HERMANN — The COVID-19 pandemic might be over but its effects continue to hamper local government operations, such as the budgeting process at Hermann City Hall. Those supply-chain problems we all heard about the past two years have yet to be resolved.

City Administrator Patricia Heaney referred to that problem in her message to the Board of Aldermen late last month as she presented the new fiscal year’s spending plan calling for $21.4 million in available revenue and expenditures of $14.4 million.

“Due to the cautious budgeting over the last couple of years, all the departments started (the new fiscal year July 1) in the black upon the first draft of this budget,” Heaney said. “However, due to continued uncertainties in the economy and rising inflation, we have once again budgeted conservatively. Supply-chain delays continue to create budgeting challenges,” she added.

Indeed, as she explained at the aldermen’s second regular session of June, the delays are affecting the delivery of vehicles that were ordered several months ago. And those delays are resulting in bigger price tags attached to those vehicles. Heaney told the aldermen that, when delivered, it’s expected the new vehicles will be several hundred dollars more expensive than when they were ordered. The only option the city would have regarding the higher price is to refuse to accept delivery, she said.

“Several vehicles budgeted and ordered last (fiscal) year have yet to arrive; therefore, they have been carried over into this year’s budget,” the city administrator said.

This year’s spending blueprint has total anticipated revenue of $12,992,023, down from last fiscal year. While last fiscal year’s sales tax receipts were 5 percent higher than in FY21-22, sales tax dollars in this fiscal year are projected to be flat, Heaney said.

Putting the budgeted expenses of $14,449,174 against the total available revenue (this year’s anticipated revenue plus year-end balance in FY22-23) of $21,407,495 would leave a year-end balance of almost $7 million, figures show.

“This is a healthy year-end position,” Heaney said in the budget message.

Because the city buys and then sells electricity to residents, commercial and industrial users, the utility portion of the city’s budget is a key component of revenue. Regarding the Electricity Fund, the city administrator notes that less money is expected from this source because of the loss of Pretium Packaging, a large electricity user.

“Estimates were challenging this year,” Heaney said in the budget message, “as Quality Custom Molds is coming online in stages, and overall is expected to use less power than Pretium. However, QCM does desire to expand their operations.”

Pretium closed its local manufacturing plant as it consolidated operations at its St. Charles County site. Quality Custom Molds has been operating in leased space in Linn and has purchased the former Pretium plan in Hermann as a site for its operations.

The city’s General Fund — which includes much of the local government’s operations — would have an ending balance of $318,851, based on the budget.

While the Hermann Police Department will be benefiting from a portion of the Gasconade County Law Enforcement Sales Tax, other components of the General Fund will see increased spending this fiscal year. For instance, Heaney said a substantial amount of money would be spent on City Hall improvements, including a new emergency generator, foundation stabilization, drainpipe installation, porch repairs and landscape work.

Legislation authorizing this year’s budget also included a salary schedule for city employees. While some employees have a hourly wage range, others fall within a salaried range of pay. For instance, the city administrator’s post is the highest-paid position of city government with an annual salary of between $75,000 and $98,000. The city clerk and finance clerk each have a pay range of $46,000 to $50,000.

The foreman of the Electricity Department will be paid between $32 and hour and $45 an hour while the Street Department foreman will be paid between $20 an hour and $26 an hour.

The foreman of the Electricity Department also serves as the director of the Department of Public Works and for that role will be paid between $15,000 and $18,000 a year.

Regarding the Police Department, Heaney noted that the agency will be using its portion of funds from the county’s half-cent Law Enforcement Sales Tax on vehicles, equipment and pay raises for the rank-and-file officers. The chief of police position will be paid a salary of between $62,000 and $78,000 a year. A first-year full-time patrolman will receive an hourly wage of between $25 and $28.

Another top-paid member of the administration is the director of tourism and economic development. That position this year will be paid between $42,000 and $63,000.

According to the authorizing legislation, the exact amount of pay for an employee is set by the city administrator, or by the mayor if the city administrator’s office is vacant. The pay for an employee is in place until the start of the next fiscal year. However, any raises during a fiscal year, as recommended by the city administrator or the mayor in the absence of the city administrator, must be made through legislation adopted by the Board of Aldermen.