Henderson faces challenges in upcoming budget year


Reporter – Leigh Hester – Balancing the City of Henderson Budget in any year is tricky business. By law, localities must operate within a balanced budget, and within the confines of an ongoing recession and the costs of fuels and insurance for City employees, this year is especially difficult.

Everyone is reeling from the recession that has caused the cost of unleaded gasoline to rise a full dollar over a year ago this time. Additionally, the cost of health insurance for Henderson’s employees has increased by 30% this year alone as the tough winter increased the number of doctor’s visits and other insurance utilization over the past several months.

The total amount estimated by City Manager Ray Griffin needed to run essential City services this year is just under $15 million.

The current year property tax is the largest single revenue source for the City general fund, and makes up 35% of the City’s proposed balanced budget. The current version of the budget will add $.01 to the property tax rate. One penny added to the property tax rate yields the City $85,000. Total current property tax revenues for the year are estimated at $5.516 million.

A second revenue source adjustable by the City is the Sanitation Fee. This year will be the first full year where the Waste Industries will be handling curbside trash service. Each fee increase of $1.00 creates about $60,000 in revenue. And increase of $2.00 is expected to be added to the Sanitation Fee.

Water and Sewer funds are expected to rise not only this year by 3% and 5%, respectively, but to also rise annually for the indefinite future to provide for capital reserve for future expansions of (and debt service to) plant expansions and renovations. The plant renovation and updating projects are projected at $16.6 million. Water revenues are estimated to be just under $5.4 million for the upcoming fiscal year.

Sales taxes, another major revenue stream for the City, fell this year to the lowest levels seen since 2006. The City cannot change or control the rate of sales taxes, and estimates revenue of $2.110 million. According to City reports, hundreds of thousands of dollars once available to the City to provide essential services have been “lost” due to the decreasing sales tax revenue.

Various other small income sources fill the monetary gap, but it looks as though there will be annual rate increases until either the recession ends or the City cuts some of the “essential resources” City citizens have come to expect.

A full copy of the City Budget is available at the City Manager’s office for concerned Citizens.

With at least weekly meetings in Henderson’s City Hall, continuing discussion among council members will alter the details above.  To hear more and voice your opinion, please attend the budget work sessions as can be viewed on the City of Henderson’s calendar on their website ci.henderson.nc.us/calendar