There’s good news and bad news.
Kinston residents may not have a property tax or electric rate increase for the 2013-2014 fiscal year, but they will likely see a 5 percent increase in water and sewer rates, City Manager Tony Sears said.
There is a $2 per utility bill flat rate proposed, but it has not been added to the draft budget yet.
No increased rates are expected for garbage pick-up or storm water service. There are no staff reductions for current employees, and full-time employees can anticipate a possible $500 bonus.
City Council members received the proposed budget on May 17 and discussed items in the general fund on Monday night. The board recessed until Wednesday when they discussed the department funds at an open meeting.
“There’s no real increase in revenues,” Sears said, “which makes that side of the equation really easy.”
Department heads were asked to keep their requests the same as this year’s budget figures.
Several areas of expenditures will be affected by external factors, including employee insurance, a required increase of the city contribution to law enforcement retirement, countywide purchase of a digital emergency radio system and increased gas prices.
Other expenses are based on need, such as street paving, public safety and $118,000 worth of corrections that were made in the department budgets because of a deficit that turned up in the last audit.
The distribution supply line item in the electric fund was cut by $91,000. The line item pays for supplies, such as transformers, poles and underground equipment, Kinston Public Works Director Rhonda Barwick said.
“That cut is very important to the electric fund,” she said in a telephone interview.
To compare, this year’s distribution supply was budgeted for $365,000. As of Wednesday, the city has spent $287,772, she said.
Councilman Joe Tyson said he is most concerned about budgeting for services.
“The people paying the taxes demand certain things,” he said, “and those things are what I prioritize.”
He said he was referring to services such as trash collection, water and electricity.
Barwick told the board this is the first year the salaries are not fully funded. The salaries will only affect two vacant positions, she said later.
The current employee insurance with Blue Cross Blue Shield will be increasing by 32 percent. However, Sears said he has looked at another BCBS option that will increase this year’s rate by 26 percent.
The lower rate plan will have a deductible increase from $1,000 to $1,750 for employees with a PPO — two-thirds of the employees currently are under the PPO plan. The high deductible plan will see an increase from $2,000 to $2,400 for the deductible.
The benefits will stay the same, and the switch will save the city about $150,000.
Early next year, Sears said the staff will look at other insurance carriers, including considering self-insurance, which is what the county offers.
The police department will be funded at 94 percent, compared with 91 percent this year.
At Monday’s meeting, Mayor B.J. Murphy asked Kinston Department of Public Safety Director Bill Johnson about the level of gang activity.
“Obviously, as you can tell already,” Johnson said, “we’re having some issues, particularly in the gang area, the violent crime area.”
Sears said he increased the police department funding by reducing public safety from about $265,000 to $143,000.
Johnson said when funding is reduced, staff has to be reduced.
“I can tell you,” he said, “the overwhelming motivation factor right now for police officers leaving the organization would be salaries — salaries and benefits.”
Sears said $150,000 requested for public safety vehicles wasn’t included in the draft budget.
The changeover to a digital 911 radio system, likely in 2014, will cost $398,000. The cost will be shared by all emergency response departments. Johnson said his department had purchased some radios last year.
There was some agreement of allocating $30,000 to begin paving the new section of the Maplewood Cemetery. Other capital expenses include paving Briarwood Drive, which has dirt areas and has been patched numerous times.
Barwick wasn’t sure how far $60,000 would go to repair Briarwood.
Margaret Fisher can be reached at 252-559-1082 or Margaret.Fisher@Kinston.com. Follow her on Twitter @MargaretFishr.