Williamston Town Council approved first reading on their 2023-24 budget during a special called meeting held Monday.
Mayor Rockey Burgess made the case that the Town has one of the lowest property tax millage rates, water/sewer rates and garbage fee in the area.
On top of that, the Town has held the line on increasing those rates for a number of years. No one on Council could remember the last time the millage rate of 112 mills had been increased.
Burgess said that the Town has absorbed yearly increases by water supplier Anderson Joint Regional Water Authority (AJRWA) for a number of years. “Williamston is the only entity that voted no” to the AJRWA increases when they were proposed. “We were overruled,” he said.
He pointed out that the increase in water rates has been more that 23 percent over the last five years, a point which he brought up in last year’s budget discussions.
Burgess began discussion on the new budget stating that even with additional revenue coming in during the current year, the Town is facing a deficit of approximately $83,000. He said without cutting personnel or services, there is no way the Town can continue to absorb the increasing expenses.
At a mininum he recommended a 6.08 percent increase in the millage rate which he said would bring in an additional $87,757 in revenue, allowing the Town to break even. “It will fix our problem this year,” he said. But even with that increase, he indicated the Council would again be looking at another tax increase next year.
“As a business guy, when I look at the numbers, they don’t work.” The Mayor said, “We can cut services or lay off employees. We are not top heavy. The folks we have we need. The price of everything has gone up and inflation has not helped.”
Town Clerk Michelle Starnes stated that the Consumer price Index (CPI) index is at 8 percent and “inflation is through the roof.”
Based on those two factors and an increase in population of 1.2 percent, the Town could raise the tax millage rate by a maximum of 9.12 percent, increasing the current millage rate of 112.5 to 122.5. That increase would generate an additional $131,000 in revenue for the Town.
Starnes said that the increase would amount to approximately $50 on a tax bill for a home valued at $200,000.
Mayor Burgess told Council they had a choice of the minimum recommended increase of 6.08 percent to do “exactly what we are doing now” or could go with the 9.12 percent which he said “Will get us through the next five years.”
Burgess recommended the maximum increase. “I would rather do a one time increase than have to come back again next year,” he said.
Burgess also pointed out some expenses the Town has incurred such as the new Pickleball and Basketball Court improvements and a mural on the concrete wall at the Pickleball Courts are funded from the Town’s Hospitality Tax and not from the General Fund.
Hospitality Tax funds can only be spent on items related to tourism and recreation.
Burgess also recommended Council consider a ten percent increase in the garbage fee, raising the current fee of $10 to $11. He pointed out that Williamston provides leaf and limb pickup, a very expensive service to residents. The fee is still less than surrounding municipalities. The $1 increase would generate an additional $23,000 in revenue.
Burgess also recommended a 10 percent increase (across the board) in water rates, less than half needed to keep up with the AJRWA rate increases over the last five years. That increase will add approximately $8 to the average water/sewer bill.
He said Town employees have done necessary work at the Waste Water Treatment Plant to help reduce repair costs but operation costs there have increased by 10 percent.
Liability insurance costs ($20,328), audit cost ($9,550), legal fees ($2,060) and other expenses have also increased.
“Williamston has an extemely low tax rate, which I am proud of,” Mayor Burgess said. “Our employees don’t make a lot of money, but they do have good benefits. There are unfunded mandates in our budget. We have the lowest water/sewer rates around.”
“The last thing I want as a business owner is to go up on my taxes,” he said. “But I don’t mind when I know they are being used wisely.”
Burgess said instead of spending the ARPA money on a variety of things that it could have been used for, the Town has used the COVID funding for required matches for nine different grants including grants for paving, water/sewer line improvements, Mineral Spring Trail expansion and others.
Following more discussion, Council unanimously approved first reading on the new budget with the recommendations the Mayor made.
The new budget includes a 9.12 mill increase on property taxes, a 10 percent increase in water/sewer rates and $1 increase on the garbage fee.
Total revenues and expenses in the 2023-24 budget will amount to $7,509,770, an increase from $6.1 million for the current year.
A public hearing and second reading on the budget will be held at the next meeting of Council on June 5 at 6 p.m.
Council also approved a request made at the last meeting to allow use of Mineral Spring Park on July 8 for an event called “Unity Fest”.
Event organizer Stephen Greer said it will be similar to the Skylatic event he organized last year and will include indie artist music, kiddie rides, Pickleball and Basketball Tournaments, video game zone, food trucks, beer garden, cigar lounge and more.
The approval is with the stipulation the organizer meets insurance requirements and other stipulations set by the Town.
