Less money available in city budget

Discussion

August 22, 2012

Less money available in city budget

By BRAD KELLAR Herald-Banner Staff The Herald-Banner Wed Aug 22, 2012, 09:34 AM CDT

GREENVILLE — The City of Greenville will have less money available for next year’s budget than was first thought.

During a City Council budget workshop Tuesday, Finance Director Cliff Copeland said he had received a report that morning from GEUS concerning the amount of franchise fees the city’s electric utility system was set to pay in the coming year.

“They weren’t what we anticipated,” Copeland said.

Whereas last year, GEUS notified the city it was sending an additional $450,000 in fees due to the amounts it had collected during the record cold winter and record hot summer of 2011, Copeland said the utility was sending less in franchise fees this year, due to the relatively mild winter and summer months.

“We’ve got about a half-million going in this year’s budget numbers that we have to work on,” Copeland said.

City Manager Steven Alexander said that won’t translate into an increase in the city’s proposed property tax rate.

“We do need to come up with some cuts throughout the budget,” Alexander said.

The $21.3 million budget as proposed would be funded by a property tax rate of 69.9 cents per $100 valuation, which is the same rate as in the current fiscal year and the 2010-2011 fiscal year.

Although the rate is the same it still amounts to a tax increase, as it would be above the effective tax rate of 66.39 cents per $100 valuation, which would raise the same amount of money as in the current fiscal year.

A handful of city employees would be in line for market pay adjustments or civil service step increases.

The budget also includes some changes to the employee health insurance and benefits.

The Council is scheduled to formally set the proposed tax rate during the next regular session on Aug. 28.

The first public hearings on the budget and tax rate are set for Sept. 11, with the second public hearing on the tax rate, if it remains higher than the effective rate, scheduled for Sept. 18.

The Council is currently scheduled to take final votes on the budget and tax rate on Sept. 25.