A public hearing on the city's proposed budget is scheduled for June 14 at 7 p.m. at the Lloyd Andrews City Meeting Hall.

In his summary of the budget proposed to go before the public next week, City Manager Paul Sabiston says the budget of $14,341,,526 has been prepared with no tax increase for the upcoming fiscal year. It is a decrease of $769,589 over the current fiscal year's financial plan.

"It is important to note the existing recession that has impacted this state and region for the last four years and the significantly slow rate of recovery," the summary says. "The city of Roanoke Rapids has struggled to provide essential services on an extremely narrow budget and with minimal staffing compared to recent years."

The summary notes property values in the city are decreasing and the unemployment rate in the county is 12 percent, above the state average of 9.7 percent. "Except for the police department, the city staff has not received merit salary increases in over three years and employee benefits such as healthcare are decreasing and becoming more expensive for the employees."

Sabiston writes, "The longevity pay for employees is also under consideration for being reduced."

As it has in the last few years, the theater issue has adversely impacted the budget, the memo says. The $1.7 million debt represents 12 percent of the city's expenditures. "On the positive side, over the last two years the city has been successful in increasing its undesignated fund balance from 8 percent in 2009 to a more adequate 28 percent as of April 30, 2011."

Revenue analysis

Sales taxes, the second largest source of city revenue, are expected to increase by 1 percent over the current year, however, fiscal year 2009 levels are down by more than 8.9 percent.

Interest income, while anticipated to be up, will be well below fiscal year 2009 levels.

Expenditure analysis

Employee wages will remain flat.

The city's contribution to the State and Local Government Employees Retirement System has increased from 4.85 percent of salary to 6.4 percent last year.

No new positions except for a police officer that is under consideration pending grant approval.

Three retirees in the Public Works Department will not be replaced and their duties will be replaced with contract labor.

A building inspector position in Planning and Development will not be replaced.

Capital outlay analysis

Replace five computers in administration and finance.

Financing of 13 police cars and a matching grant for body armor replacement.

Two replacement vehicles for the fire department.

For the public works department the following is proposed: Forklift equipment, salt brine tank, paint machine, fence replacement, waste oil heater, pressure washer, exhaust system, various alley improvements, large dump truck, resurfacing program, crack pouring, street maintenance, Virginia Avenue street design and solid waste transfer station design fees.

For parks and recreation the following is proposed: Diving board and stand replacement, two mower engine replacements, two scoreboard replacements. two bleacher pad installations and various fence repairs.

Debt service analysis

Total debt on July 1 is expected to be $2,378,755. The figure last year was $2,695,249.

Annual debt service payments from general fund in the proposed budget are $604,177 which represents 4.21 percent of the operating budget.

Debt service expenditures for the theater are expected to be $1,774,578.

Fund balance analysis

Total fund balance on June 30 is expected to be $7,416,995. Last year it was $7,373,854.

Approximately $3,074,050 is reserved. That leaves $4,342,945 for appropriation.