Marshall approves $1.50/hour raise for employees in 2023-24 budget, no tax hike

MARSHALL - The Marshall Town Board of Aldermen and Mayor Nancy Allen approved a raise for all town employees during a special meeting June 26 in which the board approved Town Administrator Forrest Gilliam's proposed 2023-24 budget.

Marshall allocated $1.17 million in its General Fund and maintains the existing property tax rate of 49 cents per $100 valuation.

In his budget message, Gilliam said General Fund revenues come from a variety of sources, with the property tax and the sales and use tax comprising roughly 80% of General Fund revenues.

The town's Water and Sewer Fund operates independently of the General Fund and is an enterprise fund that draws from charges to customers for water and sewer service.

While the town's 2023-24 budget expenditures allocate a 25% decrease, the town administrator said that is "misleading," as the town's current budget accounted for a one-time project for repairs to Fortner Hollow Road.

"If you just look at what's continuing expense, it's about 5.5% higher than the current year," Gilliam said. "That is not because any taxes are going up. It's because of increased valuation of utilities, and also the people who've made improvements to their property. Nobody who hasn't made any improvements will see any change until there's a reval(uation). It's just those who've renovated, built, added on or significantly changed their property that's increasing some of our property tax revenue."

According to Gilliam, an increase in revenue from the sales tax, driven by consumer behavior and product inflation, also contributed to the budget increase.

"This budget really prioritizes funding for our current employees with a cost of living increase," Gilliam said. "It also prioritizes some additional services, where we have those additional investments."

The budget includes an increase to part-time salaries in the police budget, and increases the amount budgeted for the fire department contract.

"The police budget for part-time salaries is increased by 44% ($7,023) to increase the pay rate for reserve officers and fund additional fill-in and supplemental patrol for the police department," the budget message said. "The contract for the Marshall Community Volunteer Fire Department is increased by 7% ($6,000). The total $96,000 budgeted for the fire department is the equivalent of the $.08 in property tax revenue. The $.08 matches the fire tax paid by residents who live outside of town but within the Smoky Mountain Fire Tax District."

The budget also continues funding for a part-time public works position that was added in fall 2022.

The budget allocates the following General Fund expenditures:

• Police - $375,000.

• Administration - $263,000.

• Streets - $181,000.

• Governing board - $111,000.

• Fire department - $96,000.

• Contingency - $40,000.

• Planning and zoning - $38,000.

• The Depot - $18,000.

• Recreation - $13,000.

• Elections - $10,000.

Water and Sewer Fund

The town's Water and Sewer Fund budget of $854,000 is 4% lower than the current year's budget.

The increase is mostly due to a one-time purchase of a vehicle in the current year's budget, according to Gilliam.

The Water and Sewer Fund includes a 2% increase to water and sewer rate charges.

"This is based on inflationary costs for personnel," Gilliam said. "The items that we've purchased, most of our materials that we buy have gone up significantly. Then also, our Water and Sewer Fund, but we need to be investing more back into those ongoing repairs. (Maintenance Supervisor) Jamie (Chandler) and his crew have done a really good job doing an ongoing maintenance program."

Beginning July 1, the water and sewer department will bring in-house the operation of its water system and wastewater systems. Byers Environmental, a company the town has worked with for 14 years, will continue to contract on a limited basis as a consultant.

"Funds are budgeted for a full-time operator of the wastewater treatment plant, though the initial plan is for duties to be reallocated among existing employees on a six-month to a one-year trial basis," Gilliam said in the budget message. "The net budget effect after contract reductions and increases to employee salaries from increased duties, including the full-time treatment plant operator, is an increase of $4,400. If the trial plan to reassign duties is successful over the next year, there will be a savings of $30,000 to $50,000, to be considered in the budget for FY 2024-25."

The Water and Sewer Fund also includes a 10% increase to electricity costs ($5,500) and transfers $40,000 previously used to pay rent for the town's wells to capital outlay for reinvestment into the system.

The Water and Sewer Fund allocates slightly more than $27,000 in contingency to cover unanticipated issues that arise throughout the year.

The Water and Sewer Fund budget allocations are as follows:

• Water and sewer operations - $766,000.

• Wastewater treatment plant - $61,000.

• Contingency - $27,000.

The Marshall Town Board of Aldermen's next meeting will take place July 17 at 6 p.m. at Town Hall, 180 S. Main St.

This article originally appeared on Asheville Citizen Times: Marshall budget: $1.50/hour raise for all employees, no tax hike