City leaders in budget retreat this weekend

By Jon Mayhew
Lincolnton
City of Lincolnton leaders will be spending an otherwise beautiful weekend indoors as final preparations are underway to formulate the city's 2010-11 fiscal year budget.

Starting this (Friday) morning, city department heads, Mayor John Gilleland and city manager Jeff Emory will meet to go over presentations that will officially be made to the Lincolnton City Council Saturday. A wrap-up will take place Sunday.

"The budget process takes about six months," said city manager Jeff Emory from his city hall office on Thursday. "What we do in January is direct all the department heads to prepare a prospective budget and then receive the reports in February."

The budget workshop was postponed in February due to scheduling conflicts of some of the city councilmen.

Department heads will spend this weekend asking for their respective "big ticket items."

For example, city police chief Rodney Jordan may ask for additional cruisers. Fire chief Mike Lee, meantime, may ask for a replacement chemical truck for the Lincolnton Fire Department.

For Emory, the retreat will give him direction by the Council letting him know what they would like to fund.

"It helps me get a feel for what direction to go in putting the budget together," said Emory.

Emory said things are so tight for the current -- and possibly future -- city budget, he is monitoring revenues almost everyday. The revenues, according to Emory, are still down.

His two biggest concerns are the interest earned and sales tax revenues. Emory said he's also taking a close look at water/sewer sales.

The Carolina Scoop asked about the tax rate, currently set at 56 cents per $100 valuation, and if the tax rate would be increased in the upcoming budget, if water/sewer and electric rates would be increased and if the 150-plus city employees would receive a raise in the upcoming budget year.

"It's too early to tell right now," said Emory.

Currently, the city is operating under a $26.6 million budget, which is a 2.5 percent increase over the 2008-09 fiscal year budget. City council has to make any changes to Emory's budget and have it approved by the end of the fiscal year, which is June 30, 2010. The budget must be ready to take effect by July 1, 2010, per state law.

Emory said the budget is hard to compare year to year because one project may inflate it.

He also said the first budget worksession will be held sometime in April.

While things may be tight, Emory said the City of Lincolnton is in sound financial shape. Emory said the money in the city's general fund, also known as money in the bank, is 40 percent.

"We had to use three percent of our savings last year," said Emory. "Revenues are down and the economy is (still) bad."

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