City budget passes 4-1

After a vote on Mount Airy’s budget was delayed last month over citizen concerns, the city spending plan for 2024-2025 has been approved — but it wasn’t exactly a slam-dunk.

The Mount Airy Board of Commissioners did so Thursday night in a 4-1 vote, with Commissioner Deborah Cochran the dissenter.

Cochran explained beforehand she thinks it is “magnificent” that the new budget to go into effect on July 1 keeps the property tax rate at 60 cents per $100 of assessed valuation.

And the at-large board member seemed in agreement with other aspects of the budget, including a general fund portion totaling $17.3 million and a separate water-sewer segment, $7.6 million.

However, Cochran voted against the package due to a 5% hike in the water-sewer rate which it contains.

This actually had been approved in early March, in another 4-1 decision.

Cochran said Thursday night she was going to be consistent with her stance in the vote on the budget.

“I will be voting ‘no’ due to the water rate increase,” said the former mayor and popular local radio personality who now works in the educational field.

Concerns over the utility rate hike (whereby users receive one bill for water and sewer services), and other issues had kept city officials from adopting the budget as scheduled during the commissioners’ previous meeting on May 16.

Mayor Jon Cawley said they had agreed to take action then only if no concerns were raised by citizens during a public hearing.

Up stepped John Pritchard, known as a city budget “watchdog,” to question the water rate increase and other aspects of the then-proposed spending plan.

In defending that hike, city officials overall say it’s needed due to Mount Airy landing on a state warning list for not generating revenues at a fast-enough pace to make improvements to its aging utility system in a timely way.

“I appreciate Commissioner Cochran’s ‘no’ vote,” Mayor Cawley said Thursday night, while reiterating the reason for the rate bump in light of a state “dashboard” ranking for funding improvements. “I really don’t see any other way.”

Pritchard had questioned this last month, suggesting that a fund balance of $5 million to $6 million in the water-sewer operation — also known as a surplus, or savings — be used for improvements instead.

The public hearing speaker also said he thinks the property tax rate should be lowered since it is higher than comparable municipalities in the state and because Mount Airy is in great shape financially.

In further responding to Commissioner Cochran’s position, the mayor said Thursday night that Mount Airy showing it is serious about the utility ranking by upping the water rate could pay dividends in the future with state and federal grants.

“We are going to need their assistance to pay for the projects that are going to face us in the future,” Cawley reasoned.

The rate increase shows “we are trying to do our best,” he added.

Cochran earlier had said she did not want to burden local residents and businesses already facing inflationary and other pressures with another financial hit.

She echoed Pritchard’s stance in pointing out that the municipality is in good financial condition and able to pay its bills — whereas some citizens are not.

“In good faith I can’t vote to raise water rates.”

Mount Airy’s rate was last increased in 2018, when a 2% hike occurred.

On a related note, City Manager Darren Lewis — prompted by a question from Cochran — said Thursday night that various charges imposed in the new budget include a higher tap-on fee for utility customers.

The longtime cost of $800 will rise to $1,200 effective July 1.

Lewis explained that this will better enable the municipality to be compensated for the expenses it incurs with tap-ons, including labor provided by city personnel.

Other budget highlights

Mount Airy’s new spending plan also includes a 2% cost-of-living raise for full-time city employees.

Two new police officers also are being reinstated which were eliminated in previous budget action.

Along with covering day-to-day operations, the proposed spending package contains funds for capital expenditures related to major building and equipment needs.

New police cars are in the mix in that regard along with a new recycling truck (which Pritchard also questioned last month), ballfield lights at Westwood Park, paving the parking lot at the Rockford Street fire station and other items, the city manager has said.