6/22/05

Town Budget Set for 2005-2006 Fiscal Year
No Tax Increase for New Fiscal Year

During its June 7 meeting, the Holly Springs Town Council adopted the budget for the 2005-2006 fiscal year. The more than $13 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 four new positions. In addition, the utility fund budget will raise the base fee for water and sewer services by $.50 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 $6, will increase to $6.50.

During the 2005-2006 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, park improvement projects, and construction on a cultural center that will be attached to the Wake County branch library in downtown Holly Springs. Money for future capital improvement projects, such as a community center, sidewalk projects, wastewater treatment plant expansion and park improvements will continue to be allocated to reserve funds.

New positions funded during the 2005-2006 fiscal year are:

• Project Analyst for the Administration Department
• IT Technician for the Administration Department
• Public Works Technician for the Public Works Department
• Parks Maintenance Technician for the Parks & Recreation Department.

To view a complete copy of the 2005-2006 Town budget, visit the Town website at www.hollyspringsnc.us. Choose the Town Hall Departments button and select Finance. Click here to download the budget. Or, for more information, contact Holland at (919) 557-3910 or drew.holland@hollyspringsnc.us.

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