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Finance presenter says Black Mountain faces roughly $1.9 million shortfall; council to weigh tax-rate, fee and cuts
Summary
The town's budget presenter told the council the general fund is about $1,858,260 short and the water/waterfront fund about $918,479. Options discussed included tax-rate changes, targeted cuts, use of FEMA reimbursements for capital, and possible delays on major projects.
Black Mountain's council on Monday received a detailed budget briefing that showed the town is facing a significant shortfall and must choose between spending cuts, fee increases or a property-tax change.
The town's finance presenter told the council, "we're $1,858,260 short in the general fund," and that the waterfront (water) fund is about $918,479 short for the next budget year. He asked the council for guidance on what programs or services they are willing to cut and whether they would consider any tax-rate increase.
The presenter said a countywide revaluation pushed taxable values to about $2,646,692,244, a roughly 47.85% increase, and explained how a revenue-neutral rate would lower the millage to an estimated 22.9'cents. He noted a penny on the new values would generate about $263,345 in revenue and demonstrated how balancing the budget could require a multi-cent tax-rate change (examples discussed ranged from roughly 6.8'cents up to about 9.75'cents depending on choices).
Councilors also reviewed alternate balancing tools: raising water rates, increasing the sanitation or solid-waste fee, or making targeted cuts to discretionary spending. The presenter said the town's base water rate is $6.14 and offered a bill-impact example: a 50'cent-per-100-gallon rate rise would add about $25 per month for a customer who uses 5,000 gallons.
Staff urged caution about using one-time FEMA reimbursements to plug recurring operating shortfalls. The presenter said FEMA money could be used as a one-time match for capital projects such as the 9th Street bridge, but warned that using advances to smooth operations could worsen long-term fund balance problems.
The briefing flagged several program and capital pressures: the 9th Street bridge federal project could require a local match estimated between $391,000 and $842,000 and the town may have already spent about $500,000 on engineering that could be at risk if the town withdraws; the fire department has an outstanding pumper purchase that will add debt service; and the Black Mountain Fire Department was described as the lowest-paid department in the county, which staff said threatens retention.
No formal vote was taken. Staff asked councilors to indicate priorities for cuts and to return with further detailed options and vendor or contract bids; the council directed staff to provide additional analyses prior to budget adoption deadlines in June.
