No decisions made as mayor appeals to town board to look at budget cuts, lower proposed property tax increase

Mount Olive Mayor Kenny Talton Thursday night appealed to the town board to backtrack on a proposed 7-cent property tax hike. He encouraged looking at budget cuts, possibly including all or part of a video surveillance system, the proposed 2.5 percent across-the-board pay increase for town employees and the town’s contributions to other agencies such as the Chamber of Commerce.

It was also suggested that one way to lighten the tax hike could be to increase the monthly charge for garbage containers from $18 to $19 per container.

Such an increase could generate about $54,000 annually.

While commissioners appeared receptive to considering a more-incremental tax hike, and the possible garbage container fee increase, they were less so when it came to the camera system, salary increase and contributions.

No compromise was reached during the 90-minute budget workshop, however, the board agreed to continue deliberations during another session set for Wednesday, June 7.

The workshop will start at 6 p.m. in the town hall conference room, 114 E. James St. It is open to the public, but public comments will not be taken.

The public will have the opportunity to comment and ask questions about the proposed budget during a June 13 public hearing to be held during the board’s monthly meeting. The meeting will start at 7 p.m. in the courtroom, 114 E. James St.

As it stands now, the proposed $4.7 million general fund budget includes a property tax increase of 7 cents per $100 of property value. That hike, if approved, would add $191,100 in revenues to town coffers and would equate to an additional $35 on the tax bill for a $50,000 house or an additional $70 on a $100,000 house.

The town’s budget proposal also includes a 2.5 percent across-the-board pay increase for all eligible town employees and $70,000 for a new video camera surveillance system.

And while not part of the proposal, commissioners have discussed increasing water/sewer rates — something that can be done at anytime during the year.

There was some good news during the workshop — town Finance Director Jamie Butler announced that the town’s health care insurance would not be as hefty as first thought.

Initially, the town had been looking at a 35 percent increase in the United Health insurance that it provides for employees.

Blue Cross and Blue Shield provided a better package while providing a reduction, Butler said.

Under United Health, the town currently pays $671 per employee per month, she said. Under Blue Cross Blue Shield, it will be $505 per employee per month.

However, haggling over the proposed tax increase consumed the bulk of the meeting.

Talton reiterated concerns he first mentioned during the board’s May 9 monthly session about the tax increase and how it could be affected when Wayne County conducts its property revaluation next year.

He renewed his support for a more incremental approach to increasing town property taxes.

Should a tax increase make it through the budget process, it would be the second property tax rate hike in as many years.

When the board approved the current budget last year, the property tax rate was bumped from 64 cents to 67 cents per $100 in property valuation. The 7-cent increase would make the rate 74 cents per $100 of property value.

“It doesn’t sound like much, but when you look over the years at what we have been doing lately it adds up,” Talton said.

Commissioner Barbara Kornegay said if the town raised the tax rate by 3 cents — one of the other rates that had been considered — there would not really be much of a possibility of doing any road work.

The 3-cent increase would generate only about $81,900, she said, adding that amount would not spread around very much.

“You might could get closer to doing the salary portion of it (budget),” Butler said. “But the way that salaries then hinge on 401Ks, retirement, and then all of those ancillary (costs) then no.”

If the town does a 3-cent increase, Kornegay said that in her opinion it would not work for town employees.

Employees did receive a “nice raise” in the current budget since the town received federal rescue money last year that helped to fill other gaps, she said.

That, she added, allowed the town to utilize the increased tax revenues for salaries.

“So I understand the reluctance to raise it again, but we do have a shortage on staffing, and we are struggling to keep enough police on the streets,” she said. “We can’t even put three guys at night out there.

“We really have to think about this hard. Our citizens also expect us to offer them the services that a town needs to provide.”

Kornegay said research needs to be done on the amount of revenue that would be generated by a possible $1-per-month increase in the garbage container fee.

“I am just not ready to give up on a little bit of a raise for our people if we can find a way to get it for them,” she added.

The employees need the raise, said Commissioner Delreese Simmons, who supports the tax increase.

“Ain’t no way you are going to put me on a trash truck for $12 or $13 an hour,” Simmons said. “For anybody to get on that trash truck for $12 or $13 an hour, no.

“There ain’t anybody going to do it. Ain’t nobody going to be out there picking up limbs for no $13 an hour, so why do we want them to do it?”

Talton suggested the town needed to adjust its hiring salary schedule to help recruit someone to do that work.

Butler reminded the board that it is more than a matter of increasing a salary because of items such as insurance, 401K, Social Security and other ancillary costs.

Unfortunately, Mount Olive always has been a training ground for other municipalities and counties, Talton countered.

“Just remember that people are struggling to pay bills,” Talton said. “They are struggling at the grocery store, the high prices there. They can’t even buy new cars. People are holding onto their cars right now, making the repairs because to go out and borrow money to buy a car is so doggone expensive.

“Gas is killing us. I think people knew… But I think now they are wanting some relief in any shape, manner or form. And again, you keep pounding it on.”

Talton said he thinks that a 2-cent or 3-cent increase would be more palatable to taxpayers

The mayor also questioned the possibility of reducing the line item for contributions to other agencies to help lower the needed tax rate.

The $19,500 total in that line item has not increased from years past, Butler explained.

Talton questioned as well the budgeted $238,000 for fleet maintenance.

Kornegay argued that it is a good deal for the town and saves it from having to buy new vehicles.

Talton’s suggestion that the video camera surveillance system be eliminated was a no-starter as well — although the possibility of a phase-in approach was not totally rejected.

Residents have made it clear they want the video camera system to help combat crime, Kornegay said.

“I tell you, this moratorium (on new sewer hookups) has really got us in a pinch,” Talton lamented. “This moratorium negates the opportunity to increase our tax base which increases our revenues in our coffers here.

“Hence the concern for taxes and rising utility rates because we can’t grow. We cannot grow, and it hurts. We are suffering for it. We have just got to get out from under this sewer moratorium quick.”

People are knocking at the door and want to come into town, which would really help increase revenue over the years, he added.

“But we are not able to do that,” he said. “We are just in a bad situation.”

A copy of the proposed budget for the fiscal year beginning July 1, 2023 and ending June 30, 2024 is on file in the offices of Town Clerk Sherry Davis and Town Manager Jammie Royall and on the town’s website, www.townofmountolivenc.org.

The budget proposal is available for public inspection during normal business hours until the budget ordinance is adopted.

State law requires the adoption of a balanced budget before July 1, the start of the town’s new budget year.