3/26/04

Holly Springs Worth $1 Billion
Now is Time to Tell Town Officials How to Spend Next Year's Revenues

How much is Holly Springs worth? Try nine zeros! As of this January, the county estimated the Town's tax valuation to be more than $1 billion. That's the value of all the property in Town, put together. Because properties are taxed based on their values, and since the Town's tax rate is $.53 per $100 in property value, the Town should receive nearly $5.3 million in tax revenues next fiscal year, which begins in July.

In addition to property tax revenues, which make up about 45 percent of total revenues, the Town receives additional funding from the state sales tax, grants, Wake County, interest income, public safety efforts, fees charged for Town services and other sources. These revenues are reinvested in the programs that generated the funds.

The current fiscal year's budget allotted more than $2.09 million for public safety, $1.76 million for general government, $1.34 million for fire and emergency medical services, $1.5 million for parks and recreation, $1.94 million for sanitation and streets, $1.99 million for development, and $1.3 million for paying off debt.

Determining how the money received is to be spent is a five-month process. Because the Town is currently working on drawing up next year's budget, now is the time for residents to lobby government officials if they want to see a change in how their money is spent during the 2004-2005 fiscal year.

The Town has created a web link that will enable residents to electronically submit their comments to government officials. The link will be active through April 15. The public also can contact the mayor and Town officials by calling, e-mailing, writing or attending a council meeting. Contact information is listed on the Town's website.

The Town's budget is created through a multi-step process that begins in mid January with the Town's different departments creating budget requests for the next fiscal year. Each department submits a detailed plan of the funds it anticipates spending to the Town's Finance Department director, who organizes and compiles the plans into a departmentalized budget notebook. The Town manager then reviews the document, meets with each department and prioritizes goals for the next fiscal year, often cutting less essential projects from department budgets.

“Expenditures have to be less than or equal to revenues,” said Drew Holland, director of the Town's Finance Department. “That's where cuts have to be made.”

Once the manager creates a balanced budget, a copy is given to the Town Council, and another copy is given to the Town clerk, to be available for public inspection. This year, the Town is planning on posting the budget to the website at the end of April, as well. The Town councilmen review the budget, edit it and resubmit it to the Finance Department. After the final changes are made, in June the budget ordinance is officially approved by the councilmen during a Town Council meeting.

Holly Springs has seen exponential growth during the last decade not only in population but in revenues, as well. From a tax valuation of $23 million in 1990, the Town grew to $172 million in 1995 and more than $500 million in 2000. Last year, the Town was valued at about $940 million. The steep increases have continued steadily for the Town, among the fastest growing in North Carolina, during the past few years.

“This growth is not standard for most Towns, but it has become a standard for Holly Springs,” Holland said.

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