City Manager Joseph Scherer presented to council tonight a proposed $14,787,339 fiscal plan for the upcoming budget year that calls for no tax increase and keeps services and personnel at current levels.
In presenting the proposed 2013-2014 fiscal year budget, the city manager also announced intentions to begin a capital improvement plan and debt service reductions for Roanoke Rapids Fire Station 2 and the Neighborhood Resource Center on Jackson Street.
(The proposed budget will be available for public viewing on the city’s website Wednesday)
Coupled with the budget presentation was a resolution adopted later at the city council meeting that opposed legislation that weakens municipalities in the state. Proposed legislation in Raleigh could mean a $1 million reduction in revenue for Roanoke Rapids if all the proposals pass in the General Assembly, Scherer told council at its work session last week.
Scherer likened the current economic outlook to the movie Groundhog Day. “It is the same story over and over again,” he said, explaining there are stagnate revenue streams but increasing costs. “The short-term answers for this have been frozen positions, delayed equipment replacement and very little infrastructure improvements citywide.”
Even with recent economic development announcements in the county and the possibility that Dunham’s Sports will occupy the former Farm Fresh site off Premier Boulevard, he said, “There is a lag time between announcements and any actual increase in revenues related to investment.”
The state’s slow economic recovery and the legislature’s tax reform efforts, “Make it prudent that we focus this budget on maintaining current levels of service while considering a few investments in capital resources.”
The proposed general fund allocations are as follows:
• 28.03 percent for public works
• 23.30 percent for police
• 19.52 percent for general government
• 15.06 for fire
• 11.36 percent for parks and recreation
• 2.74 percent for planning and development
The total fund summary for those categories is $12,262,193, according to the proposed budget.
The projected tax revenue for the city is expected to be $6,784,871, a revenue source that makes up 45.88 percent of the budget.
With the outcome of state legislation unsure, Scherer is projecting no change for sales tax revenues as well as no change in solid waste fees.
The proposed budget includes a $624,153 appropriation to the undesignated fund balance account to use installment financing to buy seven new police vehicles and a knuckle boom truck.
The budget includes the lease payment of $170,000 from the Royal Palace Theatre as well as $13,550 from the $2 per ticket fee.
Scherer also plans to continue the $250 Christmas bonus for fulltime and regular part-time employees as well as the $25 Thanksgiving gift card incentive.
It keeps the longevity plan in place in lieu of a true merit pay system, something that may be considered when the financial situation in the city betters, he said.
Meanwhile, the city’s debt service totals $2,244,554.70. Annual debt service payments for the general fund are $446,096.70. Debt service payment for the theater is budgeted at $1,798,458.
City officials are looking at refinancing the loans for the second fire station and the Neighborhood Resource Center. Refinancing would cut the payoffs roughly in half, Scherer said.
Mayor Emery Doughtie said following the meeting he was pleased with the budget. “We’re going to have to dig into it. This is the first time we’re actively seeing it.”
Doughtie said he likes the refinancing effort. “Cutting the time off the debt is a half-million dollar savings. Certainly we’d be able to do more.”
