Mayodan reveals trimmed-down budget

Mayodan Town Manager Debra Cardwell presented the town council with what she described as a “hold-the-line” budget for 2009-2010 at Monday evening’s meeting.

“It’s a very lean budget for next year,” Cardwell said. “It’s basically a purely operational budget with no increases and no capital expenditures.”
Next year’s proposed $4.8 million budget is nearly $387,000 under the current budget. Cardwell said the decreases are due to a cooperative effort from town staff.

“Every department head worked hard to cut as much as possible to make sure we hold the line on expenses or decrease where possible,” she said.

The new budget holds the tax rate at the current figure of 58 cents per $100 of assessed value and provides for no increases in water and sewer rates or town fees. The proposed spending package also allows for no merit or cost-of-living increases for staff salaries.

The total $4.8 million budget recommendation includes $2,311,476 for general fund, $1,616,133 and $952,267 in capital projects. Cardwell said the water and sewer capital projects would be fully funded by grants.

The budget revenues reflect a slight increase in the town’s real property tax base due to the completion and addition of Lowe’s on N.C. 135. The personal property tax base increased significantly for next year due to the addition of machinery and equipment at General Tobacco on Ayersville Road.

Cardwell said the town also saw significant increases in expenses from a 12-percent rise in health insurance premiums for employees and a 28-percent increase in the yearly workers compensation premiums.

“This was a very challenging budget, but every effort was made to hold the line or reduce expenses in every department,” she said.
Cardwell told council members staff would continue to watch revenues and expenses closely throughout the year and make adjustments as necessary.

The town council decided to hold off its vote on the proposed budget until June 30. Mayor Dwight Lake said the decision was based on waiting for final budget decisions from the county and state. The General Assembly has not fully ruled on the county’s decision to retain the current tax valuations for the coming year.

“It looks good now, but we need to wait to make sure the county is able to keep those rates,” Lake said. “If not, we’ll have to adjust our own rates to keep the budget in balance.”