Morganton City Council approves budget with steady tax rates, discuss storm drain repair project

With no objections and no surprises, the Morganton City Council gave unanimous approval Monday night to a $95 million budget for the upcoming fiscal year.

The decision followed a public hearing that drew no speakers for or against the plan. Council members had combed through the details during a June 2 workshop, paving the way for swift adoption this week.

Highlights of the budget include steady property tax rates at 50 cents per $100 in value. The downtown district tax rate will also remain the same at 12 cents per $100 value. Electric rates will remain the same as well.

As for increases, water rates will increase 10% and sewer rates will increase by 5%, both on volume charges. With both increases, City Manager Sally Sandy said that for a normal household that uses 5,000 gallons of water, the increase would be less than $1 per month.

CoMPAS rates will go up $5 per month, making the total monthly cost $30. The increase is a pass-through from the higher rates local TV stations are charging CoMPAS to carry their broadcasts.

To help address the continuing competition for employees, city council also approved the inclusion of a 3% cost-of-living raise in the budget for city employees, which will go into effect July 1.

The city also held a second public hearing for the approval of the City of Morganton Community Development Block Grant (CDBG) Entitlement Program Consolidated Plan for the next five years until June 30, 2029. CDBG funds will be used for small-business loans, grants to eligible nonprofits, program administration, and public facilities improvements.

Sandy noted that the small-business loans and grants to nonprofits are very popular in Morganton.

Of the $242,470 projected in CDBG funding for the next fiscal year, nearly $80,000 will go toward public facility improvements, $30,000 will go to nonprofits, $90,000 will go toward loans for small businesses, and about $40,000 will go toward program administration.

STORM DRAIN REPAIR

The city council awarded a contract for storm drain repair to Country Boy Landscaping for the removal and replacement of approximately 490 linear feet of storm drainpipe in the areas of Bay and West McDowell streets.

The funding for the project, which is $629,643.17, is a combination of $500,000 from the general fund and $150,000 from CDBG funds. The city recommended $20,356.83 as a contingency for the project.

“When you’re in the ground, you don’t know what you may run into,” Sandy said, noting that staff will not spend the money if it’s not needed for the project.

Sandy said the project could start as early as mid-July, and she doesn’t expect many traffic concerns. Some Concord Street closures are possible. The work on Concord closest to Morganton Day School should be completed while kids are on summer break and crews have 120 days from July 1 to finish the rest of the project.