Higher garbage fee, employee raises: What to know about City of Anderson's proposed budget

The city of Anderson could pay higher garbage and utility rates starting in July if the proposed budget passes but no tax increases are planned.

Anderson City Council unanimously approved the first of two readings of the 2022-2023's budget Monday evening.

The general fund plans to budget $34,572,869 million, a slight decrease in the current year's general fund.

For the current fiscal year, the city borrowed money for a capital lease and for recreation center improvements with a total general fund of $34,968,426 million.

Those types of payments won't be needed this year, making the general budget lower next year, finance director Margot Martin told the Independent Mail.

City council went on a retreat May 19-20 in Flat Rock, North Carolina to discuss the budget and must adopt it prior to July 1.

What the retreats are like: In 2020, recap of North Carolina retreat to strategize, discuss budget

The budget directs funds at projects identified by the council and provides basic municipal services. It does not include any tax increases or reduction in services for Anderson residents.

Budgeting is a year-long process that doesn't stop, city manager David McCuen said at city council Monday.

"A lot of work's been put into this document and we feel very comfortable with it," he said.

Here are the main takeaways from the proposed budget:

Higher monthly garbage fee for city residents

Monthly sanitation fees will increase from $4.50 to $5.50 per garbage cart serviced starting July 1, 2022.

Other Upstate cities charge anywhere from $9-$20 for sanitation fees, Martin said.

For city residents, taxes cover police, fire and sanitation, council member Tony Stewart said.

"I know we're not calling for a tax increase but again when you raise garbage rate fees, in my opinion," Stewart said, "that's a tax increase."

Regardless of calling it a fee or a tax, it's still an increase, he said.

City employees get raise to $15

The employee compensation plan, a study started in November, invests money into city employees, 58% of the budget. A lot of time was spent working through those funds.

All entry-level positions, across the platform from public utilities to recreation, in the city moved from $12.67 to $15 an hour.

"I think that's a huge thing, especially with what's going on in the economy," Martin said.

City Human Resources Director Donna Kazia said the raises should make the city's open positions more competitive.

Council member Luis Martinez II said city employees are the "backbone" of the city and he was happy to see attention brought to them in the budget.

"I was really impressed to see the way the city manages their finances," Martinez said. "I believe these employees have earned every penny of it and I'm glad to see them, to get those increases."

Certified police officers' starting pay will get a 7% increase to $42,000.

The city also added a new position for non-certified firemen to help with recruiting. Non-certified firemen will get $35,800 a year and certified firemen will have a starting pay of $39,000, a 13% increase from current pay.

Gas budget raises 47%

As the nation deals with higher gas prices, the city had to raise their gas budget 47% to keep up with gas for city vehicles like police cars and firetrucks.

That cuts into their operational cost that they could have done other things with, Martin said.

Improvements coming to two fire stations, City Hall Police division

Fire Station 3 will get a new roof and Fire Station 1 will get a pad replacement, the new budget accounted for.

The City Hall Police division will get facilities improvement and design as well. Six more police cars and various equipment will also be added.

Hospitality fund, building permits continue to see major growth

This year's budget is $4.2 million for the hospitality fund, an increase of $600,000.

"The hospitality fund still continues to do extremely well for the city of Anderson," Martin said.

Besides a growth in tourism, building permits from new businesses continue to bring in more money for the city.

"We are increasing the building permits budget by 59% due to the tremendous growth we've had this year," Martin said at the public hearing before city council.

The city is also increasing permit fees for new buildings, a fee that hasn't changed since 2001. Other neighboring cities are raising their permit fees, so the city felt it'd be a good time to adjust, Martin said.

"These proposed fees will allow the city to remain competitive and provide an additional $75,000 in budgeted revenues to help fund the new positions that we've proposed for the city's new developments," Martin said.

Utility rates on track for final increase in 5-year plan

The city plans to implement year 5 of the previously adopted rate path for utility rate changes of 6% for water and 3.5% for sewer.

Miscellaneous changes

The budget includes capital money carried over for projects like fire station 4 land acquisition and continued construction on a shared kitchen.

• Increase in operating expenses for gas (47% increase), health insurance (18.1% increase), property insurance (27% increase)

• City’s implementation of Community-wide comprehensive plan $223,530

• Implementation of sanitation fund rate change to $5.50 per garbage cart

• Funds allocated for sanitation route study to include the City’s future growth

• Updating the permitting and plan review fees – first change in fees since 2001

• Implementation of Employee Compensation Plan - $1.9 million – all funds

• Updating the Cemetery fees – first change in fees since 2014

Breakdown of the funds:

• General Fund $34,572,869

• Sewer Fund $14,476,360

• Water Fund $10,092,028

• Storm Water Fund $1,154,200

• Transit Fund $1,384,720

• Capital Replacement Fund $791,742

• Hospitality Fee Fund $4,212,714

• Parks & Recreation Fund $2,533,806

• Community Development Fund $2,078,908

• Sanitation Fund $2,410,155

• Cemetery Fund $551,571

• Accommodations Tax Fund $235,000

• Endowment Fund $50,000

• Perpetual Care Fund $40,000

• Total: $74,584,073

Sarah Sheridan is the community reporter in Anderson. She'd appreciate your help telling important stories; reach her at ssheridan@gannett.com or on Twitter @saralinasher.

This article originally appeared on Anderson Independent Mail: City of Anderson 2022 budget: fees, changes, no tax increase