Lake Santeetlah – Councilwoman Tina Emerson, who is the Town of Lake Santeetlah’s finance officer, filled
in some blanks on April 28, which were left following the first budget workshop a week earlier.
The town has many needs and must haves in the upcoming budget. They include road repair and replacement, equipment for the water system, a roof for Town Hall, financial software, a water meter reader and a new truck in 2023.
Emerson said priorities in the upcoming budget are roads in need of repair and equipment needed for water service.
The proposed budget would not raise taxes or water fees. The proposed capital reserve fund is $59,302.50.
The proposed budget will be presented to town residents at an upcoming public hearing.
Some of the changes were small. Mileage was increased from $1,800 to $2,400, to allow more training opportunities for staff; employee health insurance as adjusted from $9,660 to $9,700; and maintenance to public buildings was increased from $700 to $1,200 with the understanding that more funds may be necessary as supplies increase in price.
Some changes even saved money. Truck maintenance decreased from $2,800 to $2,000. The truck will not need new tires in this budget year.
Other changes were a bit more pricey. Maintenance to building went to $14,000 based on the current estimate received; paving of Indian Trail was put at $40,000, with Emerson saying the money will come from escrow from settlement funds.
Also, capital reserve for roads was put at $59,302 for paving and road repair.
The changes left $82.50 remaining in the general fund.
Councilman Jim Hager was uncertain whether the town could take $40,000 from escrow to fund the budget, and Councilwoman Diana Simon said the $40,000 settlement received had been earmarked for water line discovery.
Emerson said she had looked back at previous minutes and the money had not been specifically earmarked but simply placed in escrow to later determine where it was needed.
Hager asked how much from the general checking account is anticipated going into reserves at the end of this fiscal year. Emerson said there is about $40,000 that remains for the front entrance improvement project and $26,000 in paving in this fiscal year. Emerson offered to make a projection for Hager and provide at a later time.
Changes in the water budget include late fees of $500, a line item created for this budget year.
American Rescue Plan Act funds the town will receive total $13,385, including $2,000 for software and maintenance, $4,600 for fencing around the water tank, and $9,000 for a new meter reader.
Another $2,000 was designated for water repairs, with the understanding that the water system is uncertain and when there is a water line break, extra funds are needed.
Simon said town roads are in fairly good condition other than Indian Trail. She said the roads were resurfaced about three years ago. She did not agree that the town should purchase leaf removal equipment, saying it requires more than a machine and several workers to remove the leaves. She also urged the board to add $100 for kudzu removal chemicals.
Simon also said the costs for water meters and hook-ups should be increased.
Simon said that past council member Keith Predmore had a contact for someone who could locate the water lines within the town for $35,000.
Hager pointed out that the The Graham Star published liens filed against residents from Lake Santeetlah who had not paid their current-year taxes.
Emerson has been advocating that the town start its own tax collection rather than pay the county $13,000 a year for that service. A financial software package that she advocates can assist the town in tax collection, but Simon pointed out that the software has a $29,000 up-front price tag.
Emerson reviewed the proposal for retirement options for town employees. The town offers a Simple IRA that only the two full time employees qualify for. The max contribution from the Town is 3 percent in this program.
The state offers two options, NC 457 Plan and NC Pension Plan. Emerson said the NC 457 Plan seems most suitable for Lake Santeetlah’s budget. That plan allows the town to contribute a higher amount and this amount can be matched by the employee. Part-time employees qualify for this plan as well. Emerson proposes that the Town move to the 457 Plan and contribute 8-10 percent in the upcoming budget year.
Mayor Connie Gross proposed to change the mayor fee in the upcoming budget to $1,200 and use the remaining $1,200 to donate to the Nantahala Regional Library.