During a previously revised agenda in which two versions of a contract between the NC Community Development Initiative, Inc. (Abdul Rasheed) and the City of Henderson were knocked off the slate, the council voted 7-0 with member Bernard Alston absent to approve a budget for fiscal 2008-2009.
The budget includes a 1 1/2 cent increase in the city property levy.
Interim City Manager Ed Wyatt continued to recommend a 2 cent increase to the council; however, he also came to the meeting with a plan to lower the tax hike by 1/2 cent.
Acknowledging the a 1/2 cent on the tax rate comes to approximately $45,000, Wyatt recommended that the difference be taken from the $91,000 contingency already in the budget.
Wyatt characterized the move as “not terribly dicey”.
He said that the budget maneuver would need to be carefully monitored by the new city manager. Wyatt indicated that unspent funds could be conserved through temporary [personnel] freezes if necessary.
The original proposed budget called for a four cent hike on the “revenue-neutral” tax rate of 55 cents per hundred dollars of valuation. 55 cents is considered revenue-neutral in light of the county’s 2008 revaluation.
Member Garry Daeke inquired as the final city contribution to Emergency 911, a joint operation of the city and Vance County. Wyatt indicated that it remained at 13.1%, saying that he would like to take “a knee-jerk reaction” [to the steep increase in the budget], be that he believed it would set back city/county relations.
Referring to the reduction in the 911 budget, Daeke said, “I don’t know why that soothes me a little bit”.
Council member Michael Inscoe told members and the audience that he is an “advocate” for the city’s employees and reminded all present that city personnel would receive a 3% cost of living adjustment as well as an average 2.5% merit increase.