Mount Olive Town Board approves $6 million budget
By Steve Herring
Published in News on June 13, 2016 1:46 PM
MOUNT OLIVE -- A $26,000 allocation to study drainage problems in the southern section of Mount Olive was the only item from the town's 2016-17 budget discussed during a Monday night, June 6, public hearing.
But the discussion was by the town board. No one from the public commented during the 10-minute public hearing.
Following the discussion the board unanimously approved the $6,889,426 budget that retains the current tax rate of 64 cents per $100 worth of property value.
That rate is expected to generate $214,810,054 in tax revenues based on an estimated collection rate of 95 percent.
By fund the budget includes: general fund, $3,740,224; water and sewer fund, $2,735,056; Powell Bill fund, $148,059; airport fund, $161,237; and Waylin fire fund, $104,850.
The budget includes an across-the-board 2.5 percent pay increase for all employees.
It also includes a fee of $16.60 for town residents who use the rollout container service.
The new budget continues a built-in 2.5 percent increase in water and sewer rates in July and again in January. The rates have increased in both of those months since first approved by the board in 2008.
The increase is in response to concerns by the Local Government Commission that the town's water and sewer rates are not adequate to cover operating expense and debt service.
The commission has indicated the two annual increases would address those concerns.
Even with the increases, the town still has one of the lowest water rates in the state and the sewer rates are at or below the statewide median, Town Manager Charles Brown said.
It is possible that the July rate increase might be the last one needed, he said.
The budget reflects a fund balance of $2,419,437 as of June 30, 2015, an increase of $147,739 over the previous year. The draft shows an unrestricted fund balance of $1,301,816.
That is a marked change from a decade ago when the fund balance was just $2,312.
Commissioner Jerry Harper said he had spoken to several residents who had questions about the budget.
He, Commissioner Joe Scott and Mayor Ray McDonald Sr. said people do not understand some aspects of the budget including that grant funds must be used for specific projects.
The board agreed to have Brown set up a meeting to allow residents to ask questions about the budget.
A copy of the budget is available for public inspection at town hall and will be posted on the town's website, www.townofmountolivenc.org.