The city of Clinton has proposed hikes in water and sewer fees, as well as garbage collection, that could mean a bill less than $2 higher a month for most residential users. The budget calls for no tax increase.

The proposed 2009-10 recommended budget totals $13,159,069 for all city operations, capital improvements and debt service requirements, a decrease of $717,914, or 5.17 percent, from the 2008-09 amended budget.

The property tax rate is proposed to stay at $0.41 per $100 valuation, while other utility fees would rise.

Under the proposed budget, solid waste fees would increase from $12.20 to $12.35.

The proposed new rates would change the minimum inside rates for water from $11.75 to $11.85 per month and consumption water rates for all users from $1.72 to $1.75 per 100 cubic feet. Bulk wholesale water rates would also rise slightly from $1.58 to $1.60 per 100 cubic feet.

Likewise, inside rates for sewer would go up by 10 cents, from $12.25 to $12.35 per 100 cubic feet. The consumption rate would increase from $1.70 per 100 cubic feet to $1.73, under the proposed budget.

Chris Doherty, director of the city’s Public Works and Utilities Department, said fee and rate increases were kept at a bare minimum.

“Everything is less than 2 percent,” said Doherty. “We tried to keep it at 1 or 2 percent.”

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 applicant. There is no proposal to increase the city’s 401-K employer contribution of 2.25 percent.

Despite minimal budgetary increases, mayor Lew Starling said the city’s water and sewer fund has come a long way.

About seven years ago, the city’s Water and Sewer Fund was said to be “in peril,” Starling said.

“It’s going in the right direction,” the mayor remarked. “It was going in the wrong direction and we changed that. Slowly, but surely.”

Among other items in the budget, city manager John Connet noted that the city of Clinton is currently in the initial phase of two programs that will be funded by federal stimulus funds.

“These funds have allowed us to undertake several projects that may not have been feasible if they were part of the 2009-10 fiscal year budgets,” stated Connet. “We are continuing to look for other ways to utilize these funds to create jobs and improve our community.”

Stimulus funds have been procured for police department equipment purchases, in the amount of $41,000, and water treatment plant storage tank expansion, in the amount of $428,000. The city had also submitted shovel-ready projects much larger in scope to be eligible for the federal funds.

“A lot of bigger money went to bigger cities, 6, 7 million dollars toward the Greensboros and the Raleighs,” said Connet. “They went down the list. We kind of came in at the end of it.”

The city manager said the rise in water and sewer rates was due in large part to the costs to repair and rehabilitate the services, as well as the debt service to pay for projects that did just that. One of those projects was the Dollar Branch rehabilitation, which has been ongoing for the last several years and has focused on a sewer line serving many of the city’s residents.

Doherty expected the cost to be minimal to taxpayers.

For a resident who uses approximately 300 cubic feet (CCF-approximately 2,200 gallons), their bill will go up about $0.34. For a 1,000 CCF customer (approximately 7,500 gallons), the bill will rise about $0.86. A user of 15,000 gallons (roughly 2,000 CCF), the bill will reflect a $1.46 increase.

Similarly, commercial user averaging 30,000 CCF will see a bill about $18 higher, while local industries that use around 3 to 4 million cubic feet, such as Smithfield Foods, Doherty noted, will have to pay about $1,100 more.

“In this economy, you might be asking ‘why increase rates at all?” Connet said during a budget session last week. “We have programs coming down the road and we wanted to prepare for that. We also wanted to be eligible for future grants.”

To be eligible, the city has to have a good conservation rate.

“We want to see if we can get a minimal increase this year, and go incrementally up from there,” the city manager said.

Connet expressed the uncertainty of the city’s economy, noting three large industrial buildings sitting vacant and the recent establishment of a new industry, whose impact likely will not be realized for several years to come.

“Due to the current economic conditions, I am not proposing a tax increase for the 2009-10 fiscal year,” Connet stated in his budget message. “We will continue to put a greater emphasis on economic development activities to strengthen our commercial and industrial job opportunities. In addition, we will explore water and sewer extension opportunities to increase population and tax base. Our desire is to take advantage of our location and workforce to generate growth opportunities.”

Nothing has yet been approved. The City Council must approve the 2009-10 budget by June 30.