Laurinburg City Council OKs $40M spending plan

LAURINBURG — The Laurinburg City Council unanimously approved a $40 million budget that consists of another uptick in water and sewer rates.

The vote was made after a Tuesday public hearing on the matter, where no one spoke for or against the budget.

The 2024-25 fiscal year spending plan — made up of the general fund, electric fund, water and sewer fund and solid waste fund — totals $40,661,893, a nearly $700,000 jump from the current year’s budget of $39,983,823.

City Manager Charles Nichols told the council that about $1.2 million in fund balance monies was used to balance three of the four funds in the budget; about $594,000 for General Fund, $376,000 for Electric, and $233,000 for Solid Waste. Councilman Andrew Williamson noted that the fund is “seldom used” traditionally despite being included in the budget to balance.

“When the dust settles and the audit’s done, we normally are about flat or increase [the Fund Balance],” Nichols agreed.

Due to a rate restructure, Laurinburg customers will see another hike on their water and sewer bills for the second year in a row. Nichols said the average customer will see about $7.70 increase on their bill, which reflects $4.20 on the waterside and $3.41 on the sewer. Last year the water and sewer rates increased by 25%, which was still significantly lower than the state average.

The restructure comes from the need to meet the industry standard to base water and sewer on usage versus line or tap size, the city manager said.

“It’s a lot easier to read and more simplified than what we had before,” Nichols said.

Following a presentation of the results of a Water and Sewer Asset, Inventory and Assessment study conducted by Raftelis in May, city council members learned the increase is also needed to target reserve funds and debt service on upcoming large capital projects as well as projected increases in operational and maintenance costs.

What will remain the same is the property tax rate.

“This is the 13th consecutive year that city council has been able to keep that tax rate at an extremely low 40% … This is a testament to council,” Nichols said.

Budget crafters were able to carve out a 5% cost of living adjustment and a continued 5% salary contribution to 401k for city employees.

“Our most valuable highlights are our employees,” Nichols said.

The budget also reflects the city’s “succession planning.”

“There are three new positions in public works and then admin and finance …That’s to address the people that we already know are retiring, the people that are retiring in the in the next two to three years, to try and get people in key positions up under these key spots to have as much succession planning and overlap as we can,” said the city manager.

The budget, which can be viewed at the City of Laurinburg’s website and at City Hall, goes into effect on July 1.

Tomeka Sinclair is the editor of The Laurinburg Exchange and can be reached at [email protected] or 910-416-5865.