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The Statesville City Council got relatively good news recently: Amid the recession, revenues from the city's two largest funds are running ahead of budget.
The first-quarter report from Finance Director Lisa Salmon credits aggressive collection of taxes and an increase in electric rates as the main factors.
The general fund is running $635,557, or about 15percent, ahead of budget projections. The electric fund is $617,730, or about 6percent, more than budgeted.
"The increase in the general fund is actually a product of three factors: a 16percent increase in collection rates by the county, a slight uptick in sales tax receipts and revenues from state taxes," Salmon said.
In the electric fund, the increase results mainly from an 8percent rate hike implemented July 1. Electric sales declined by about 2.6percent during the first quarter, which ended Sept. 30.
The city's two other smaller funds - water/sewer and Civic Center - are running 4percent and 9.5percent behind budget projections, respectively. The $79.1million operating budget, which went into effect July 1, did not increase the general property tax rate of 38 cents per $100 assessed value.
Expressing cautious optimism, Salmon urged the council monitor spending closely. "We need to stay on top of the situation, and I'll report back to the council each quarter."
In other action:
The council approved the site plan for a new 8,000-square-foot Employment Security Commission building on 1.19 acres at 133 Island Ford Road. It will include parking for 80 cars.
The council agreed to have the state Department of Transportation inspect the city's six bridges, as required every two years. The Federal Highway Administration will pay 80percent of the inspection cost.
The council authorized spending $11,530 to erect "City of Statesville" signs on major roads entering the city. Assistant Public Works Director Mark Stephens said the current signs don't meet new state and federal standards for reflectivity. The new signs also will mention the city's selection as a 2009 All-American City and the fact that Statesville is the birthplace of astronaut Thomas Marshburn.
The council gave a standing ovation to Dale Wilson, named 2009 National Disabled Veteran of the Year. Wilson, a Statesville native, lost his right arm and both legs in combat during the Vietnam War but has continued to provide counseling and assistance to veterans. Presenting a special citation, Mayor Costi Kutteh described Wilson as "a tremendous inspiration to everyone who knows him."
