Columbus council took a red pen to its proposed budget last week, making cuts to keep the property tax rate the same and reduce the proposed water and sewer rate increase from 20 percent to 5 percent.

Council approved the town’s budget for fiscal year 2010-11 last Thursday. The town approved the general fund and water/sewer fund budgets separately. The general fund was approved unanimously and the water/sewer fund was approved by a 3-1 vote, with councilman Michael Gage opposing.

Gage said last week that Columbus should have increased rates by 10 percent to give the town more of a cushion.

The town had also previously considered a two-cent property tax increase, but made cuts to keep the rate at the current 39 cents per $100 of property value, which includes an increase of approximately $8,000 for the town’s fire department after the county approved a 7/10 cent increase because of redistricting.

Columbus cuts will come at a cost to some employees in the public works department. The town decided to cut five hours per week for seven public works employees. Other savings came from cutting $40,000 previously placed in the contingency fund for the water and sewer department and another $10,000 proposed for professional services for a development agreement with Foster Creek. The town kept $5,000 in professional services for Foster Creek in its general fund.

The town has met several times this month to discuss the budget proposal. Other cuts considered last week but not approved included eliminating a public works position and either cutting half of the town’s health insurance contributions for all employees or making lower contributions to employees’ 401K plans.

The town was considering larger increases in water and sewer rates to avoid the necessity of continuing to use money from the fund balance to cover losses in the department.

The town received a N.C. Local Government Commission letter last year criticizing the use of about $34,000 from the fund balance to supplement the town’s enterprise fund last year. The town is expecting another letter this year because it expects to use more than $70,000 from the fund balance to supplement its enterprise fund this year.

The towns general fund budget for next year is $912,813. Its water/sewer fund was shaved last week from the previously proposed $1,136,900 to $1.046,024. The town kept $4,820 in contingency for the water and sewer fund and should have about $25,000 for contingency in its general fund.

No employee increases, bonuses, major equipment or major projects were budgeted for next year.

The new fiscal year will begin this Thursday.