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Local News - May 2002 |
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New city budget won’t raise taxes By ALICE SMITH, LTN Staff Writer May 1, 2002 - Citizens will not see any tax or utility increases next year if the proposed 2002-03 city budget is adopted. City Manager Jeff Emory presented the budget to the city council at a budget work session Tuesday. The proposed budget is $22,277,800 — $18,500 less than the current year, or less than a 1 percent difference. The tax rate, electric fees and water/sewer fees will remain the same. Municipal services will remain at the current level. Emory said keeping the budget practically the same was difficult. “Getting it to that point was not terribly easy,” he said. The only increase in the budget is the electric fund, which grew by $239,300. Completing the East Main Street lighting project accounts for $100,000 of the proposed $245,000 capital expenditures. Council members noted that none of the electric fund additions will affect users. “We’ve had several electric increases that we haven’t passed on to our customers,” council member Les Cloninger said. There has been a big decrease in water and sewer revenues, Emory said. Proposed spending for distribution and collection decreased by $235,000, which is attributed to a decrease in consumption for the current year. Although it’s hard to pinpoint the exact reason for the decrease, Emory said industrial sewer use is a large factor. Water consumption is also down. Emory hopes that by not increasing fees, the city will keep bigger, industrial customers. Emory called the decrease “disturbing,” and said he hopes the trend will turn around. Although no increases in water or sewer have been made in the past couple of years, Emory said, things will probably change after the 2002-03 fiscal year, when additional debt from the waste water treatment plant upgrade will begin to be paid off. Councilman Fred Houser said it is important that the public realizes things could change after next year. Emory said that although the current fiscal year is not pleasant, the city is very fortunate not to have to take drastic actions. Because of the fiscal emergency declared by the governor this year, the franchise tax was withheld from municipalities. The franchise tax is the utility tax collected by the state and paid to the municipalities. For Lincolnton, that amount was $600,000. Department heads were asked how the budget could be cut, and as a result, 11 city positions were frozen. Those positions will probably not be filled this year, Emory said. The proposed budget includes the franchise reimbursements. Emory said that while he doesn’t hold high hopes to get the money that was withheld this year, he is budgeting the reimbursements for next year. “If we don’t receive (the reimbursements), it may be necessary to take additional actions,” Emory said. “I think we can still come real close to making it.” The fund balance, which is the city’s savings, may have to be used. Houser said making the reimbursements part of the budget is important. “I think this is the only way to keep pressure on the legislature,” Houser said. Emory said it is important to note that the city didn’t place any additional burden on citizens. “These have been difficult times for everyone,” he said. “The city’s really done their part to help.”
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© 2001 Lincoln Times-News |
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