Inflation a large factor in city budget discussions

Details: Lance Martin; News; 11 April 2023; 1878

As the city begins its discussions for the upcoming fiscal year budget, Roanoke Rapids City Manager Kelly Traynham and Finance Director Carmen Johnson both said today it is currently undetermined how much state revenue the city will be receiving.

They are in the process of applying formulas from information received from the North Carolina League of Municipalities, they said during the first budget work session held at public works.

What is clear is that inflation will have a factor in preparing the fiscal plan for the 2023-24 budget.

Public Works Director Larry Chalker presented a budget which includes a 2.98 percent increase, which he said was based on inflation and the cost of fuel. As presented today, the department’s budget did not include salary figures.

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Aligning with the inflation predictions, Chalker’s budget calls for a residential solid waste fee increase – from $265 to $285 per year.

He is proposing an increase in the cost of debris removal and special collections with the following amounts – $60 per load for a small pickup and $150 per load for a large trailer.

The department is proposing an increase in the cost of pouring headstone foundations at the cemetery – from the current $175 to $200.

Other cemetery fees remain unchanged.

As far as additions to expense line items, Chalker has budgeted an additional $20,000 to account for the landfill tipping fee and a $10,000 increase in the refuse tipping fee, which accounts for what the city collects from alleys.

He put a $5,000 increase for street lights. “We’re anticipating an increase from Dominion,” Chalker said. That would bring that line item to $430,000. As of December the city had spent $194,374.64 on street lights. There is a remaining balance of $230,625.36.

Councilman Wayne Smith questioned why there was no increase in the fee for permits to make utility cuts in city streets. The fee is $400 per cut. “This is one fee we need to do because if we have to go back and repair the stuff that they’re doing we need to charge them more to cut it out.”

No action was immediately taken on that matter but further discussions are most likely expected.

In his capital request Chalker includes the following:

$90,000 for a used wheel loader

$90,000 for a used backhoe

$65,000 for a leaf vacuum

$240,000 for knuckleboom

Chalker noted the cost of a leaf vacuum has increased from $12,000 in 2010 to the current price of $65,000.

One of the backhoes has a rear end issue and one doesn’t have a cab.

He described the capital requests as first line equipment.

Chalker said he plans to request a lease on the knuckle boom like the city is currently doing with its trash trucks.

Chalker said there is a savings in the lease. “It’s made a definite difference. There are some line items we’ve decreased because of those savings. Once we look at the budget in a year there’s probably going to be more decreases in the budget because they’re still under warranty. All we’re doing is putting gas in them and we’re changing the oil.”

Said Johnson: “They’re going to pay for themselves.”

Said Chalker: “We hope to be able to gloat a little bit about it. If we come to you in 18 months or two years and say ‘we drove this truck for free’ that’s my goal.”

TAGS: halifaxcountynews, roanokerapidsnews, roanokerapidscitycouncil, roanokerapidspublicworksdepartment, roanokerapids2023/24budget

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