The Saluda Board of Commissioners must make a few hefty decisions in considering  the city’s 2011-2012 budget.
Finance director Ron Cole proposed two separate budget options Monday, June 13, one of which included relocating city services from the current city hall building to a property known as the Ryan Boyle building. The Boyle property currently houses the business So Irresistible and is next door to Wildflour Bakery.
“What really got this engine going was a study of our existing city hall,” Cole said. “We found that it would cost us near $2,000,000… to bring up these 100-year-old buildings to code and safety.”
Back in December, an architect and historic preservation expert estimated the first phase of renovating the current city hall building would cost around $282,000.
The preliminary conditions assessment stated the building, previously restored in 1986, has suffered from deferred maintenance. Continual water infiltration through the roof, masonry and sheet metal has also led to damage on the interior as well as damage to the structural wood framing.
Saluda Mayor Fred Baisden said the city has previously passed up two other options to purchase property that would allow everything to be put together. This time he believes the town must jump at the chance to grab property that would keep city hall on main street.
“It’s within walking distance of the bank and the post office, plus there is parking and ample room to keep all city offices on the same floor. For me it’s a good thing long range for the city,” Baisden said.
Cole said a move of city services would not mean the town would abandon the city hall building.
In his budget proposal, $10,000 of debt service would be set aside for the beginning of a process for repairs and renovation to the historic building. This, Cole said, would allow the city to move into a newer facility while taking its time to renovate the former city hall building as funds become available through grants and fundraising.
“The board has not voted on it but they have instructed me to get a financing agreement prepared and an appraisal on the property set up,” Cole said.
If this plan and the corresponding budget are approved, the board would be required by law to hold a public hearing 10 days later.
To relocate city hall, Saluda must also submit an application to the local government commission stating the city’s need and the dollar amounts involved. The commission requires 45 days of deliberation before it renders a decision.
Taxes and rate increases
Saluda’s total budget appropriations equal $1,416,815, with estimated revenues at $932,430 and estimated expenditures at $1,073,870.
The city’s 2011/2012 budget options also include either a six-cent or a 10-cent property tax increase and a 3 percent garbage rate increase.
Saluda last raised property taxes by 8 cents in 2008. The city hiked garbage rates by 3 percent in 2009. Officials said the city has no plans this year of increasing water and sewer rates, however.
Cole said a 10-cent tax increase would leave an estimated 34.9 percent fund balance at the end of next budget year, while a six-cent increase would leave Saluda with 30.8 percent. No tax increase would lower Saluda’s fund balance to 218,392 or 24.8 percent.
Cole said Saluda experienced a 14-percent loss in its state collected revenues, back in 2008.  And he said while the town’s not losing ground, it’s not gaining either.
“Basically the economy has affected all local governments’ revenue streams,” he said. “That’s why I’ve given the board so many different scenarios [in the budget proposal]so they can make the decision as to how much they feel the town needs to survive in the event of an emergency.”
Saluda has faced such events before. He said two years ago the city expended $80,000 to repair damage from an ice storm.
“You have to have strength to get through those emergencies. It’s about having the financial strength until the aid kicks in,” he said.
Saluda will hold a public hearing June 30 to adopt one of the two budgets or a combination of the two, Cole said.