City Council may choose to raise tax rate

Based on a survey at the end of Monday night's budget work session, a majority of the Lenoir City Council appears willing to increase the city's property tax rate for the first time in three years.

During the meeting in the former council chambers at Lenoir City Hall, the council began the process of analyzing City Manager Lane Bailey's recommended budget for the 2008-09 fiscal year. The $25.94 million plan includes $17.07 million in general fund spending and calls for a 5-cent increase (9.26 percent) in the property tax rate to 59 cents per $100 valuation.

When Lenoir Mayor David Barlow polled the seven council members, Lewis Price was the lone representative to endorse the plan as is. Meanwhile, Councilman T.J. Rohr said he is opposed to any tax rate hike. Three members - Todd Perdue, David Stevens and Dr. Marjorie Strawn - expressed a willingness to consider a tax boost, while Mayor Pro Tem Joe Gibbons and Councilman Merlin Perry said they were leaning against a tax increase.

The council has not adopted a tax increase since it left the tax rate for the 2005-06 budget year unchanged after a property revaluation the year before. In 2004, the board adopted a 4-cent tax hike.

Bailey said additional revenue is needed to devote $125,000 toward the demolition of approximately 15 dilapidated structures. In his proposal, Bailey has requested the fund become a recurring item in future budgets.

He also is suggesting a 5-percent overall increase in city salaries - with departmental allocations to be determined at a later date - based on preliminary results of a pay and classification study that shows Lenoir's municipal wages to be below comparably-sized cities.

For a $100,000 home, which currently is assessed $540 in city taxes, each 1-cent adjustment to the tax rate means an additional $10 in annual property taxes.

Bailey also presented a plan to use $789,450 in one-time additional tax receipts from Google. The extra cash is due to the company delaying the starting date of its 30-year tax incentives, which includes 100-percent reimbursement for business property taxes and 80-percent rebates on real estate property taxes.

The proposal calls for spending $140,000 each to purchase a sanitation truck and one leaf collection vehicle. Another $125,000 has been set aside for street resurfacing. Other items include two mowers for grounds maintenance, bathroom renovations at the Mulberry Recreation and Martin Luther King centers, and improvements for the former Lenoir High School auditorium.

The council is scheduled to continue work on the budget Friday at 8:30 a.m. on the third floor of Lenoir City Hall. Additional work on the spending plan could carry over to the Committee of the Whole meeting set for Tuesday, May 27.

By North Carolina law, the council must have a budget in place prior to the beginning of the new fiscal year July 1.

Bridge snag

untangled

After expressing frustration with the delays in getting approval to put the Old North Road bridge project out for bid Monday night, Bailey said Tuesday that final approval from the North Carolina Department of Transportation (NCDOT) could be in hand by the end of the week.

The bridge was demolished after being damaged by two tropical storms in 2004, and efforts to replace it have been stymied by varying levels of red tape.

Lenoir first sought to replace the bridge by applying for Federal Emergency Management Agency funding only to be turned down. The city later reached an accord with North Carolina Emergency Management and the NCDOT to share in the construction costs.

Bailey said he hopes to have the bridge up for bid in June or July, with final construction completed by the end of the year or in early 2009. He added that the NCDOT has pushed the project ahead of others.

In a final twist, Bailey said the city received notice denying its final FEMA appeal Tuesday - two years after Lenoir had made its review request.