FARMVILLE — The 2024-25 budget approved by Farmville commissioners on Monday increases spending by 5.3 percent over last year, includes increases in water, sewer and electric rates and maintains the town property tax rate after the countywide revaluation.
The Board of Commissioners gave unanimous approval to the $21 million plan after a public hearing and a pair of workshops. The ad valorem tax rate remains unchanged at 49 cents per $100 valuation. Commissioners initially discussed lowering the rate to 46 cents to help offset a portion of the increase some residents may see in their county tax appraisals.
The county revaluation aimed to set property values at market rates. Values increased 36 percent on average. Setting a revenue-neutral tax rate would have more or less maintained local property taxes. Maintaining the 49-cent rate means most property owners will pay more.
On May 28, Commissioners met for a second budget workshop and discussed concerns raised by citizens regarding the need to address several critical stormwater drainage and paving projects. Commissioners felt it best to keep the ad valorem tax rate the same and earmark the additional revenue to more quickly address the projects and aid in the construction of a new fire department.
By keeping the tax rate at 49 cents, the town will garner an additional $161,575 in revenue, officials said. The additional revenue will be divided into thirds, with $53,858 being earmarked for storm drainage projects, $53,858 for paving projects, and $53,858 to aid with the construction of a new fire department.
Also in the plan, retail water rates are to increase by 3.5 percent to maintain a sustainable rate structure, meet capital project needs, and offset a planned 3.35 percent bulk water rate increase from Greenville Utilities Commission.
Retail sewer rates increase by 5 percent to maintain a sustainable rate structure, meet capital needs, and offset a planned 3.9 percent increase in charges from the town’s wastewater treatment plant operator, Veolia North America.
Retail electric rates are proposed to increase by 1.2 percent. This is based on an electric rate study conducted in November 2022 that documented the need to increase rates to help maintain a sustainable rate structure, address the high cost of supplies and materials, and meet capital projects. This is the third of three proposed increases recommended by the study and will be the last.
The town will pass along an increase of 3.5 percent in its solid waste collection fees to offset a rate increase based on the Consumer Price Index being imposed by GFL Environmental.
The budget does not propose any appropriation of unrestricted or undesignated fund balance in the general, water, sewer or electric funds, which will allow for the town’s reserves to grow and provide for future needs.
A 4 percent market adjustment is included for regular status full and part-time employees. Last year, the town conducted an employee py and regular classification plan update to help bring positions up to their market rate.
The town’s ad valorem tax rate remains unchanged at 49 cents per $100 valuation. Commissioners initially discussed lowering the tax rate to help offset a portion of the increase some residents may see in their county tax appraisals.
The budget also allows for a more aggressive spending of Powell Bill funding to help address paving, drainage and sidewalk needs, officials said. Powell Bill funding comes from the state as part of the gasoline tax and is used for repairing roads and resurfacing town streets, constructing and maintaining curb and gutter, constructing and maintaining sidewalks, and storm drainage work.
The town has a healthy Powell Bill reserve and has been reserving some of its funds for larger projects, officials said.
The town plans to spend $336,500 of Powell Bill funding on storm drainage, street resurfacing, and sidewalk additions and repair. Another $40,000 will be used to purchase an asphalt roller.
Several capital outlay projects are proposed in the budget including the cost of a new police vehicle, improvements to the Town Hall and the Community Center, new computer equipment, fire-proof filing cabinets, and a shade for the Splash Pad.
Following a closed session, the board approved a $5,000 pay increase for Town Manager David Hodgkins following his yearly evaluation. Commissioner Alma Hobbs informed Hodgkins of a job well done and made the motion to approve the increase. It passed with all in favor.
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