Council passes budget on first
reading
By Thomas Wilson
STAR STAFF
twilson@starhq.com
Elizabethton City Council members passed the
first reading of the city government's 2004-2005 budget ordinance
at its May meeting Thursday night.
The city's fiscal year 2005 general fund budget
comes in at $11,944,927 - a 5.4 percent increase over the
current year. The budget does not include an increase in the
city's property tax rate or water and sewer rate schedule.
The general fund hike accommodates increased group insurance
and other fixed costs. The council voted 5-0 to pass the ordinance
with Mayor Sam LaPorte and Councilman Bill Carter absent.
Council members voted 5-0 on first reading of
an ordinance to set the city's real property tax rate for
the 2004 tax year. The real property rate of $2.30 per $100
of assessed value has not been increased since 1992. A fact
not overlooked by Councilman Pat "Red" Bowers who commended
City Manager Charles Stahl for thrift during his 10 years
as city manager.
"This is the 11th budget presented to us without
a tax increase," said Bowers.
General fund budgets approved by council members
for 2003 and 2004 fiscal years included spending cuts of 13
percent and 11 percent, respectively. The 2005 budget gives
city employees a 2.5-percent cost-of-living pay raise, but
includes no step pay raise for the third consecutive year.
"During the past two budgets we all know we've
had to make sacrifices," said Mayor Pro Tem Sam Shipley who
presided over the meeting.
The council also voted 5-0 to approve the first
reading of an ordinance revising the city's water and sewer
ordinance. The ordinance did not raise water and sewer rates
but revised the city utility rate structure to accommodate
new state and federal sewer guidelines.
In other business, the council voted 5-0 to approve
the following motions and resolutions:
* Payment of $5,000 to fund one-half of annual
Appalachian League dues for the Elizabethton Twins organization.
* Transfer to real property including East Side
Elementary and T.A. Dugger Junior High School to the Elizabethton
Board of Education based on new federal accounting standards
that require the city to list of all municipally-owned property.
* The purchase of property at 701 Fourth St.
under the city's grant through the Federal Emergency Management
Agency. The purchase price of $66,000 will be reimbursed to
the city by FEMA.
