In a sea of budget cuts, the city of LaGrange is floating comfortably on top with its proposed 2010-11 budget. And not a single layoff, furlough day or fee increase is in sight.

City Council spent hours going over its proposed budget from beginning to end, covering all subjects and available capital.

The good news is that the city is in fine condition, City Manager Tom Hall said. The bad news is that council and city employees still have a few areas to work on.

“There is no property tax recommended. There is no utility increase recommended,” Hall said. “The cost of government and our cost of service to the public (is not expected to go up).”

The city has contemplated reductions in personnel, although no cuts were recommended. In some areas, two-part time employees were replaced by a full-time employee and a few unfilled spots will remain vacant.

City employment is down, but employees have been doing the same amount of work, in some places more, with an estimated 383 people for 2010-11, down from 441 in 2004-05. A total of nine employees will be removed from the books.

“Every time there’s a loss of a person through attrition, through termination, whatever reason, we always evaluate the city’s needs,” Hall said. “Every time we lose somebody we evaluate the organization and see what’s necessary.”

Building permits are also down. The city went four full months without seeing a single permit, and fiscal year 2009-10 saw a $100,000 drop in permits from an estimated $250,000 budget.

Budgets for the fire and police departments aren’t expected to have big changes, although gasoline prices are still a challenge financially, showing a proposed $215,000 for police and $45,000 for fire.

“Who knows what it’s going to do going forward,” Hall said.

Fire personnel are showing an expenditure of $15,000 for new cardiac monitors to aid them in emergency calls, one of their primary responsibilities. Currently, all other equipment, including trucks, is in good condition.

“Our response times remain very good,” he said.

Although nothing has been proposed, council may look at removing an employee from the department of community development if building permits remain at extremely low numbers.

“If nothing happens and we continue to sell zero building permits, the need for the staff is somewhat dubious,” Hall said. “We’re not proposing anything.”

The city’s general fund budget shows an estimated fiscal year 2010-11 budget of $22.4 million with expenses totaling $20.4 million, for an estimated final cash balance of about $2 million.

Utility prices also are expected to be strong, with electricity and water and sewer continuing to produce increasing funds for the general budget.

About $11 million in profit is expected to be transferred to other parts of the city budget and continue to allow the city to not require property taxes.

“That would be the equivalent of about 12 or 13 mills in tax that you get to avoid by operating the city as we have,” Hall said.

No residential or commercial rate increases are proposed for the new budget.

Here are highlights of the 2010-11 budget:

— Water and Sewer Fund

The department’s budget shows an estimated fiscal year 2010-11 budget of $22.6 million with expenses totaling $17.8 million, for an estimated final cash balance of about $4.8 million.

The department shows expenditures of $55,000 for two replacement trucks and is also looking to purchase a new lugger truck and a sludge truck for the city’s wastewater treatment plant. About $19,800 is also expected to be spent for a new camera to allow employees to see inside water pipes.

About $1.2 million in funds will be transferred to other budget areas.

— Electric Fund

The department’s budget shows an estimated $51.5 million with expenses totaling $46.6 million, for an estimated final cash balance of about $4.9 million.

A new service bucket truck is expected to be purchased, with $148,000 budgeted for the expense.

About $7.8 million in funds will be transferred to other budget areas.

“The electric fund is the biggest moneymaker and the biggest contributor,” Hall said.

— Gas Fund

The department’s budget shows an estimated $20 million with expenses totaling $17.7 million, for an estimated final cash balance of about $2.3 million.

“Expenditures are down and revenue is up,” Hall said. “The gas fund is improving its financial position.”

Commercial gas has proved to be a big seller, with industrial sales up 26 percent and Kia Motors plant in West Point remaining about 15 percent of the city’s gas load.

About $500,000 in surplus equipment is expected to be sold out of the city’s Peak Plant, which is no longer needed thanks to more gas lines being available to carry gas at peak usage.

The department shows expenditures of about $156,000 for machinery and motor vehicles, including a trailer, mini excavator and a “mudvac” to help find where utility pipes are located.

About $2.2 million in funds will be transferred to other budget areas.

— Telecommunication Fund

The department’s budget shows an estimated $5.4 million with expenses totaling $2.4 million, for an estimated final cash balance of about $3 million.

About $700,000 in funds will be transferred to other budget areas.

— Sanitation Fund

The department’s budget shows an estimated $7.9 million with expenses totaling $6.3 million, for an estimated final cash balance of about $1.6 million.

“You’re a little bit in the hole right now,” Hall said. “A lot depends on our ability to get some more waste at the landfill.”

“The commercial side has improved and is improving. Your residential work is fine.”

The department is expected to utilize a special lease agreement that will allow it to purchase needed vehicles by November without making a payment until November 2011.

The city plans on purchasing a residential garbage truck valued at $180,000, a collection front loader for $200,000 and a compactor for the landfill valued at $580,000.

“This is expensive stuff,” Hall said. “We’re talking about maybe making some changes (at the landfill) and staffing that with inmates and a guard.”

No funds will be transferred to other budget areas.

In all, Hall feels that the budget will be strong for fiscal year 2010-11, although it could change between July 1 and June 30, 2011.

“All in all, it’s a very strong budget,” Hall said. “I’m very pleased with how it works.”

Trey Wood can be reached at twood @ lagrangenews. com or (706) 884-7311, Ext. 228.