Council working to balance revenues and expenditures
Published 10:00 am Monday, May 1, 2017
During its retreat in February, Washington’s City Council began laying the foundation for a series of work sessions on the 2017-2018 fiscal year budget.
Those sessions begin today at 5:30 p.m. in the Council Chambers of the Municipal Building. Today’s session, according to an agenda, is dedicated to working on the $15 million general fund, part of the overall $75 million proposed budget. Other sessions are scheduled for Tuesday through Thursday.
Although the city manager’s recommended budget increases the property-tax rate by 3 cents per $100 valuation that does not automatically result in a tax increase. The proposed budget would increase the property tax rate from 52 cents per $100 valuation to 55 cents, which would raise the annual taxes on a house valued at $100,000 by $30, or from $520 a year to $550.
The council has final say on the budget and any change in the tax rate and fees the city charges for various services and programs.
In recent years, some usual revenue sources produced less revenue than before, according to the city’s most recent financial audit. One of those revenue sources — the business privilege licenses — was taken away by the North Carolina General Assembly several years ago, costing the city at least $100,000 each fiscal year. The city took in about $123,000 in such revenue during the 2014 fiscal year, according to city officials.
Although the General Assembly promised to provide an alternate revenue source after it took away the city’s authority to generate revenue by issuing business privilege licenses, it has yet to do so.
That loss of revenue and the loss of the $300,000 caused by the cancellation of the EMS contract between the city and county presents a challenge to the city in that it must find sources of revenue to replace what it’s been lost.
It’s likely that one council member will want the council to consider decreasing electric rates for some, if not all, city power customers.
Last month, Councilman Doug Mercer said he’s somewhat surprised the proposed budget does not include a rate reduction for the city’s power customers. “We’re getting a rate reduction — actually the first of this month — from the ElectriCities group. I personally think we ought to pass at least part of that along to the customers,” he said then.
The proposed budget does not increase water, sewer and stormwater fees. It continues to set aside money for public-safety needs, including a new police station.
State law requires the upcoming budget to be in place by July 1.