The City Council officially approved a $13 million fiscal plan and fee schedule Tuesday night that covers the minutiae of the next year’s finances — everything from a $2 million downtown revitalization project to the $1 fee for infant swimming diapers at Royal Lane pool.

The 2009-10 fiscal year budget totals $13,100,401 for all city operations, capital improvements and debt service requirements. That reflects a decrease of $781,582, or 5.63 percent, from the 2008-09 amended budget.

“We have cut this and cut this,” said mayor Lew Starling, just before the Council voted unanimously to approve the budget. “We have had budget sessions and we have gone over everything, line by line. We ended up with about a 1 percent increase in the water rate and no increase in the tax rate. We think it’s a positive budget, still paving streets and buying police cars and doing what we have to do to make sure everything runs as it should.”

The property tax rate will remain at $0.41 per $100 valuation, while other utility fees will rise slightly.

Solid waste fees will increase from $12.20 to $12.35 per month.

The minimum inside rates for water and sewer are rising 10 cents each, to $11.85 per month and $12.35 per 100 cubic feet, respectively.

Consumption water rates for all users will similarly spike from $1.72 to $1.75 per 100 cubic feet. The consumption rate is increasing from $1.70 to $1.73 per 100 cubic feet. Bulk wholesale water rates are increasing slightly from $1.58 to $1.60 per 100 cubic feet.

City manager John Connet has explained that the rise in water and sewer rates is due, in large part, to pay for the costs of maintaining, repairing and rehabilitating those services. One of those major costs has been the ongoing Dollar Branch sewer line rehabilitation, which has extended for the last several years and focused on a line that serves a majority of city residents.

The property tax rate of $0.41 is expected to provide approximately $2.3 million in tax revenues based on an anticipated collection rate of 95 percent. The tax base is estimated at $621 million. The special downtown tax district rate will stand at $0.20 per $100 valuation for the 2009-10 budget and encompasses approximately $25.5 million in tax base.

Budget highlights

As part of the approved budget, there will be three Chevrolet police vehicles purchased, two small pickup trucks purchased for use in the cemetery and water treatment plant, as well as the purchase of a garage service vehicle and a side-loading residential garbage truck.

All vehicle purchases are thoroughly evaluated to ensure departments are purchasing the most efficient vehicles, and maintenance and fuel costs are kept to a minimum, city officials said. In most cases, newer, more fuel-efficient vehicles were needed to replace aging models. The garbage truck, officials said, will reduce the number of trucks and personnel needed to perform garbage collections.

Additional 2009-10 expenditures include $200,000 in annual street resurfacing; $86,000 for capital improvements and new lighting at Royal Lane Park; and $50,000 for half the city’s match on the nearly $1 million water and sewer improvements being made in the area of Russell Street, with the assistance of a Community Development Block Grant.

For the first time, the budget incorporates a finalized Capital Improvement Program (CIP). The CIP provides a projection of the city’s capital needs over the next five years, allowing city staff to match needs in excess of $10,000 with projected revenues.

The 2009-10 CIP includes 18 projects totaling $4.54 million, 12 of which total $3.02 million in the General Fund. The other six, in the city’s Water and Sewer Fund, account for $1.52 million.

The General Fund CIP total includes $1.9 million, funded through USDA, for downtown revitalization and another $368,000 in the various vehicle purchases included in the budget — of which the side-loading garbage truck accounts for $210,000.

The Water and Sewer CIP includes three large projects that account for 84 percent of the approximate $1.52 million total, the largest of which is Dollar Branch Phase III ($600,000).

On the personnel side, an additional full-time firefighter position and a full-time position in the Recreation Department were each approved.

The city is currently having trouble finding part-time firefighters to work daytime shifts, and the full-time firefighter position is also expected to reduce the amount of overtime pay for part-time firefighters.

The recreation position was added to help with the additional workload within that department. Since adding the position, the number of complaints regarding registration has been “dramatically reduced,” Connet stated.

No raises

The city is not proposing any merit or cost of living raises for the 2009-10 fiscal year. In addition, it is being recommended to replace the $10,000-per year medical reimbursement plan with an employee flexible spending account at a cost of $4.75 per participant. There will be no increase to the city’s 401-K employer contribution of 2.25 percent. Employee health insurance is budgeted with a 5 percent increase.

According to Connet, the budget is a financial plan that has been developed with the Council’s goals and objectives — “sustaining a clean and beautiful city, providing clean and safe neighborhoods and constructing and maintaining sound infrastructure” — in mind.

Connet said city officials and staff would continue to work to promote and achieve positive growth, in an effort to come up with ways to cover the need for additional revenue and maintain long-term health for the city of Clinton.

“We continue to work with Sampson County Economic Development Commission and property owners to develop potential industrial and commercial sites to diversify our expanding tax base,” stated Connet in his budget overview. “Our desire is to take advantage of our location and workforce to generate growth opportunities. Neither the staff nor the City Council have a crystal ball that can tell us what the future will bring, but we all must continue to strive to make the best possible decisions for the long-term health of the city of Clinton.”

Chris Berendt can be reached at 910-592-8137, ext. 121, or by email at sicrime@myclintonnc.com.