By Liz Moomey
liz.moomey@salisburypost.com

SALISBURY — Despite a “very tight budget,” Salisbury City Manager Lane Bailey on Tuesday recommended to council a tax rate decrease.

Currently the rate sits at 71.96 cents per $100. Bailey recommended it be reduced to 71.27 cents per $100.

This year, amid a revaluation that produced increased property values across the county on average, Salisbury saw an increase in property values, too. The revenue-neutral rate would have been 67.34 cents, and Bailey said his proposed rate of 71.27 cents is a result of the increased personnel costs with increased salary and staff at the police department, fire department and public works. It’s also the result of a billing error in which the city previously reported the wrong tax rate to the county of 71.69 cents per $100.

The general fund’s fund balance in the proposed budget is significantly above the amount of 8% recommended by the Local Government Commission, which allows the city to tackle some projects, Bailey said.

“Through sound financial management that this organization has committed to in the past, our fund balance is very strong,” Bailey said. “We’re at 35 percent.”

Bailey proposed the city provide funding for 14 projects in the proposed budget, including:

• $350,000 for Bell Tower Green Park in downtown

• $200,000 for Dixonville Cemetery

• $100,000 for a Fire Station No. 3 reimbursement with future debt

• $350,000 for City Park Lake dredging

• $270,000 for a Plaza roof project

• $135,000 for Plaza waterproofing

Bailey, though, recommended an increase in solid waste of $2 for residents and $2.50 for commercial due to the increase cost of recycling.

He also recommended an increase of 1.6% for Salisbury-Rowan Utility consumers to the water/sewer utility fund.

“That’s the greatest economic tool this county has is our utility department and we’re very blessed to have a solid water and sewer department — a lot of capacity for economic growth without that we wouldn’t have those opportunities,” Bailey said.

Salisbury-Rowan Utilities is working on several projects, including an effluent pump station, headworks replacement project at the Grant’s Creek wastewater treatment facility, Crane Creek sewer lift station and force main improvements.

Bailey said the city had to increase the amount of funding going allocated the transit fund to $633,564, an increase of $285,742. He recommended the council to have a discussion about current routes, future routes and the areas the transit system serves outside city limits.

The council set a public hearing for citizens’ input for the June 4 council meeting and scheduled a budget workshop for June 11 at 10:30 a.m. at Salisbury-Rowan Utilities’ administration building — 1 Water St. in Salisbury.

“We look forward to working with you to develop a budget that meets the needs of the citizens of our community,” Bailey told the council.