime down.
“We have to continue to monitor the police overtime and make sure it fits into the agreements that we have put in place and the schedule that we have put in place,” Bellavia said.
On the revenue side, just as important is the city collecting on delinquent sewage and garbage accounts, he said.
The city has been shutting off water and sewage services and stopping garbage collection for those who don’t pay, Santucci said.
The city expects to collect more in sewage and garbage fees, about $2.1 million, than it does in tax revenue, about $1.9 million, according to the 2025 budget.
Sanitation services are the biggest expense, about $1.2 million; followed by employee benefits, about $861,000; and police, about $776,000.
“We need to continue a strong showing on delinquencies and keeping the revenues to where they are,” Bellavia said. “We have the potential next year now that we’ve put in place a process for delinquencies with 10-day notices and shutoffs 10 days later to increase revenue in that area. That could be a big win next year. We’ll be monitoring that every month.”
The city’s retirement fund is now fully funded, after being considered distressed four years ago, Bellavia said. The city’s contribution will drop by $250,000 next year, which he called a “huge win to the city.”
“It pretty much saved the finances and enabled the city to balance the budget,” he said. “We’re here now. We have to keep that stable (and) keep going with what we’re doing.”