The Kinston City Council recently voted unanimously on the budget for the 2013-2014 fiscal year. The fiscal year begins July 1 and the budget will be $97.1 million, which is about $2.2 million less than the current year’s budget.
1. Property Taxes
The city’s property tax rate will stay at 66 cents per $100 for the 2013-14 year. Kinston hasn’t had an increase since 2008 when the rate jumped from 60 cents per $100 to the current cost.
2. Electric Rates
For the fourth consecutive fiscal year, an electric rate increase wasn’t proposed in the budget. There was a 1 percent decrease in electric usage during the current fiscal year. As a result, for the first time in Kinston history, at least 22 employees weren’t budgeted for the full year. Only 20 were budgeted in 2012-13.
3. Water rates
Water rates will increase by 5 percent this year, after 7 percent increases in 2012 and 2013 along with a 20 percent rise in 2011. The water increases were recommended by the 2010 Raftellis report to meet utility revenue targets demanded by bondholders. This will be the final year of rate increases through the Raftellis report.
4. City employees
There were no jobs created or lost in the City of Kinston. All employees in that workforce will receive a 1.5 percent raise as a cost-of-living adjustment. Employee benefits have been reduced in order to deal with the rise of insurance but an increased deductible for those with PPO insurance has been granted.
5. Fund balance
To help close the gap between revenues and costs, City Manager Tony Sears will be using $300,000 from the city’s fund balance and a $300,000 loan from the fund balance of the general fund. The money will be used toward electric and health care.
6. Other revenue sources
There wasn’t much of a change revenue-wise between last year and the current one. The general fund went from $21.4 million in 2012 to $21.8 million now. Projected revenue increases will come from building permit fees, police court fees, beer and wine, weed cutting fees and more.
7. Wastewater rates
Wastewater rates will go up another 5 percent this year due to the Raftellis report. This is the final year of increases due to the report and will mark the third consecutive year of 5 percent increases. The rate rose 15 percent in 2011.
8. Organizational support
City support of community organizations will be relatively unchanged next year. While there were additional funds given to the public library ($193,810 from $190,000 last year), the Arts Council ($25,000), Pride of Kinston ($105,800) and SAFE in Lenoir County ($9,500) will operate on the same amounts from the previous fiscal budget.
9. Capital Outlays
The city has asked for $400,000 in order to purchase new radios for departments who communicate with 911 as a mandatory system upgrade. Overall, the budget asked for $2.82 million for capital outlays compared to $3.59 million last year. Capital improvements will be deferred this fiscal year in order to save money.
Junious Smith III can be reached at 252-559-1077 or at Junious.Smith@Kinston.com.