WARSAW — By unanimous vote, the $2.2 million budget for fiscal year 2010-11 was approved by the Warsaw town board Monday night. There will be no tax hike, but residents will see a rise in water and sewer fees.

Town manager J.R. Steigerwald presented the final budget to town commissioners, and then the public hearing was held to address any concerns. No one spoke to the budget and the vote was taken without any further discussion.

According to the manager, the budget increase was primarily due to the establishment of the recreation program slated for the Warsaw Health and Wellness Center that will open in August. Steigerwald informed the board that a director for the recreation department was presented on offer for employment and he was awaiting a response. It is his hope, he noted, to have a person in place before the end of June.

The adopted budget did not reflect an increase in property taxes but there will be an increase of 5 percent in the minimum use of water and sewage as well as a five percent increase in both for those who are high volume users. The tax rate will remain at $0.55 per $100 evaluation.

“We have been mandated by federal guidelines to make our water system self-supporting,” said the manager, adding that federal officials had recommended a 17 percent increase in order to accomplish the self-sufficiency goal.

The federal government is involved due to the funding for the water treatment plant that the town has received and the guidelines are a part of the grant requirements.

“Hopefully, with the small increase on both the upper and lower use customers, we will be able to achieve the same goal.”

Mayor Win Batten explained that revenues from taxes had been good this past year and the projected revenue from these sources appear to be in good shape for the next fiscal year.

Funds expected to come from the general fund balance in order for the budget to balanced are down considerably from what was used to balance the 2009-10 budget. The expected general fund balance transfer is only $107,490 as compared to the $300,000 used to balance this year’s budget. “We are hoping that some of the revenue sources we have been receiving will be extended by the Legislature or Congress. Funding from some specific program are scheduled to expire at the end of June, but there is some talk that those programs will be extended. If they are we will not have to go to the general fund to balance the budget,” explained Steigerwald.

The new budget does set aside $50,000 in a contingency fund for emergencies. This fund would make money available in emergencies where the town’s administration, (manager and mayor) could access the account in certain situations without the board having to meet to appropriate the funds. A polling of the commissioners would be conducted and the administration could then make needed expenditures to help with the crisis at hand. The contingency funds could also be used by the council in emergency situations as well.

In other matters discussed by the town board, Warsaw’s awarding of a N.C. STEP grant was discussed and the plaque received during a two-day workshop earlier this month was displayed. Look for a follow-up story on this program in a later edition of The Independent. STEP stands for Small Town Economic Prosperity and the town will receive $125,000 to develop and implement an economic development plan over then next two years. The manager reported that Powell Bill monies were being used to enhance the streets and sidewalks throughout the town.

Steigerwald also shared that the Wellness and Fitness Center was nearing completion and that several small groups were already utilizing the facilities. He said that the Duplin County Health Department would be utilizing the center one day a week to provide services to the public. If the need increases they will come two days per week. Several other programs including the Warsaw Summer Reading Program and a summer basketball league will be using the center over the summer.

A big kick-off for the STEP Program introduction to the community and the opening of the Warsaw Health and Wellness Center is being planned for August. The mayor expressed a desire that everyone attend the event.