Water, sewer rates going up in River Bend; vote on property tax increase is postponed

RIVER BEND -- The town's rates for water and sewer service rates are going up in July.

Water rates will increase from $16.50 to $17.23 a month. Sewer-service rates go up from $19.40 to $20.76 a month.

The new rates were adopted Thursday night by the town council, but a vote on a proposed increase in the property tax rate was delayed until June.

The town manager has proposed raising the property tax rate by 3 cents per $100 valuation in the coming fiscal year.

Under the proposal, property taxes would be 28 cents per $100 of valuation. The change would mean the owner of a $300,000 house would pay $840 in taxes on it - a $90 increase over the current cost.

Some residents questioned the need for a tax increase, wondering why the town would not instead dip into its more-than-healthy reserves.

River Bend resident Greg Nelson opposes the increase.

"I understand what you're saying about inflation," Nelson said, "but the salaries aren't keeping up with that and yet you're wanting us to support this burden. I'm doing everything I can to cut corners, but you've got to maintain hygiene."

River Bend maintains a reserve fund, or fund balance, that is at least half the size of its general fund budget. The state's Local Government Commission requires a municipality to keep just 8 percent of its overall budget in reserve.

For the fiscal year that begins July 1, River Bend's general fund budget, or operating budget, amounts to $1,454,183. Its projected reserve balance for the coming fiscal year is $711,809.

But town leaders say that reserve fund is down from previous years. They have had as much as 56 percent of the town's operating budget matched in town reserves.

"It's like a savings account," Town Manager Drew Havens said. "And we try not to touch it."

Councilman Irving "Bud" Van Slyke said the tax increase is needed because the town "anticipates falling short" on outside revenues from state or grant sources.

"Our challenge this year is on the resource side," he said.

Van Slyke said he would like to have had residents speak out earlier in budget sessions.

"At no time did we have more than half a dozen people here," Van Slyke said. "One of the things that has troubled me is that we always get recommendations after the fact."

Among the projects that would be paid for out of next year's general fund is street maintenance.

A street project on Gatewood Drive, along with other patching around town, would cost $76,375.

There's also a drainage project in Lakemere subdivision and a parks-and-recreation upgrade planned around the town commons and Ritter Field.

The proposed budget includes a 3 percent pay increase for town employees.