City of Abbotsford in good spot financially heading into 2024

The city of Abbotsford went through its preliminary budget at its biweekly meeting on October 18, noting that the city is expecting financial growth in 2024.

The raise in revenues for the city in 2024 is not related to an increase in taxes. The city will keep the tax levy the same as it was in 2023 but will receive a 1.32% bump in revenue from property taxes thanks to new construction within city limits.

As seen in other municipalities, the city will be receiving a 20% increase in its state shared revenue for 2024. The increase will add $106,921.56 more than the city saw from state aid in 2023. The city will also see significant increases in its transportation aids and cell tower lease income budget lines of $38,068.17 and $20,213.88, respectively. The increased aid and revenue allows the city to budget for a 10% increase to their revenue of the general fund portion of the budget.

City Administrator Josh Soyk noted that the current budget for 2023 is $70,713 over budget but he said the expected revenue that is yet to come should more than erase the deficit.

Along with the general fund, the Abbotsford Public Library saw a 1.42% increase to its budget for 2024. The Abbotsford library, along with other libraries in Clark County, will be waiting a decision to be made at the Clark County board meeting on November 9. The decision is whether or not to give the libraries funding for 85% of their budgets in 2024.

Currently, the library receives funding for 70% of its budget.

The water department is budgeting for a 20.15% increase in 2024 and the sewer department is expected to see a 1.35% raise in its budget next year. The TIF districts are generating revenue and more is on the way with impending Abbyland projects helping to keep the districts successful and profitable. Preliminary numbers for the districts showed a 5.97% increase for 2024. Public works will be receiving an 11.5% increase in its budget in part due to the increase in transportation aids allotted by the state. The transportation aid income is to be spent on the Fifth Street reconstruction project in 2024.

The 2024 water budget accounts for approximately $1 million in new wells that are to be drilled next year.

To add to the city’s interest income, the council discussed the option of moving money from the water savings account to a CD or money market account. The council approved the motion which would add approximately $65,000 in interest revenue to the 2024 budget.

Dan Borchardt from MSA attended the meeting and gave the council some updates on the projects that are happening throughout the city. Public works director Craig Stuttgen said there are many projects being done throughout the city in part because the TIF districts are performing so well.

Borchardt started by letting the council know that the Cedar Street reconstruction project was finished and the city would be making a final payment to close the project out.

He shared MSA’s timeline for the Swamp Buck Drive extension which will give access to the two or four new apartment buildings in TIF district 6. The council later approved a motion to award the bid for the project to Switlick & Sons, Inc. in the amount of $501,338 for the construction work on the project. Borchardt said MSA will continue working with The Boson Company regarding the expedited schedule for the project.

November 30 is the milestone completion date for construction of water, sewer and storm drains to be completed by. The project will then be paved next summer with a July 31 closeout date.

The city approved a bid for $38,000 to perform concrete crushing. Stuttgen said the excess concrete taken out from street projects is crushed and then sold to contractors in the future to be used for base for other road projects. The hope is to return a profit on the end product which is what has occurred in past years.