Roanoke Rapids City Manager Kelly Traynham told the council Tuesday that the city must continue to work on its budget situation going into the next year.
“We have to keep working on this,” she said. “Budgeting needs to occur on a frequent basis.”
Traynham’s comments came before the council unanimously passed the budget, which contains a 4-cent tax increase and takes $789,190 out of the fund balance. “There are some years that are high and low but we have to look at our priorities and what the upcoming years are going to look like to have a sustainable future.”
The city manager believes the city is on the right track. “We’ve had some really great questions raised over the last several weeks. Quite frankly, the costs of operating continue to rise as the costs of living increase. The changes that occur have held tight and we’re trying to do everything that we can to keep costs low while maintaining service levels. The future means considering changes and input that will lead us to a more sustainable future.”
The amount taken from the fund balance is a little more than what was allocated for the current budget, she said, adding that the city hasn’t had to use this year’s allocation. “Due to current revenues and expenditures, we’re coming up on another year where we’re having to allocate fund balance to help balance our budget.”
The city, however, is not under any inquiry or red flag status, she said. “We’re seeing the warning signs and are bringing those to attention and being transparent about that.”
The $20,304,368 budget for the upcoming fiscal year is scaled back some compared to this year’s budget, she said.
It does include a 3 percent cost-of-living increase for full-time employees as well as replacing about 50 computers to allow the city to operate and maintain its current levels of service.
There is one reduction in force included in the budget — a person who was already eligible for retirement.
Opposing view
But the budget for the new fiscal year, which starts July 1, did not please city resident Ephraim Brodsky, who has spoken numerous times before and during the budget process.
“I just want to point out that we currently pay the highest trash rate in the county,” he said during a public comment section of the meeting.
Residents are currently paying $295. “The new budget has it going up to $305. The county pays $223.10 for arguably a better service because they get two bins — a recycling bin as well. We only get one bin so we’re taking $71.90 more and it’s going to be $81.90 more.”
Referring to a resident who spoke during the recent budget public hearing, he said the new plan will make her taxes go up about $15. “If we switch to county trash, that’s going to be a net savings for everybody in that kind of income fold.”
He also criticized department heads that don’t live in the city limits, but in the extraterritorial jurisdiction. “If they don’t see the value in living in the city limits, then why should the rest of us?”
Brodsky said Roanoke Rapids has the 19th highest tax rate in the state and some people are quick to point out Enfield has the highest rate.
But, he said, the property values there are nothing. “A really nice house in Enfield has a property value of about $70,000 so that 92 cents is only generating about $600.”
He called out Mayor Emery Doughtie for “constantly saying” cuts need to be made. “We need to make cuts, but not once is Mayor Doughtie telling us what cuts need to be made. The budget work session last week was a joke. It wasn’t a work session at all. Nothing was discussed. No jobs were cut. Frozen positions were cut. No actual jobs were lost — not one.”
Brodsky accused the council of having their budget discussions behind closed doors. “That’s a problem for me. I want to know where your heads are at. I want to know what the plan is for the future of this city. I want to know if this is a place where I still want to live.”
He encouraged the mayor to speak up. “Be brave like your hero Donald Trump and tell us what needs to be done. Say it in open session — not behind closed doors. Say this is what needs to be cut, this is what we need to do because the city manager follows your direction.”
Finance director’s report
Before the meeting closed, Finance Director Carmen Johnson reported that for May receipts totaled $18,047,000 and expenditures were $17,317,000.
But the city has yet to receive the following revenues:
Its ad valorem tax revenues for May and June
Its motor vehicle taxes for May and June
Its sales and use taxes for April through June
Its hold harmless tax for April through June
Its utility franchise tax for June
Its commercial and solid waste fees for June
“We have not used any of the fund balance that was allocated in last year’s budget and I do not anticipate us having to use any of that.”
That money will go back into the fund balance, she said. “In order to have a balanced budget, we do have to reserve a certain amount of money to make sure we can meet our expenses. I’m not saying we will spend that, but saying that we need to have that reserved in case we do need it.”
