By Shavonne Potts
spotts@salisburypost.com
LANDIS — The Landis Board of Aldermen is in limbo on its budget until it receives word from its water providers about any potential rate increases.
The board met Tuesday in its third budget work session since mid-April.
The board receives services from Salisbury-Rowan Utilities and Kannapolis Utilities and those agencies have not confirmed rates. The board will have to wait to see if it would need to pass a rate increase on to town residents.
The town staff will include an amount in the budget it believes the agencies would increase, if those entities don’t decide by the time Landis must wrap up its budget.
Town Manager Reed Linn said Salisbury and Kannapolis typically notify the town in time to plan its budget.
At its last budget meeting, the board considered a 3-cent tax rate increase. If approved, a 3 cent rate increase would generate $96,000 in revenue.
It’s been more than five years since the board increased its tax rate.
The board did not discuss the 3-cent tax rate at Tuesday’s meeting, just the light fund.
The light fund is balanced with no capital expense planned.
The staff recommended a total light fund increase of 10 percent, which the board believes it will have to pass along to its residents.
The board also held a public hearing prior to its budget workshop to adopt a resolution regarding the water bonds.
The board approved the sale and issuance of nearly $3.4 million in water bond anticipation notes.
“This is part of the process,” said Finance Officer Ginger Gibson.
Gibson said the next step is the sale of the notes May 15.
Bond anticipation notes are smaller short-term bonds that can be issued by municipalities. The issuing bodies use the bond anticipation notes as short-term financing.
The town began looking into a water project when in 2007 it was told by the state it needed to make necessary system improvements.
The board did not schedule its next budget meeting.
The board has to complete its 2012-13 budget by June 1 so it can adopt the budget by July 30.
The board will meet Monday for its regular meeting at 7 p.m., which had been rescheduled.
Contact reporter Shavonne Potts at 704-797-4253.