The city is currently looking at just over $18 million in budget requests from department heads — a figure that won’t equal revenues it expects to receive.

City Manager Kelly Traynham Tuesday gave the council an overview of where the budget process for the upcoming fiscal year stands. “I know we won’t have enough revenue to cover that,” she said, referring to the $18 million in requests. “At the next meeting we will have more detailed information on that as far as a full balanced budget.”

She said the city is in the process of trying to determine what the final numbers on the revenues will be. “The primary issue that we are experiencing is the cost of everything going up. Costs are rising nationwide, worldwide for various factors and reasons. Consumer spending is impacted by inflation. Organizations are offering additional salaries and benefits and other things. We have a tough budget to really look at so more details will be provided but right now our primary focus is to maintain current levels of staffing. Paying for salaries and benefits is our greatest expense.”

She said the city’s greatest revenues are between property taxes and sales taxes and use taxes. “We have made some adjustments in our fee schedules to attempt to bring in additional revenues as well — incremental changes that we’ve done … so it’s not so dramatic on the customers that are paying for the services. We really need to find a way to increase our revenues for the city.”

Traynham, in answering a question posed by Councilman Carl Ferebee, said the next property revaluation is scheduled in 2024. “Right now we’re still based on the levels from a few years ago.”

Last year’s revenues were around $16.5 million, the city manager said. “We do have a gap but that happens every year.”

Traynham said department heads have been conservative in their requests for the upcoming financial plan but costs continue to rise. “We’re doing our best to conserve. We don’t want to have to cut additional services by any means. We’ll be able to at least maintain the current levels of service as we move forward.”

Councilman Wayne Smith said he hoped the city manager was not looking at increasing the proposed budget. “I don’t think the budget ought to be increased and I hope you’re not looking at a tax increase.”

Traynham said she was not proposing a tax increase.

Smith said the city is going to have to maintain a low budget. “I know it’s tough on our department heads but it’s something we need to think about as city council people.”

Traynham said, however, there are costs which are outside the city’s control. “Every year the retirement contributions that are mandated by the state go up incrementally.”

In the prior year the city had to cut many preventive maintenance expenses, she said. “I understand the direction of not raising taxes.”

Smith said the budget needs to be prepared with an understanding of what city residents have to go through. “They’re having the same cost of living as everyone else … They’re struggling.”

Traynham said city employees also feel the economic pinch that Smith discussed. “The last time the city council in a budget approved a cost of living adjustment was the 2017-2018 fiscal year and that was a 4 percent cost of living adjustment.”

In 2022 there was a $3,000 adjustment, she said. “That did represent more than what a typical cost of living adjustment would be.”