Town's proposed budget includes tax and fee increases

The Town of Sparta's proposed budget for the upcoming fiscal year includes increases in both taxes and fees, including a one-cent tax increase for town citizens, a 3 percent increase in water and sewer rates, and a 50-cent monthly increase for garbage collection.

Presenting his proposal to the Town Council May 6, Edwards noted while he is recommending increases in areas of the budget, the overall proposed amount, $2,057,662, is actually a $50,544 decrease as compared to the current year's budget of $2,108,206.

Addressing the request for increases, the .27 cent tax rate per $100 of valuation is "necessary to insure that the town will continue to meet all of its financial obligations and to maintain a sufficient fund balance to adequately meet cash flow requirements and emergency situations."

Edwards spoke briefly of reasoning behind a proposed 3 percent water and sewer rate increase. "The increase and water and sewer rates is necessary so that our Water and Sewer Enterprise Fund can operate on a ‘break-even' basis," stated Edwards. "It is required that utility and enterprise funds be self-supporting. In recent years, the expenses of operating the water distribution system have increased and it is anticipated that we will continue to experience higher operational cost, as we must comply with increasing state regulations regarding treatment of water and costs of maintaining an aging infrastructure system. During this past year, we have experienced increased fuel costs and higher costs for materials, chemical and pipe. These increased costs of operations must be covered in our rate structure."

Edwards also recommended that the fee for town garbage collection be increased from $6 to $6.50 a month for residential pickup.

One of the main budget items mentioned in a summary is a $40,000 installment payment for the purchase of the Sparta Town Hall and maintenance of the yard. In addition, special appropriations are being requested for the Sparta-Alleghany Volunteer Fire Department, the Rescue Squad, the Chamber, the Main Street program and Alleghany Planning. A "modest increase" is being sought for the Alleghany Wellness Center, Alleghany Memorial Hospital and the Alleghany County Public Library. In terms of the appropriation requests between the 2007-08 and 2008-09 fiscal years, there is a $15,000 ($15,438) difference.

 

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