SWANSBORO - The Town of Swansboro has a new budget that retains the same property tax rate while dealing with a significant loss in revenues.

The 2009-2010 general fund budget for the town is $2,885,400, which is an 11-percent decrease from the current year budget of $3,246,300.

The new budget, adopted by the Board of Commissioners at its June 16 meeting, takes effect July 1.

The property tax rate will remain 39.3 cents but the hit to revenues is a reflection of a number of challenges the town faced in approving the plan.

In his budget message, Town Manager Pat Thomas said the recession continues to be a factor in revenue declines but is only one part of a "triple whammy" of challenges.

When it comes to the town's loss of sales tax revenues, the county's recent change to a blended sales tax distribution method has the greatest impact. And the county's property tax increase for the upcoming year will play into that formula, Thomas said.

The town's new budget estimates a loss in sales tax revenues of $100,000 based on the latest available information

As Swansboro adopts its budget, Thomas said there is also the remaining challenge of handling budgeting decisions at the state level. As the state works on its budget, uncertainty remains when it comes to state revenue sources for local governments, he said.

The town's loss in revenues will mean operating on a lean budget and deferring expenses when possible but that doesn't mean the town will take on a "bunker" mentality and put all plans on hold, Thomas said.

The town's current year spending was contained to 12 percent less than budgeted while still accomplishing a number of goals, including completion of the downtown Visitors Center, improvements to Pirates Den Park and opening of the new community room.

"We can operate conservatively but continue to do things that improve the quality of life," Thomas said.

The budget does not cut any jobs but there will be no cost-of-living adjustments or funding for merit pay increases.

One fee increase residents will see is a jump in the garbage collection fee to $12 a month. The fee is now $11.01 a month.

Thomas said the increase is to help make sure the service is largely self-supporting. The other reason is to offset a new state surcharge on landfill tipping fees that has already taken effect.

Contact Jannette Pippin at 910-382-2557 or jpippin@freedomenc.com.