Saluda city residents who attended Thursday evening’s town hall style meeting presented by the commissioners, learned more about how their home’s water is delivered, the factors affecting its cost; financing street paving and sidewalk repairs; progress on renovations at city hall; and how the city’s annual budget is distributed.
Saluda City Finance Officer, Ron Cole, and city administrator Erny Williams each presented sets of figures and charts representing Saluda’s day-to-day operations, to help residents learn where and how their tax money was being spent, and where other funds originate.
Residents also learned that their taxes should remain at the present level for some time.
“We don’t have any tax increase planned,” explained Mayor Fred Baisden. Officials explained that state, including sales tax, collected in Saluda, are sent to the state government, which distributes those funds to municipalities based on population.
City officials explained that their goal Thursday evening was to help create transparency for residents. Attending, in addition to Williams and Cole, were Baisden, Mayor pro tem(pore) Lynn Cass, and Commissioners Carolyn Ashburn, Leon Morgan and Mark Oxtoby
Saluda’s mission statement reads, “The City of Saluda is committed to preserving its community values, historic character and natural environment.”
Water delivery to residential customers ranks high on the list of services the city provides. Because Saluda purchases all of its water from Hendersonville, N.C.and has the lowest number of customers of any local service area, residential costs are higher than those of some neighboring areas, but lower than others.
Baisden explained that even if customers received their water free, their annual savings would amount to only about six dollars per year, as most of the cost is in the delivery and storage systems.
“The cost of water is not the cost of water,” Baisden said.
Cole presented figures noting that Saluda’s general fund expenses are $1,072,060, broken down mostly as follows: administration- – $379,145; public safety– $379,660; transportation and parks–$159,360; buildings and sanitation– $124,660. In addition city water and sewer costs are $584,850, or total spending of $1,656,910.
Purchased water costs are $108,225. Cole explained that the cost of water is minimal, with most costs coming from maintenance and transport.
Baisden said that the only way to reduce residential water cost is more customers, but, since water users need to be within city limits, officials and attending residents alike agreed that doubling, for example, the city’s population, would create additional issues, and was not what they wished to see.
Williams explained that in Saluda, the average water customer pays about 1.87 percentof his or her annual salary for water, while in Tryon, that figure is 2.48 percent.
Figures for Columbus (1.96 percent) and Lake Lure (1.57 percent) were also given. Williams explained that Columbus officials are not charging enough to recover costs in possible drought situations.
Saluda’s water service population is 670. Neighboring areas include Hendersonville (26,493), Columbus (808), Tryon (2,632), Lake Lure (776) and Laurel Park (2008).
Baisden and commission members also explained that while North Carolina law requires that municipalities carry a minimum fund balance of eight per cent, Saluda’s is currently 41 percent, enabling officials to better fund future projects without raising taxes. Current board members have agreed to keep the fund balance above 26 percent. The fund balance is an accumulation of revenue to be used in future years by the city council. It is based on fund accounting, which requires separate self-balance accounting entries to track separate fund revenues.
A fund balance is a portion of general operating revenues kept in a general fund reserve or “rainy day” fund.
Cole noted that Saluda’s fund balance has been as high as 51 percent.
Noting that the fund balance is higher than required by law, Morgan assured those present that “We’ve been good stewards.”
Baisden explained, “We’re trying to fix things that need to be fixed . . . to keep from having to raise taxes.”
Commissioners noted that a previous enacted tax increase to keep the bund balance above the required eight percent.
Williams illustrated various city operations, including street paving and sidewalk repair, the updating of the city’s equipment, and renovations to the historic City Hall building. Williams noted that the building is in “remarkable shape,” considering its age. He also noted that local architect John Gardner has volunteered some $10,000-$20,000 of his time by producing drawings to aid the renovation.
Baisden said that, regarding th structural integrity of the building, the city is trying to do its best so that one hundred years from now, someone will be spared the trouble of similar renovations.
Cole had explained that the city contracts some of its services, including fire protection, and rubbish removal. Public safety (fire and police protection) costs are $379,660, explained Cole.
One resident, David Hawkins of Henderson Street, praised the trash removal by Republic Service of Asheville. “They’re fantastic,” Hawkins told the board. “You can’t beat these people.”
In response to a resident who asked whether she could paint the top of a fire hydrant located in front of her house, Williams noted that the hydrant tops are color-coded to show fire fighters each hydrant’s flow rate. So, re-painting of that top would not be permitted.
Another resident, Elena Robson suggested that the city should have a sidewalk plan for Church Street. When she suggested that enough room might not exist now for a sidewalk, Williams said that sufficient room will exist for a sidewalk there.
Williams also illustrated the costs of trucks and other equipment purchased by the city. He also outlined costs of replacing water lines repairing streets.