FEE
INCREASES ON THE WAY?
By Jon Mayhew
LINCOLNTON – City residents
may have to pay higher fees and taxes if
the finance director’s budget
presentation is any indication of
what’s to come financially for the
City of Lincolnton.
Finance director Georgetta Williams told
city leaders Friday due to the economy,
city manager Jeff Emory might consider
some changes in certain fee structures.
“Expenses are up and revenues are
declining,” said Williams.
“It’s going to be harder to
close the gap this year. Mr. Emory may
have to recommend (to council) rate
increases.”
Specifically, Williams pointed to
deposits for electric service and tap
fees. She said there hasn’t been an
increase in electric deposits in 16
years.
“The biggest complaint among new
utility customers is that deposits are
based on a two month average of an
electric bill at an address,” said
Williams. “I suggest we standardize
the electric deposit.”
Williams also said there hasn’t been
an increase in a water/sewer tap fee in
two decades. Currently, customers wanting
to tap on to water/sewer would have to
pay upwards of a $700 deposit according
to city officials.
City manager Jeff Emory said if faced
with building a house in the city or
county based on tap fees, the city is a
better deal.
“If I’m building a house here
in Lincolnton, it’s currently $700
with city water and sewer,” said
Emory. “In the county, it’s
more than $14,000 in tap fees.”
Part of the reason for the suggestion to
increase fees is based on the business
and industry that have closed down due to
the economy.
Case in point, the closing of Cochran
Furniture and Bosch Tool Company last
November, and the downsizing and
demolition of Belding-Hausman.
According to Williams, the city lost
$20,000 in revenue in 2008.
“If the Ingles grocery store is
located on the property, it would only
generate $2,700 in water/sewer
revenues,” said Williams.
Williams added the city’s investment
income has taken a hit during the
recession as well, with declining
interest rates an additional factor.
“Where interest was once around five
percent, it’s now two percent,”
said Williams.
Businesses and industries in Lincolnton
are having to bear the burden of the
city’s revenues, according to
Williams.
“While 46 percent of water income
comes from businesses and industry, sewer
revenues from the same area are more than
50 percent,” said Williams.
“About 14 percent of the electric
revenues also come from business and
industry.”
Despite the bleak financial outlook,
mayor David Black remained positive that
the city would weather the recession.
“It’s sad when you have to
furlough law enforcement, for
example,” said Black, referring to
the furlough Lincoln County manager
George Wood started as a budget cut for
the end of February. “That’s
just not right to do that.”
Black said the city employees are
“what drives city government.”
“We’re not going to layoff city
employees or cut services,” assured
the mayor.
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