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May 19, 2018 newswires No comments Views: 16

Graham budget: Rising health costs put hold on police, fire requests

Times-News (Burlington, NC)

May 19--GRAHAM -- Last-minute additions and worries about staying ahead of the needs in a growing city dominated Graham City Council's 2018-19 budget workshop, Friday, May 18.

The basics:

$21,262,500 -- proposed total 2018-19 budget, a 3.49-percent increase over this year.

$12,973,000 -- total proposed general fund budget, which pays for things like police, fire, recreation and maintenance departments, a 2-percent increase.

Health insurance

City Manager Frankie Maness drafted his recommended budget without knowing what the city would end up paying for employee health insurance.

"That's the biggest puzzle piece every year, and this year is no different," Maness said.

But the 54-percent increase the city's current insurance provider wanted to provide the same level of coverage would add close to $570,000 to the current $1.1 million Graham pays in premiums, which is the equivalent of 5 cents on the property tax rate.

"And next year they want another 40 [percent]," Maness said. "The last couple of years they've paid out more than we've paid in, and if that keeps up you're looking at an increase."

Maness recommended joining the insurance pool with the state League of Municipalities, which should add no more than 12 percent for similar coverage.

"The maximum out-of-pocket is very comparable," Maness said.

Council members said it was important for the city to maintain a good employee benefits package to keep from losing staff to higher-paying municipalities.

"This package has to match up to other cities, or we're going to lose employees faster," said Council Member Melody Wiggins, former director of the city's recreation and parks department.

Mayor Jerry Peterman said the city should also look into pooling with Burlington or Alamance County before making a decision.

"But we have to look," Peterman said.

Economic development position

The council got its first look at a proposal to make a $60,000 contract with the Cooperative -- the downtown revitalization group and business incubator -- to retain Director of Community Development Chelsea Dickey. Current funding for her position runs out in August. The proposal focused on various downtown events and publicity Dickey helped organize.

Peterman took an informal poll of the council, and there was a majority in favor of asking Maness to find funding for the contract in the 2018-19 budget.

"I see this as bringing the economic development to get what we need," Wiggins said.

Putting things off?

Maintaining the city's 45.5-cent tax rate per $100 of property value has meant turning down more than $2.3 million in department budget requests including:

* four new police officers plus four new cars, radios, computers, and their guns;

* three new firefighters that would have meant an additional $175,000 in salaries alone;

* a new IT worker;

* a new fire engine; and

* a "brush truck" for the fire department.

"I tried to keep that in there, but when you're trying to fill a million-dollar gap, you have to look at a lot of $100k items," Maness said. "That was one of the last things to go."

Wiggins and Council Member Chip Turner asked if putting off those expenses wouldn't mean just having the city's needs get bigger and more unmanageable in future years.

"We just keep pushing them down the road," Wiggins said.

Maness said the city's growth and growth in the city's tax base would bring more revenues in future years.

"We're getting there, but it's not going to happen overnight," said Council Member Lee Kimrey.

The budget does include another $160,000 for fire department turnout gear and breathing apparatus.

"Really, your local taxes go to your public safety," Maness said. "Your police and fire."

The police department is about 30 percent of the city's general fund and the fire department about 9 percent.

Other items

Maness recommends spending $25,000 to improve the sound system in the council chambers. Several council members had hoped Graham could find a way to broadcast to broadcast its meetings like other boards in Alamance County for better public access, but Maness said any video broadcast capability with multiple cameras would start at $100,000.

Maness said the board could broadcast on Facebook live if the sound in the chamber was better, though Peterman and several other council members didn't like the idea of anonymous comments scrolling across the screen while they were broadcasting.

Downtown Wi-Fi is probably also out of reach in this budget, Maness said, since it would have to be independent or at least insulated from the city's internet connections to keep people from hacking into city systems.

Graham's growth does mean getting another $1.3 million in sales tax revenue.

"Our slice has gotten bigger," Maness said. "We grew more than anybody last year"

Maness estimates getting 7 percent more than the current year, or about $3.4 million.

The budget public hearing will be at 7 p.m. June 5 in the council chambers at 201 S. Main St., Graham.

Reporter Isaac Groves can be reached at [email protected] or 336-506-3045. Follow him on Twitter at @tnigroves.

___

(c)2018 Times-News (Burlington, N.C.)

Visit Times-News (Burlington, N.C.) at www.thetimesnews.com

Distributed by Tribune Content Agency, LLC.

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