By Taylor Sisk
Staff Writer
Carrboro – While acknowledging signs of an upturn in the economy, Carrboro Town Manager Steve Stewart presented his proposed 2010-11 budget at Tuesday night’s Board of Aldermen meeting at Town Hall as one that reflects the reality of lagging property tax and sales receipts.
Stewart’s proposed $18, 525,685 budget represents a $549,749 decrease from this year’s budget.
Like this year’s budget, Stewart said the proposal avoids a tax-rate increase, while attempting to maintain the current level of services and continue planned capital projects.
The manager said property taxes grew by less than 1 percent this year, while sales taxes are showing a 4.1 percent decrease over a seven-month period as compared with the same time period in 2008-09. The town also is awaiting word on the county and state budgets, which could necessitate further belt tightening.
“Understanding the limited growth of town revenues, a word of caution is needed in understanding that the interests of maintaining town services and employee benefits without increasing the tax rate in this recommended budget will require the Town to pay for short and long-term commitments in the future that can only be covered through growth in the revenue stream and/or future tax increases,†Stewart said in a memo to the board.
The majority of the decrease in the recommended budget is a $367,861 reduction in reserves transferred from the capital reserve fund. Last year, $544,806 of the fund was used to cover the cost of street resurfacing. This year Stewart proposed using $176,945 to help offset the increase in debt service for the new fire station and finance replacement vehicles.
Stewart hopes that by tightening operating expenditures, the town will be able to continue with Weaver Street reconstruction, the sidewalk and greenways bond initiatives, the opening of the new fire station and replacement of essential vehicles.
The recommended budget calls for a $141,378 increase in personnel costs. It continues a hiring freeze and delays for a second year an already approved pay-for-performance plan. Each employee will receive a one-time bonus of approximately $455, which totaled is equivalent to 1 percent of the town’s payroll. Part-time employees will receive a pro-rated bonus.
The major capital outlay in the budget is $560,000 in vehicle and equipment replacements, including $154,000 for a new boom truck for trash collection and $160,000 for a fire-suppression truck. The capital budget delays bathroom replacement at Wilson Park and the Adams Tract pedestrian bridge.
The board will continue its review of the budget during a work session on May 25.