Two major factors led to a grim financial report at the most recent meeting of Hennessey’s town board.

“We’re already $330,000 in the hole and have another month to go (in this fiscal year),” said Hennessey Mayor Bert Gritz last Thursday night after he looked at current financials and the proposed 2020-21 budget.

Gritz said he’s “more concerned with the lack of oilfield business than I am about the COVID virus because that effect on our sales tax could be over in a couple of months when businesses reopen.”

He refers to the town’s general fund that’s almost totally dependent on sales tax income and that fund is “for the day-to-day operations of the town.”

The town’s utilities authority is separate and has income from water, sewer and sanitation services.

“We’re not the federal government and we can’t spend more than we have,” he said, “and I want to cut this budget wherever we can.”

He got no argument from other board members: Vice Mayor Clif Vogt, Wes Hardin, Keith Meek and Richard Simunek.

The mayor told Administrator Tiffany Tillman he was surprised she was “able to trim the new budget for a loss of only $122,000.”

“Right now it looks like we’ll have a shortfall of $450,000 over a two-year period,” Gritz said, “and we only have a reserve of $900,000.

“Granted, we’ve built up that money, but I’ve seen boards dipping into it in the past and we need to live within our means as close as we can. We need to make small adjustments now so they don’t get any bigger.”

“I agree,” said Simunek.

A copy of the recent financials are available for inspection at Town Hall, which is now open inside, as is the library.

The grim financial report caused the board to table an $8,950 item for an architect’s drawing of the library, which is required in order for the town to hire an architect to come up with a design to remodel, or build a new library.

Members also tabled a $3,800 quote to repair holes and cracks in the mortar joints in front of the library because Simunek said it was too high and he wants another quote.

Sales tax income low

Tillman said this month’s sales return ($90,786) was the lowest in several years and that’s 45% less than the May 2019 return of $165,763.

“And that just reflects March business because of a two-month lag in the return to the town,” said Gritz.

“So our 4-T’s (grocery store) money isn’t going to carry us,” said Meek.

The March 2020 return was $107,562; February was $122,362, and January was $127,030.

Swimming pool

“At least we collected enough sales tax money this month to make our ($16,000) loan payment on the swimming pool,” Tillman said.

Three-fourths of a cent of the town’s 3.5% sales tax goes to pay for the $2.1 million pool and bathhouse.

The new pool opening is expected in June with a capacity of 302 and it was filled with water on Tuesday, Tillman said.

Meek asked what the limit of swimmers will be due to the COVID-19 pandemic.

“302,” said the mayor.

“We could open it tomorrow with no limitations after the health department makes their inspection,” said Tillman. “There are no health department guidelines (because of the virus)…The pool has chlorine in it.”

Enid’s parks board recommended not opening its pool and splash pads this summer. Meek asked if there is a way that Hennesseyites would get favoritism instead of the Enid people who might come down to use the pool.

No one answered.

Waterline bid accepted

Marsau Enterprises of Enid had the low bid of $34,819.64 and got the job to install an eight-inch water line from wells 7 and 8. There were 10 bidders, according to the Cowan Group Engineering report.

Tillman said the highest bid was more than $100,00 and she’d had good reports about Marsau’s work.

Claim denied

The board routinely denied a tort claim so its insurance company could investigate it. Tillman said it was made by Gustavo Gutierrez about water damages to his home.

She said it was unknown if the damage was caused due to a faulty valve or if someone turned on the water.

CDBG grant

A contract with NODA that deals with a $300,000 CDBG grant on drainage work was approved for the mayor’s signature.

It’s for Phase 1 of the twophase project to make repairs at “Cristo Rey Church and others on Walnut Street to First Street,” said Tillman.

Phase 2 will include drainage work on Third, Fourth and Fifth streets west of Mitchell Road.