Summit officials are set to adopt a $2.2 million budget that features no tax increase, 9% pay raises for most employees and a healthy cash balance.
The town council reviewed a draft of a budget Tuesday with CPA Hal Holloway, who helped prepare the spending plan.
The council recessed its meeting and will reconvene at 5:30 p.m. Sept. 15 to adopt the budget.
The millage rate will remain 39.35 mills, with 36 mills devoted to the general fund and 3.35 going to debt services. Holloway said this represents a shift of .75 mills from debt services to the general fund. The town moved .25 mills from debt services to the general fund last year.
“We’ve actually built up a bit of a surplus in the debt service fund because the property values have gone up over the years,” Holloway said.
The budget includes 9% pay raises for all employees except department heads and elected officials. Mayor Percy Robinson said the town would likely get the raises up to 10%. Officials had hoped to give 30% pay raises earlier this year.
The general fund includes a beginning cash balance of $1 million along with $1.2 million in revenue expected to be received in the coming fiscal year, which begins Oct. 1.
Projections show $432,842 of the budget will be raised through property taxes, while sales taxes and other state revenues will bring in $574,050.
“You’ve got to remember, now, there was a time when Summit’s sales taxes were $18,000, $20,000 a month,” Robinson said, noting that the town has been averaging $40,000 or more a month in sales taxes this year, even with the pandemic affecting the local economy.
Other revenues include $5,000 from licenses and permits, $42,700 from local government revenues, $137,100 from charges and services, $9,000 from fines and forfeitures and $1,600 from miscellaneous revenues.
Public safety gets the largest share of the budget, at $499,392, while public works will receive $353,528, general government expenses come to $306,842 and court services will get $40,096.
The town expects to have a $1,025,250 general fund surplus at the end of the fiscal year.
The debt services fund incudes a $37,126 beginning cash balance, $6,593 in inter-governmental revenues and $40,222 raised from property taxes.
The town plans to spend $26,593 on principal on outstanding loans, $18,500 on interest and maintain a $38,848 cash balance.
The utility fund, which comes from water and sewer bills, expects to make $310,000 off water sales and $300,000 from sewer billing, as well as $102,910 in other revenue. A $883,203 beginning cash balance brings the fund to $1,596,963.
Expenses include $240,496 for personnel, $81,200 for supplies, $124,226 for loan principal repayment, $6,700 for interest repayment, $20,000 for capital outlay and $180,710 for other services and charges.
The fund is expected to have a $943,630 ending cash balance.
The cemetery fund is worth $35,071, including a $30,071 beginning cash balance. The town expects to spend $14,400 on maintenance and keep a $20,671 balance.