Mebane’s new city manager unveiled his first budget to the city council Monday night.
Under broad council pressure not to increase the property tax rate in a council election year, city manager Richard J. White, III obliged, presenting a $37.5 million general fund budget, 15.2 percent higher than last year’s budget, without a property tax increase.
The property tax rate will remain at 37 cents per $100 valuation; the property tax, which is expected to generate about $19.3 million during the next fiscal year, represents 59 percent of the revenue in the city’s budget. Each cent on the tax rate equals $505,162, according to White’s calculations.
White also highlighted in his written presentation that the “revenue neutral rate” would be 40 cents per $100 (higher than his recommended level of 37 cents), based on a new revaluation that took place on the Orange County side of the city – and throughout Orange County.
The next largest receipts are from sales tax revenues, $6.9 million.
Most of the town’s general fund budget, 40 percent, is dedicated to public safety (police, $7.0 million, and fire department, $7.8 million); 18 percent for public works ($6.5 million); 18 percent for general government; 9 percent for recreation and parks ($3.2 million); 8 percent for economic and physical development; and 7 percent for debt.
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The manager proposed adding two new employees during the next budget cycle that begins July 1: a human resources analyst and one planning technician. There would also be two reclassifications: one information technology specialist to network services manager; and one fire captain of training to an assistant fire chief. Meanwhile, one vacant accounting position would be eliminated.
White’s outline of personnel changes drew a dissent from councilman Sean Ewing who said he felt that the police department needed two additional officers. Ewing’s comments were the only ones voiced by council members during the budget presentation.
White emphasized that he is also including funding for a staffing study, saying he wanted to avoid “swings” in hiring – the large increases some years and none other years – in favor of a more stable, and predictable, pattern for future staffing of city departments.
White is recommending a 3 percent cost-of-living raise for all city employees; the city will also pay 7.5 percent more for employees’ vision coverage and 7 percent more for employee dental coverage.
On the capital side of the budget, White is including a tiller truck for the fire department (at a cost of $2.7 million); four replacement police vehicles ($353,715); a knuckle boom truck for public works ($285,000). Other expenses include the next phase of development at Cates Farm Park ($350,000); replacing the roof of the library ($270,000); an air quality system at fire station 2 and 3 ($270,000); lighting the basketball court at the Mebane Arts and Community Center ($200,000); and plumbing repairs at the city’s municipal building ($200,000).
White’s budget continues a strategy laid out by the previous city manager, Chris Rollins, that sets aside two percent of the general fund budget, about $1 million, for future capital expenditures – such as an additional fire station, a new police station, and various recreation projects.
It also continues a multi-year commitment of increasing water and sewer rates by 10 percent annually.
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In a separate part of the budget, White recommends a $14.7 million for the city’s utility fund, which is largely financed through those water and sewer rates.
The city council will hold a public hearing on the budget at its next meeting, on June 2, and could adopt the budget – with or without modifications – later during that meeting. Under state law, municipal budgets must be adopted by June 30, in order to go into effect on July 1.
