6/3/04

Town Budget Set for 2004-2005 Fiscal Year
No Tax Increase for New Fiscal Year

During its June 1 meeting, the Holly Springs Town Counciladopted the budget for the 2004-2005 fiscal year. The $11.5 million budget provides for the continued high level of Town services, stores money in reserve funds for future infrastructure expansion and capital improvement projects, and calls for eight new positions. In addition, the utility fund budget will raise the base fee for water and sewer services by $1 each per month.

The increase in the water and sewer base fee will make the Town less dependent on permit fees to pay for continued utility services. Currently, Holly Springs water and sewer service operations are dependent on revenues from permit fees, levied when developers apply for permission to construct or enlarge structures in Town.

Although growth in Holly Springs continues, Town leaders want to better prepare for the future when growth may not be maintained at its current pace. Town leaders want more of the permit revenues to fund future water and sewer infrastructure improvements – such as the upcoming expansion of the Town’s wastewater treatment plant – which are a necessity to supply services to the increasing number of utility customers brought in by new development. Ideally, water and sewer services should be self-sustaining, while permit fees would support infrastructure expansion for the increased utility customer base.

“We’re increasing rates to better provide for the future,” explained Finance Director Drew Holland. “We need to wean ourselves off permit fees in order to support the operation of the utility fund. Permit fees should go for projects and infrastructure, not operating expenses.”

Holly Springs utility customers will see the water and sewer base fee increase beginning on the August bill, which reflects July water usage. The base fee for both water and sewer, currently $5, will increase to $6.

During the 2004-2005 fiscal year, Holly Springs will continue numerous capital improvement projects, including road improvements, building a new fire station on Holly Springs Road to replace the station on Main Street and provide more even fire protection throughout Town, and park improvement projects. Money for future capital improvement projects, such as a cultural center, community center, sidewalk projects, wastewater treatment plant expansion and park improvements will continue to be allocated to reserve funds.

New positions funded during the 2004-2005 fiscal year are:

• An administration assistant in the Administration Department, to assist the Town attorney and Human Resources director
• An additional inspector in the Building Code Enforcement Department
• A Planning & Zoning Department administrative position
• Two Public Works Department maintenance positions
• A customer service position for Bass Lake Park
• A cross-connection coordinator with Public Works
• A laboratory assistant at the Wastewater Treatment Plant.

Click here to view a complete copy of the 2004-2005 Town budget. Or, for more information, contact Holland at (919) 557-3910.

Town of Holly Springs - PO Box 8 - 128 South Main Street - Holly Springs, NC 27540 - (919) 552-6221 - Holly.Springs@hollyspringsnc.us