Scherer said following a work session this afternoon he is preparing the proposed financial plan without raising taxes.

Projected revenues stand around $13.8 million, Finance Director MeLinda Hite said. Estimated expenditures stand around $18.1 million.

Scherer said, however, that a good portion of the estimated expenditures will be assigned to a three- to five-year capital spending plan.

The $18 million figure includes the $1.8 million the city is still paying Bank of America for debt payments on what is currently called the Royal Palace Theatre, in which there are still 14 years of payments left.

“This is why it is important to try to reduce or extinguish ourselves or to look for alternatives to get it off city ownership,” Mayor Emery Doughtie said. “Just think of how nice it would be to fix things. We have to tell them we're doing the best we can. It makes a huge difference. We're looking at 14 years left. We can't continue going on that path for 14 years.”

Asked following the meeting about imposing a tax increase for the upcoming fiscal year, the mayor said, “We're looking at all options available. I'm not ready to say tax increase. We want to provide the best services we can. We don't want a tax increase to get more money but to try to improve the quality of life.”

Hite said of today's revenue projections, “They are the best revenue projections I can provide you with today. It's a moving target with what's taking place in the General Assembly, the uncertainty.”

In the proposed budget, Hite estimates the total tax levy to be $7,062,356.

That represents a $270,015 shortfall without an increase in revenue neutral tax rate.

Powell Bill funds, which are used for street improvements, have decreased by 1 percent to $465,358.

One of the biggest projected hits will be in the loss of privilege license fees.

The city budgeted $371,763 for the current fiscal year. The $1,000 that is budgeted in the line item, Hite said, comes from beer and wine sales.

The bright spot that could possibly fill the gap in the loss of privilege license fees comes in the form of House Bill 709. If passed, that bill, Scherer said, would allow cities to levy a one-quarter cent sales tax. For Roanoke Rapids that would bring in $525,000.

Scherer said following the work session he will be looking at the expenditures and revenues carefully so at the May 7 work session he can present a complete budget to council. “I think the main thing is to provide one to provide effective services to the community and to develop other options to consider.”