INDIAN TRAIL – Interim Town Manager Ray Allen presented to the town council May 26 an $18,697,657 proposed fiscal year 2020-21 budget with no increases to the tax rate or stormwater fees.
The tax rate stands at $.185 per $100 of assessed valuation. The General Fund is proposed at $11,760,416. The General Fund represents an increase of $8,407 (0.072%) over the current year’s budget.
Property tax values have risen to $3,727,177,552, an increase of 3.69%, due to new development and construction. So, the town will see increased property tax revenues; however, other revenue sources, such as sales taxes, investment income and telecommunications tax revenue, are expected to decline due to the COVID-19 pandemic and resulting economic downturn.
ABC System revenues will decline because of the cost of construction of a new ABC store.
The proposed budget continues town services at the current level along with some enhancements.
Highlights of the budget include:
• A new investigator position for the town through a contract with the Union County Sheriff’s Department, as well as a grant match for an application for a traffic safety grant through the Governor’s Highway Safety Program
• The replacement of town equipment to maintain effectiveness and reliability
• An update of the town’s Comprehensive Plan
• Stormwater improvement construction projects for First Avenue and Indian Trail Park in the stormwater fund budget
• $1.5 million in funds for resurfacing of town streets in the Powell Bill Fund Budget
The town has an Aa1 bond rating from Moody’s Investors Service, and its debt burden is low. The town has deep cash reserves with total fund balances of $26.9 million.
The council will approve the budget no later than June 30, which is the end of its current fiscal year.