A little more than one month before the start of the new fiscal year, Montgomery County towns are all at different stages of work on their new budgets, but none have been finalized. All the boards are facing difficult choices in light of increased water charges from the county, dramatic rises in fuel costs and the same tough economy affecting everyone.
Biscoe - Commissioners have held three budget work sessions with another set for May 29. The current property tax rate is 55 cents per $100 valuation. The in-town water/sewer rate for a minimum of 2,000 gallons totals $12.48, with charges to out-of-town customers considerably higher.
"In all our meetings so far, the discussions have been on the key issues, water rates and fuel prices," said Town Manager Brooks Lockhart.
When Lockhart first started working on budget figures, he was estimating fuel at $3.50 a gallon. Since then, he’s upped it to $4.50, which could add another $45,000 to the expenditure side of the budget. "That equates to a 4 to 5-cent tax increase for fuel alone at the current property value," he said.
Regarding increased water and sewer costs, Lockhart said "it’s a given" that the 19-percent increase in county water charges will have to be passed to customers, but no decision has been made yet as to how that will be broken down between in-town and out-of-town consumers.
All department budget requests are being carefully considered, including the police department that currently takes $588,000 of the town’s total $1.3 million budget for capital and operating expenses.
Town employees received a cost of living increase last year slightly higher than the consumer price index of around 4 percent. The CPI is also about 4 percent this year and he’d like to give that amount in wage increases but isn’t certain that’s possible.
"It’s a really tough budget year and we’ve had discussions about ways to cut expenses, but nothing’s been decided yet," he said. He will have his budget message finalized following the May 29 session, and current plans are to hold the required public hearing at the board’s June 9 regular meeting.
Candor - Mayor Becky Williams said Mechelle Smith and new clerk Tammy Kellis are just getting started putting the numbers together for Candor’s budget and no schedule for work sessions has been set, other than knowing the budget must be approved by June 30.
Candor’s current property tax rate is 58 cents and the 2,000-gallon minimum for water/sewer is $28.46 for in-town customers with higher rates for those outside town limits.
Mt. Gilead – Town Manager Bryan Thompson planned to have his balanced budget proposal ready for presentation at the board’s May 19 meeting. The board had two budget meetings prior to Monday and will likely have another May 22.
The current tax rate is 58 cents per $100 and Thompson’s draft budget increases that to 61 cents, which he said brings Mt. Gilead more in line with the other towns based on per unit costs and Mt. Gilead’s generally lower property values. Other revenues, such as motor vehicle and sales taxes are expected to be down due to the weak economy.
The town has not given cost of living salary increases since Thompson became manager, but has funded a merit-based system of up to 5 percent, which is also plugged into the proposed budget.
Again this year, two additional police officers "is still a bit out of our reach," Thompson said. However, he worked with Chief Joe Amos and proposed enough funds for extra police presence on peak weekends and other high need times based on past history.
The proposal includes a few new items in the water/sewer fund that will help cut costs in the long run by allowing employees to keep up with remote lift stations by computer, cutting back on gas and staff time, as well as instituting the first phase of a more efficient radio read water meter system.
The new water/sewer rate structure, based on a recently completed rate study, includes the 19-percent higher water costs the town pays to the county. Currently, in-town customers pay $29 for a minimum of 2,000 gallons. The new in-town plan does away with the minimum gallon basis, but includes a $12.33 combined water/sewer for zero gallons and $12.34 for each 1,000 gallons. "This should be a help to lower income and elderly customers who typically use less, so we expect they’ll be paying less this way," Thompson said. Out-of-town rate structure remains the same, with an increase in water only.
Star - Commissioners had a brief first budget discussion during their regular May meeting and have a work session scheduled for June 2.
The current property tax rate is 61 cents. "We know it will take 5 cents just to make up for the loss of Clayson," said Town Clerk Robin Hussey referring to lost property taxes from the knitting plant closure this past year.
Town employees received no salary increase last year and the board has asked Hussey to put together figures on what it would take to do increases of 2, 3 or 4 percent this year.
Star does water/sewer bills for two months at a time, and currently charges $40 for a 4,000-gallon minimum for water and sewer. "We’re looking to increase at least the 19 percent from the county and maybe more," she said. "Commissioners haven’t really talked about any specific cuts at this point."
Troy – Town Manager Greg Zephir handed out his proposed budget May 5 and the board met in work session May 8 to go over the draft. At their regular meeting Monday night, they set a public hearing and budget adoption date for June 16.
As proposed, the budget holds the tax rate at the current 48 cents and keeps the garbage collection fee at $6.50 a month by switching from twice to once a week collection, which started this month.
In addition to the 19-percent increase in bulk water costs from the county, Troy also was heavily impacted by the poultry plant closure this past year, estimated at 15 percent of water/sewer revenues.
Last year, the board approved a two-step increase, 4 percent in the current year and 3 percent planned for this year. The proposed budget, however, now calls for a 9-percent increase in the minimum water/sewer bill for in-town customers, bumping it up $1.55 a month to $28.50 for 2,000 gallons plus trash collection. Out-of-town rates will increase to reflect the new county bulk rate.
As proposed, the budget provides for an additional police officer, made possible by recent changes in personnel and minimizing overtime costs. It includes a flat, across the board $800 salary increase for town staff and funds for possible performance-based merit increases.
