Nine ways La Grange will use your money

The La Grange Town Council unanimously voted last week in a special session to adopt a $7.6 million budget — $2 million less than the current budget — for the town’s general fund and its utility services for the 2011-2012 fiscal year, which begins July 1. The commissioners made two amendments to the initial budget presented to them by La Grange Town Manager John Craft. They added $8,000 for the purchase of a new lawn mower and increased the rate the Public Works Department charges to mow lots to $50 an hour. For more information on viewing a copy of the budget, call the La Grange Town Hall at 252-566-3186.

After no cost-of-living increase for town employees last year, the council approved a 2.5 percent cost-of-living increase this year. Costs to cover the salary and benefits of retirees and town administrators' saw a slight increase in this year’s budget. The budget includes no new positions. Staffing levels remain at what the town council calls minimal operational levels — 19 full time and two part-time employees.

Rising health insurance costs from the town’s provider last year — the N.C. League of Municipalities — for both employees and retirees forced the town to switch to a higher deductible plan with Blue Cross Blue Shield. A health savings account will be provided by the town to its employees to keep deductibles at their current levels. Flexible spending accounts will be made available to employees as soon as possible to help reduce health care costs.

The town’s property tax rate will remain at 45 cents per $100 of valuation. The tax base remains relatively flat due to the recession. No appropriation was made from the fund balance to balance the general fund budget. Sales tax revenues continue to be considerably lower than in previous years and the town anticipates another significant reduction in beer and wine tax, a portion of which was withheld by the state last fiscal year due to its budget woes. Close to 50 percent of the town’s revenues in the general fund budget come from property and sales taxes.

Money allocated by the town to pay the Lenoir County Sheriff’s Office for its coverage of La Grange rose from $22,000 last year to $32,000 this year due to rising fuel costs. A $3,000 contingency for major unanticipated repairs for police vehicles or overruns on fuel expenses were included in the budget. There are no expenditures in this budget for replacement of police vehicles. It is anticipated that two vehicles will be replaced next fiscal year.

Capital outlay plans include only the purchase of a new $35,000 dump truck, two riding mowers, string trimmers and an edger. Most of the equipment will be used to maintain Fairview Cemetery. Cemetery lot fees for out of the town customers increased to $875 for single plots and $3,500 for four-grave plots. Cemetery opening and closing fees increased to $500 from $450.

The council appropriated $8,000 to the budget to continue the demolition of substandard or unsafe buildings and houses in La Grange. A slight increase was also made in expenditures to pay for continuing education programs for the town’s building inspector, Heith Harrison. Harrison must obtain four Level II inspection certificates this year. Building permit fees did not increase under this budget.

There are no rate increases for electricity. Power bill revenues continue to be at lower levels than in preceding years. Expenditures within the sanitation department are higher. Debt service and equipment maintenance costs make up a large percentage of the fund. Landfill fees increased by $1 per month.

Water rates will increase $1.25 a month under this budget. La Grange enters its fourth year of a 10-year contract to purchase water from the Town of Farmville. Next year, the town anticipates purchasing 182.5 million gallons of water from Farmville at a rate of $2.19 per 1,000 gallons for a grand total of $399,675 for 500,000 gallons per day.

Sewer rates will climb $1 a month. The town budgeted $46,000 for debt service on water meters it purchased two years ago. The town is spreading the costs over five years. The town will also spend $16,000 this year to replace another mixer at the waste water treatment plant.