City seeks comments on budget

Havelock residents can weigh in on the city's $14.8 million proposed budget at a public hearing Monday night.

City leaders have recommended a 4-cent tax increase and a 4.4 percent water and sewer rate hike. Jim Freeman, Havelock city manager, said the board has asked for a no-frills budget that maintains public services at their current level.

"It's a status-quo budget," Freeman said. "Growth sounds good, but the other thing is the expenses that go along with that growth. Growth from the tax base lags behind for a couple years before it catches up."

The current property tax rate is 49 cents per $100 valuation. A 4-cent increase to 53 cents would cost an extra $40 per year for a $100,000 home.

An average family using 5,000 gallons of water per month would pay about $2.80 more with the proposed rate increase.

Havelock's 2007-08 budget of $16.4 million included no tax or utility rate increases, but the total included $3.2 million in federal money for the sewer inflow and infiltration repair project, Freeman said.

Freeman frets that the city isn't saving money for long-term growth, including a $28 million wastewater treatment plant overhaul and a proposed U.S. 70 overpass providing access to Cherry Point's Slocum gate.

"Based on what we cut out, we're not putting anything in the general fund for reserve," he said. "If we have to go down any lower than this, we might have to look at (reducing) the service level."

Commissioners can tweak the budget after Monday night. A final budget workshop is tentatively scheduled for June 16.

 ON THE MONEY

 Overall budget $14.8 million

Police $1.97 million

Streets $1.43 million

Recreation $802,388

Fire $284,488

Emergency services $727,467

Administration $803,388

Planning $465,145

Information systems $267,121