BY DEBBIE PAGE
During its annual budget retreat this week, the Troutman Town Council reviewed Town Finance Director Justin Mundy’s proposed budget, which was created with input from the March strategic planning session, department heads, and elected officials to meet each department’s needs to best assist residents.
Town Manager Ron Wyatt opened the session, saying that being “frugal is key while building a solid foundation” for the town and its future. He pointed out that though the budget is increasing significantly, the percentage of increase is still smaller than the percentage of the community’s growth.
Troutman also draws many visitors. Over 100,000 people visited the town park last year, and the population triples each day when county children and parents come to the five public schools located in Troutman.
Wyatt said the department directors have clear visions of what they are trying to accomplish to better serve Troutman citizens, carefully planning to efficiently use resources for maximum benefit.
The town’s growth has been astonishing. Wyatt said the town had 2,900 residents receiving water and sewer last year; now that number is 3,900, due to a 33 percent increase in residential units in one year. This growth affects every town department.
Wyatt added that the planning department is starting to get a lot of business inquiry with that growth since they look for a certain population and rooftop numbers when considering expansion to a new area.
However, this growth is presenting utility challenges, causing the town to consider a pause in residential development until those issues are addressed.
UTILITY FUND
The cost of water and sewer service has gone up exponentially for every municipality, said Wyatt. Costs are about 250 percent above what they were before the COVID shutdown, he said.
Because it operates independently, the utility fund is set up to be a break-even enterprise with any excess used for a clearly defined future cost or capital need for the utility system.
The town changed its policy to increase deposits on water and sewer service and to make landlords responsible for any unpaid bills left by renters, which has cut collection write-offs by half.
Wyatt said the town’s last water and sewer rate increase was three years ago, when council hiked rates by 18 percent because the utility fund had been losing money since the rate had not increased in the past five or six years to match rising water and sewer costs.
That 18 percent increase caught the town up to cover past costs and a bit on top to account for continually rising costs. Wyatt said last year water costs rose 4 percent, with an additional 3.6 percent increase this year.
“Right now, we are 7.6 percent behind,” he said.
To avoid future large increases, the council agreed to revisit the rate every three years. To break even for the past two years and the projected increase this coming year, Wyatt said rates would need to rise a minimum of 10 percent.
Council member Nick Jaroszynski said he agreed with the 10 percent increase to catch up, but asked going forward that the council raise the percentage of increase each year to match costs instead of larger, catch-up increases every three years.
Wyatt said Statesville’s increases in water rates for its residents may also affect the town’s water costs.
Utility Revenues/Expenses
Mundy reiterated that the Utility Fund is run like a separate business, a stand-alone from the town’s general fund and budget.
He expects utility fund revenues to increase in 2025-2026 to $8,486,140 from $6,623,440 in the current budget year. He noted it is difficult to project water and sewer use on historical data with the town’s growth, so he was conservative in determining his revenue numbers.
The revenue increase came from additional customers online and increases in availability fees.
Expenditures include $961,474 for staff salaries and benefits, IT, departmental supplies and contracted services, $1,418,908 for capital items, $5,880,558 for water and for sewer treatment and operating costs, and $225,200 for contingencies for emergencies like line breaks or pump breakdowns.
GENERAL FUND REVENUES
The proposed budget maintains the current property tax rate at 50 cents per $100 valuation.
The 2025-2026 proposed general town budget projects $13,934,120 in revenues next year, up from the $11,467,247 in the 2024-2025 budget. Property tax collections are estimated at $9,172,450, along with about $1,700,00 in expected sales tax revenues. Other revenues come from various fees, interest, reimbursements, rental income, other taxes, and state aid.
Mundy noted that although the state is warning of falling sales tax collection, the Iredell County area has not seen this decrease. “Iredell County is still growing. Though the Raleigh area has seen some drop-off, we have not see sales drop in Iredell County. I’m being conservative but realistic and projecting them as accurately as possible.”
GENERAL FUND EXPENDITURES
Governing Body
Governing body expenditures are budgeted at $217,399. This budget item includes $44,031 for elected officials stipends, $60,000 for attorney fees and the required annual audit, and funds for training, travel, advertising, departmental supplies, and dues and subscriptions.
This section also has $50,000 budgeted for downtown development, design services, software, and website services and $18,000 for special events, such as the MLK Breakfast, wellness supports for employees, and other events.
Administration
The administration department’s proposed budget of $934,766 includes $390,535 in salaries, including half of the town manager’s and finance director’s (other half from utility fund), the town clerk, and the human resources director.
Employee group insurance and retirement ($138,855), building and grounds maintenance and repair ($60,000), tax collection costs to the county ($148,500), equipment replacement if needed ($50,000), and software and payroll services ($40,000) are the other bigger ticket items in this department.
Mundy said that retirement expenses for all employees are going up 1 percent.
Wyatt noted that their group insurance cost is going down because of the emphasis on employee health, including gym memberships, mandatory wellness sessions and physicals, counseling services, and weight loss and diabetes management services.
“Healthier employees means better rates,” he said.
Passport Office
The Passport Office is projected to bring in $116,500 in revenues in 2025-2026 while only spending $74,355 in operation costs. The office has four part-time certified employees and is open evening hours to serve the public.
The office salaries are $40,000, with the rest of the expenditures going toward training, phones, postage, utilities, and supplies.
IT
IT costs are projected to rise from $216,900 this fiscal year to $260,500 next year. Mundy said the additional cost is due to the replacement of an aging server for the police department and new IT services for Parks and Recreation for registration and facility rentals.
Council member Paul Henkel thanked Wyatt for “bringing us into modern technology from the Dark Ages. We are now state of the art.”
The town added cyber security services last year to protect the town from hacking into its computer systems, a problem occurring across the nation.
Elections
Mundy added $3,500 to the budget this year to cover municipal elections this November. The town contracts with the county to provide election services, which is at a lower cost than having to purchase and maintain voting machines for local elections.
The council also unanimously voted to raise candidate fees to 1 percent of the office’s salary, as allowed by the state, starting with this fall’s election. These fees go back to the county to help cover election costs.
Henkel said that raising the fee will help defer costs and ensure that candidates are serious, not just wanting to see their name on the ballot.
Planning and Zoning
The Planning and Zoning Department’s projected budget is increasing to $1,100,566 from $857,442.
Planning Director Andrew Ventresca requested a new position for his department, in addition to the current director, associate planner, and code enforcement positions, raising salaries from its current $267,449 to $339,406.
This new position would require an engineering background to work with both planning and public works on stormwater, soil, and other issues.
Wyatt said the town will soon consider employing a full-time engineer. The planning department currently contracts approximately $350,000 per year (most of which is reimbursed by developers) for engineering services from West Consultants.
This budget increase includes $80,000 in additional funds for special projects to conduct a year-long future land-use plan process, including looking at water and sewer capacity needs. Only the Future Land Use map was updated a few years ago.
Police
The Police Department budget is projected to increase from $3,126,857 to $3,651,785, an increase of of nearly $525,000. This increase is mostly to cover the salary and costs of adding two additional officers to keep up with increasing call volume and funds for creating career development steps to increase officer retention.
Increasing insurance (up $30,000), retirement (up $95,000) and vehicle repair and maintenance (up $15,000) costs are also affecting the department’s budget.
A new item is the addition of a stolen property information service.
The department is also purchasing three additional vehicles and equipment at a cost of $258,450 in the proposed budget.
Street and Maintenance
The street and maintenance budget is increasing from $1,029,441 to $1,421,970, mostly due to an increase of $375,000 for contracting services to conduct numerous street repairs and additional parking area. The department employees a mechanic and street technician and has one open position.
Debt Service
Annual debt service payments continues to decrease, falling from $434,838 to $373,254 in 2025-2026.
Wyatt said the town took advantage of low-interest loans when the rates were lower than the interest return of the town’s fund balance (savings). With rising loan interest rates, the town has adopted a pay-as-you-go approach.
He added that renters in some of the town’s acquired properties, included in this debt service, help offset acquisition costs.
Sanitation
The cost of limb and leaf pickup is covered by the town at a projected cost of $175,000 next fiscal year.
Mundy projects collecting $777,840 from residents in garbage and recycling fees, which is the cost of the Waste Pro contract. He emphasized that the town makes no money and just passes on the cost of providing these services.
The collection of about $93,000 more in fees over last year is because of the increase in the number of residential units being served.
Wyatt said he is meeting soon with Waste Pro representatives to reiterate expected levels of services after complaints of missed service.
Parks and Recreation
Proposed Parks and Recreation Department expenditures are expected to increase to $940,889 from $752,891. Most of that increase is from the addition of employees to maintain the town’s increasing property, greenway, and park facilities.
Director Emily Watson requested $55,000 for park upgrades, including a proposed amphitheater project in ESC Park in partnership with a local nonprofit group. An additional $15,000 is being added for equipment for increasing youth sports offerings.
Watson said she received permits this week for the new concession stand and bathrooms near the baseball fields, so this project can now begin moving forward. She is unsure of the project timeline, which depends on contractor PS West’s availability.
Watson said that even with the addition of the baseball parking lot and the gravel lot across from the department facility in the past few years, parking is scarce at large town events. Additional parking is needed to keep up with increased park use.
The lighting project for the baseball fields and the park is still being considered. Wyatt hopes the state comes through with some funds to help with the project, which would allow the town to host more revenue-generating sports events.
Miscellaneous
Mundy proposed adding $200,000 to downtown development (for capital outlay on town-owned buildings), raising the line item to $600,000. Tax grants would also rise from $24,000 to $40,000.
Capital expenditures for buildings will rise from $165,000 this year to $600,000 in 2025-2026 to pay for renovations to the recently acquired Liat building near the fairgrounds. An additional $600,000 is being added from the capital utility fund for these renovations, which will include some Public Works Department uses.
Wyatt said the town is awaiting an architectural and design review of options for the 50,000-square-foot Liat building, which could include serving as the Town Hall (with the current Town Hall becoming the police department), a Parks and Recreation/gymnasium facility, or other options.
Transfers to Specific Funds
Mundy proposed continue adding $325,000 to the concession and lights fund, $1,275,000 to the new Town Hall fund, $70,000 to the economic development fund, $10,000 to the industrial recruitment fund, $100,000 to the greenway fund, $60,000 to the pocket park fund, and $250,000 to the capital project fund, as he had in the current 2024-2025 budget.
Mundy also budgeted $175,000 for contingencies in case an emergency (flood, storm, etc,) arises.
The greenway fund includes costs of adding sidewalks and associated right of way acquisition.
Wyatt noted that many generous property owners choose to donate the right-of-way since a sidewalk enhances a property’s resell value, the donation can be deducted for tax purposes, and sidewalks increase community safety and walkability.
However, Wyatt expressed concern about a law firm sending out letters to property owners benefitting from the Wagner, Rumple, and Talley Street sidewalk projects, encouraging them to ask for large sums for right-of-way.
The normal formula involves determining the value of the property (without buildings) and dividing by square feet to get a per-square-foot price and then multiplying that value by the number of feet needed for the right-of-way.
If right-of-way costs are inflated by greed, Wyatt warned the town will cancel the sidewalk project for that street and return any unused grant funds. He also said the town will likely name property owners who caused the project to be cancelled.
If the town uses eminent domain to acquire the right of way, the property owner usually gets about 10 percent of the ROW value, the manager said.
“Greed will end up getting you nothing,” Henkel added.