Photo by Chris Berendt
Chris Doherty, public works director for the city of Clinton, standing, briefs City Council earlier this week on proposed fee changes included in the 2010-11 budget as city manager John Connet listens.
That is what the city of Clinton’s recommended 2010-11 budget proposes, along with slightly increasing rates and fees for utilities, eliminating three positions and suspending raises and 401(k) contributions for employees.
The 2010-11 proposed budget totals $12,677,115 for all city operations, capital improvements and debt service requirements, marking a decrease of about $1.06 million, or 7.7 percent, from the 2009-10 amended budget. The General Fund totals approximately $8.14 million, a slash of nearly 10 percent from the current year’s amended budget of $9.01 million.
“This budget has been built around the fact that revenues have been declining,” said city manager John Connet. “This budget is built around where we currently are, and where we think we need to be.”
The budget calls for the property tax rate to stay at $0.41 per $100 valuation. The rate is expected to bring in roughly $2.56 million in tax revenues in 2010-11 based on a collection rate of 95 percent. The tax base is estimated around $621 million.
In addition to property tax, sales tax revenues are estimated to be $1.35 million and utility franchise tax revenue is expected to produce $805,000. All will be used toward funding general government operations for the city. With the economic decline, Connet said sales tax has been down, but is starting to climb.
“Sales tax revenues were up $17,000 from this month last year,” the city manager noted. “Sales tax revenues are starting to creep up, but we don’t know if that will continue.”
With revenue streams not where they once were, and not wishing to raise taxes, numerous budget-tightening measures are being taken under the city’s proposed fiscal plan.
City staff is proposing to increase solid waste fees from $12.35 to $13. Base rates for water and sewer would each increase by 15 cents and consumption rates would both go up a hair. Base rates for water will increase from $11.85 to $12 per month and the consumption rate will rise slightly from $1.75 to $1.80 per 100 cubic feet. Similarly, proposed new rates for sewer would increase from $12.35 to $12.50 per 100 cubic feet and the consumption rate would rise a mere two cents to $1.75 per 100 cubic feet.
“We tried to keep everything as minimal as possible,” said Chris Doherty, director of the city’s public works.
In recreation, youth sports registration fees for non-city residents is set to climb from $25 to $30. A late registration fee of $5 would also be imposed under the proposed budget, a recommendation from the Recreation Advisory Board.
“We’re expecting to get a lot of people from the county based on what’s been going on,” city recreation director Judi Nicholson said, alluding to a scaled-down recreation program being discussed as part of county budget talks. “What that does is encourage them to come on in and sign up.”
She and other city officials emphasized that no one who wishes to participate in city recreation programs has been turned away due to inability to pay fees, and that will not start now.
City staff is proposing to eliminate three positions, including one police officer and a building maintenance worker, both of whom are retiring, and an assistant recreation program coordinator, who resigned. Connet said those duties would be assumed within their respective departments or by hiring part-time help. The budget also proposes to reduce the number of on-duty firefighters from five to four on nights and weekends. Connet said the elimination of the positions would result in a savings of $96,000.
Additionally, the budget includes no new position and no merit or cost of living adjustment raises for the 2010-11 year. The city has also proposed to suspend its 401(k) contribution for the next fiscal year, which amounts to $72,000. The city has been contributing 2.25 percent of each employee’s salary into a 401(k) account. Sworn law enforcement officers will be maintained at its current 5 percent rate as required by state statute. Employee health insurance has been budgeted with a 5 percent increase.
As part of the upcoming budget, a two-month hiring freeze will be in effect on any full-time position that is vacated during the 2010-11 fiscal year. The two-month freeze will allow staff to evaluate the need for the position and determine whether it should be filled or eliminated.
Some capital expenses included as part of the 2010-11 budget are the purchase of new vehicles to replace aging ones, including three Chevrolet police vehicles, one leaf vacuum for the streets department and one pickup truck for grounds maintenance and cemetery upkeep.
Other capital expenses being proposed are a Sampson Community Theatre electrical wiring upgrade, in the amount of $50,000; Royal Lane improvements, to include playground replacement and pool rehabilitation, at a cost of $83,000; water tank maintenance; and other revitalization projects.
Connet stated that, despite economic times that have put many local governments in a pinch, the city of Clinton remains in good shape.
The N.C. Local Government Commission recommends that all local governments maintain a minimum undesignated fund balance of no less than 8 percent of expenditures. The city has previously adopted its own standard of 38 percent, with any excess funds able to be designated for capital purchases. The city of Clinton’s estimated undesignated fund balance on June 30, 2010 is approximately $3.8 million, or 45 percent of expenditures.
In his budget message, Connet pointed to personnel as being key to Clinton’s long-term health.
“In planning for the future, we must be vigilant in understanding how personnel costs directly affect the long-term health of the city of Clinton,” the city manager stated. “It is important that we have adequate personnel that are properly trained to meet service demands and emergency situations. In order to have these personnel, we must maintain a competitive pay and classification plan for our full-time workers. At the same time, the city must make better utilization of temporary and part-time employees to fill positions that are needed for seasonal work or special projects.”
Chris Berendt can be reached at 910-592-8137, ext. 121, or by email at sicrime@heartlandpublications.com.
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