ROSEBORO — Finances for the town are looking good, and with a stable general fund, commissioners are proposing a tax rate decrease in the upcoming budget.
The Roseboro Town Board is scheduled to hold a public hearing June 13 and adopt the upcoming year’s budget of more than $1.9 million for all five of the town’s operating funds. The proposed budget was presented during a work session last week.
“I am very pleased to let you know that our draft budget was presented Tuesday night,” Roseboro mayor Alice Butler announced. “Included in the proposal is a tax rate of 66 cents (per $100 assessed valuation), which is a decrease of over 4 percent from our current rate or put another way, it is a 3 cent decrease in property taxes. Our town employees and town board work very hard to serve our citizens and to continually improve the quality of living in our town.”
According to the town’s budget proposal, the general fund is in excellent financial condition with a current cash balance of $1.35 million.
“Operational costs are being met in part due to growing revenues from the state,” the prepared budget read. “Fund balance of $67,000 is used to balance the general fund budget, as revenues are conservatively estimated. However, this draft budget does not include any major equipment purchases or capital investment.”
Depot fund
The town has been investing in the depot building in downtown. New flooring, roof and windows have been installed at the town’ expense. These items were all necessary for safety and damage prevention. More improvements are budgeted for the 2017-18 year, but the current rent is expected to cover these and normal operating costs.
Revolving loan fund
According to the budget proposal, revenues from previous loan recipients are estimated at $23,462, with six active loans. The fund has over $100,000 available for additional loans.
Water and sewer fund
The town of Roseboro has struggled in the past to build the water and sewer fund, but an increase in the sewer base rate should generate an additional $7,000, however the bulk of water sales for construction of the N.C. 24 bypass will be ending.
Contracted services are budgeted at $75,000 and capital outlay is budgeted at $30,000 to cover the costs for well No. 3 maintenance, sanding and painting the crane jib, installation of isolation valves and electrical repairs for the water system.
Funding for the town match of the AIA grant of $20,750 is included in the budget proposal. Projected utility revenues are $124,450 short of budgeted expenditures and the fund balance must budgeted to fill the gap. Without substantial growth in the water and sewer revenues, utility reserves will soon be depleted. According to the budget, the rates for customers are still not in line with escalating maintenance costs.
“This budget presentation is far from perfect and leaves unfunded many items needed for the town of Roseboro,” the budget statement reads.
