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Newton approves $35 million budget

Water, sewer rates to increase by 20 percent

By Dee Henry | Hickory Daily Record

Published: June 17, 2009

NEWTON - Wayne Dellinger wanted to save residents at least part of the 20 percent increase in water and sewer rates. But when it was evident that wasn't going to happen, he voted against the 2009-10 budget document.

"My biggest concern was having to raise water and sewer rates 20 percent," he said Tuesday during the City Council meeting. "I had hoped we could have used this year, because times are hard, to use some reserve money and not put that large burden on our citizens," Dellinger said.

The budget was approved on a 5-1 vote during the city council's regular meeting Tuesday night.

All of Dellinger's fellow council members were against the rate increase, but said it had been passed down to the city by state mandates.

"It's something that's out of our control," Councilman Al Gaither said. "We don't have a slush fund to get this money from, so we have to pass it on."

The water and sewer rate increase is included in the city's budget along with a 3 to 4 percent increase in electrical rates for industrial and residential customers respectively.

That increase, board members said, follows ElectriCities increasing its rate by 5 percent. Those rates will continue increasing each year, according to city officials, through 2012.

The city handles its own electricity, being a member of ElectriCities and runs the service as a business. That includes keeping the balance in the electricity fund up as well.

"It's unfortunate we have to talk about a 20, 15 or 10 percent increase, but you have to pay for services," said Mayor Robert Mullinax. "We all live in the city and we have to help pay the load."

The increases are attempts to keep up the balance in the Water and Sewer Fund and the Electric Fund.

The city has $445,000 in its water and sewer fund balance. It needs to keep this balance up to increase its eligibility for Clean Water Management Trust Fund grants from the state, officials said.

Newton Finance Director Serina Hinson said the rate increase will put $244,000 in the reserve fund at the end of the fiscal year.

Mullinax said if the city received stimulus money for the repairs to the wastewater station on Burrow Road, an additional $1.9 million will be available.

The City Council decided to put off until next year the purchase of an Automatic Vehicle Locate system requested by the fire department, but approved firefighters being paid for sleep time during their shifts. The budget funded three, rather than the requested four, reserve officers and five new vehicles for the police department.

BUDGET ISSUES DISCUSSED

• Denied request for an Automatic Vehicle Locate system for the fire department ($36,000)

• Gave Green Room a one-time $25,000 contribution earmarked for building funds (request was for $50,000 a year for five years)

• Decided to take out a $160,000 loan for the purchase of a new track loader as opposed to leasing

• Approved purchase of five new police cars with money from General Fund

• Reduced number of reserve police officers from four to three

• Approved payment of sleep time for firefighters

• Approved purchase of a 1996 bucket truck, a 1990 pickup truck and a replacement Crown Victoria from capital outlay funds for the public works department

• Approved 20 percent increase in water/sewer rates and 3 to 4 percent electricity rates for industrial and residential customers respectively