By Shavonne Potts
Salisbury Post
LANDIS ó Residents could see their property tax rate increase by 8 cents in the upcoming fiscal year ó a 25 percent hike over the current rate ó as well as higher water and sewer fees under a proposed budget discussed Monday.
The Board of Aldermen is trying to balance the proposed $8.9 million spending plan for 2007-2008 and paired the increased taxes and fees with budget cuts.
The board has called a special meeting June 25 at 6 p.m. to adopt the budget.
Aldermen had anticipated a 5-cent tax increase this year, but tacked on 3 cents more this week. That means if the budget is approved, residents pay 40 cents per $100 of assessed property value, up from 32 cents this year.
The probable tax hike follows a countywide property revaluation that increased property values and would have increased tax bills even without a higher rate.
Landis’ revenue-neutral tax rate ó the rate that would have kept tax bills practically the same as they were before the revaluation ó was 28.65 cents per $100 valuation, town officials calculated.
With the proposed increase, a person with a $75,000 home would pay $300 in property taxes next fiscal year, up $60 from the current rate. The owner of a $125,000 house would pay $500 in taxes, an increase of $100. A person whose home is valued at $175,000 would pay $700, up $140 from the current tax rate.
The proposed tax rate increase would generate an additional $41,000, balancing the general fund.
The town would also transfer slightly less than $200,000 from its electric fund to the general fund. The Local Government Commission allows a municipality to transfer up to 5 percent of the previous year’s utility revenue, which in this case would be around $250,000.
Under the proposed budget, the monthly water meter fee would increase from $8.60 to $10. The water rate increases 50 cents from the current $6 per 1,000 gallons. Water and sewer tap and access fees would go from $850 to $1,000 apiece for new customers. New customers would pay $2,000 for water and $2,000 for sewer to connect to the system.
The monthly minimum charge for sewer increased from $6 to $7, a change discussed at the last meeting. A fee hike discussed in May and changed again this week was the sewer rate, which would go from $7.52 to $8.75.
Garbage collection fees would increase from $10 to $12 monthly. The fee covers backyard and curbside trash collection, as well as removal of debris and limbs.
And the cost for a zoning permit would be $20, up from the current $5. Along with tax and fee increases, the board made more cuts totalling $125,200 to several departmental budgets since the last work session.
The Administration Department saw more than $37,000 in cuts, the majority from capital expenses and the rest spread across office supplies, motor vehicle expenses and utilities.
A total of $27,500 was slashed Monday from the Fire Department budget and $22,200 from the Police Department. Also the Streets Department budget was cut by $17,000.
The board had discussed not cutting the Recreation Department budget, but it too suffered. The department already was to operate on $40,000 less than this year. Under the latest proposal, it would take an additional $21,500 reduction with a large chunk coming from money tabbed for supplies, equipment, maintenance and repairs.
Employees will still get a 3 percent pay increase. The town will not make any major purchases.
Contact Shavonne Potts at 704-797-4253 or spotts@salisburypost.com.