Pikeville approves 2011-12 budget
By Gary Popp
Published in News on July 1, 2011 1:46 PM
PIKEVILLE -- The Pikeville Board of Commissioners on Tuesday adopted a budget for the fiscal year starting today.
The town is set to operate with a $2,251,400 budget over the next 12 months.
Mayor Johnny Weaver said the budget represents the first time in nearly eight years that Pikeville is not planning to borrow from its own reserves.
"It is the first year we haven't approved to borrow," Weaver said. "We aren't planning it this time."
The town's tax rate will remain at 60 cents, nearly 4 cents higher than the revenue-neutral tax rate following Wayne County's property revaluation.
Weaver said the town's general fund has dwindled in recent years from $1.8 million to $400,000.
He said part of the loss comes from a drop in the rates of interest-bearing accounts.
"We get more money from a checking account than we are from an interest-bearing account," Weaver said.
Board Commissioner Lyman Galloway is also aware of the town's loss of revenue.
"One real simple thing that explains where the money went -- we used to make $70-, $80,- $90-, $100,000 interest on our money in the bank, now we are making nothing," Galloway said.
Board members have responded to the drop in revenues with conservative measures.
"This board has cut, cut, cut," Weaver said. "This board has done a good job as far as cutting money."
Weaver added that the county's estimate of increased property values in Pikeville at the same tax rate will not provide a watershed of funds for the town.
"The revenue difference between the 56 cents and the 60 cents isn't but $24,000. That's it," Weaver said.
Of the nearly $2.2 million budget, virtually all of the discretionary funds come from the $222,000 worth of property taxes.
Board members are allotting $205,975 of the property tax to the town's Police Department.
The funding of the police, which has been a divisive issue for years in Pikeville, continued to be a wedge issue minutes prior to the budget's adoption Tuesday night.
Immediately after the budget was adopted, Commissioner Dennis Lewis requested a special meeting to continue the discussion of removing a full-time officer from the police department. Lewis said that more than $30,000 could be saved if a part-time position replaced a full-time position.
The special meeting is planned for July 11 at 7 p.m. in the Pikeville Community Center.