Whiteville staff present balanced budget proposal with 2% COLA, two added positions and $29 million in active projects

Whiteville city staff presented a proposed balanced operating budget that includes a 2% cost-of-living adjustment, two additional staff positions and limited use of fund balance while asking department heads to hold off nonessential capital spending through December.

The presentation, delivered by a city staff member, said the general fund is projected at roughly $7,300,000, the sewer fund roughly $3,500,000 and that the overall package shows an $82,000 contribution to fund balance in the general fund. The staff member said the city is managing about $29,000,000 in active projects and “a total of $45,000,000” in projects the city is overseeing.

Why it matters: staff warned that expenses—particularly personnel and inflation-driven operating costs—have been growing faster than revenues and urged cautious management to avoid deeper draws on fund balance. The presenter said the recommended approach is to “keep doing what we’re doing” through December and defer discretionary capital until the city has clearer revenue results.

Staff outlined three main pressures on the budget: rising operational requirements (including contractual and actuarial costs), personnel costs and multi-year inflationary increases. “We have a 2% COLA in the budget, and it needs to be reflected in October,” the staff member said. The presentation also flagged continuing health and benefit cost pressure that outpaces revenue growth.

The budget document shared with council shows an unrestricted combined fund balance increase of roughly $1,800,000 over recent years, which the presenter characterized as a healthy position but not an indefinite buffer given rising costs. The staff member said the proposed budget includes a fund-balance appropriation revenue line of roughly $250,000 and said the better the city performs on revenues, the less fund balance will be required.

Staff also described plans to sell surplus assets and some department equipment to reduce carrying costs. Utility rates are largely unchanged or subject to modest adjustments tied to inflation; staff said some sanitation fees would be trimmed slightly for recycling, while some utilities show no change.

On capital and projects: staff listed major active projects including the “Anne Franklin” project, Modelers Branch rehabilitation, a lift station ($4,900,000), a separate project listed as “Proballis” (about $3,700,000), a Golden Leaf-funded Main Street drainage project, a $1,000,000 airport sewer-line installation and a $1,100,000 downtown construction/park project. The presenter said those active projects total about $29,000,000 and that the city is managing about $45,000,000 in project activity overall.

On staffing: the budget includes two proposed head-count additions in the general fund—one position for the police department (described as either a patrol officer or a detective to be decided with the chief) and a part-time fire-inspection position. The staff member said the city is considering converting the part-time fire inspector to a full-time position if fee adjustments are made to cover the full-time cost. The presenter described estimated inspection fees ranging roughly from $120 to $300, and said the incremental personnel cost to expand inspections would be about $75,000.

Council discussion emphasized caution. One council member said he would not support a tax increase and urged the city to prioritize what can be accomplished within current revenues. The presenter and council members repeatedly urged holding off major purchases and “saving gunpowder” for bigger needs next year.

The presenter noted the city’s property valuation cycle—citing a valuation change around 02/2022—and said tax-rate adjustments and use of fund balance are typical elements of the multi-year budgeting cycle. Staff asked for council feedback on items to add, remove or defer but presented the proposal as a balanced budget that will require close management.

Ending: staff asked department heads to maintain current operating patterns through December while finance and council monitor revenues and capital priorities; council members said they will take the plan under advisement and return with any suggested changes in subsequent meetings.