Davidson begins budget process
by Staff Writer
DAVIDSON – Davidson will likely dip into its fund balance to hold its tax rate steady and run the town next year.
Town Manager Leamon Brice and Finance Director Cindy Jones presented their draft of Davidson’s fiscal year 2013 budget to Mayor John Woods and commissioners at the town board’s Tuesday, April 23, work session.
The town’s tax rate will remain 35 cents per $100 of assessed value.
Jones projects the town’s revenue to be $10.5 million, just $2,068 more than in fiscal year 2011-12.
Jones recommends budgeting for $9 million in recurring expenditures, 1.2 percent less than the previous year. Recurring expenditures include annual funds to operate the town including administration, police, fire, economic development, affordable housing and recreation.
Jones’ budget also includes a $2.087 million contribution to MI-Connection, the broadband company Davidson owns with the town of Mooresville. MI-Connection will be $81.18 million in debt at the end of this fiscal year. While sales and revenues are increasing, the company is still growing slower than projected.
After years of false projections, the board is skeptical of counting on MI-Connection’s debt service decreasing in the near future.
“It’s hard for us to predict that it’s going to be stable until we see that it is,” Woods said.
The specter of MI-Connection influenced commissioner’s feelings on dipping into the town’s fund balance, meant to be an emergency and investment fund.
Jones’ recommended budget calls for a $276,500 draw from the fund balance to fulfill needs such as automated external defibrillators for two fire engines, street maintenance trucks, administrative computer equipment and riot gear.
The board will hold a public hearing and develop a more concrete budget at its May 15 meeting.
Share your voice
Do you have budget concerns to share?
Fiscal year 2012-13 town budget public hearing
Davidson Town Board meeting May 15, 6 p.m., Town Hall, 216 S. Main St.