China Grove transfers funds to cover water costs
CHINA GROVE ó Aldermen held a special session Monday evening to clear up end-of-the-year budget business.
The biggest item in the financial housekeeping was transferring $230,000 to cover the town’s costs of water and sewer operations for the fiscal year that ends next Tuesday.
Despite a hike in water and sewer rates, town residents continued cutting back, putting the town utility in the red for the year.
Finance Director Mary Jo Bopp said the $230,000 will come from the utility fund reserve adding that the transfer “all but wipes it out.”
The town’s general fund balance remains in good shape at just over $1.3 million.
The amendments included some minor changes within the various department funds, without using any additional savings.
The amendments also created a debt service in the various funds to show the town’s payments including the $619,000 paid this year on water and sewer loans.
Previously, the debt service costs were included in the expense sections of the various department budgets. The Local Government Commission notified the town that the debt service should be recorded in a separate fund.
Earlier this month, the board approved the budget for the coming fiscal year, which starts July 1. It retains the current tax rate of 38 cents per $100 valuation. It does include a $10 per month account fee and a 5.5 percent hike in sewer fees.