CHINA GROVE — Today, China Grove’s town board is scheduled to have a public hearing and approve its fiscal year 2016 budget.

The meeting is scheduled for 7 p.m. today at town hall, 333 N Main St. The town board is scheduled to have a public hearing on its fiscal year 2016 budget before a vote. The latest version of China Grove’s budget includes $4.22 million in expenditures.

For municipalities of China Grove’s size, the Local Government Commission — a financial regulatory agency — recommends a fund balance, which partially functions as a savings account, of at least 60 percent, according to the town manager’s budget summary. To help balance its budget, China Grove will withdraw more than $250,000 from its fund balance and reduce the amount to less than 50 percent, according to a budget draft. The largest portion of the withdrawal will pay for a down payment on a new fire truck.

China Grove’s fund balance will still remain far above the required minimum of 8 percent.

The town’s budget also proposes a tax increase of 2 cents per $100, which is considered revenue neutral. The increase would bring China Grove’s property tax rate to 58 cents per $100, which equals $580 in taxes on a $100,000 home.

“Due to the recent property revaluation conducted by Rowan County, the town’s property values were decreased,” Town Manager Ken Deal wrote in a budget summary. “In order to continue providing the essential services to our citizens, and remain revenue neutral we must increase our revenue.”

The China Grove Fire Department is projected to have the largest budget for the 2016 fiscal year at $1.18 million. The fire department’s budget includes the purchase of a fire truck, which could cost more than $600,000.

If approved, the town’s fiscal year 2016 budget plans for a $175,000 down payment on the truck and a $500,000 loan.

The largest single revenue source in the town’s budget is property taxes at $1.69 million. Sales taxes are the second largest source of revenue at $725,000.

The fiscal year 2016 budget will begin on July 1 and end on June 30, 2015.

Contact reporter Josh Bergeron at 704-797-4246.