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Published: Jun 12, 2011 12:00 AM
Modified: Jun 11, 2011 07:14 PM

Towns could hike utility rates
Benson, Kenly to hold hearings
 
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Benson will hold a public hearing on its budget at 7 p.m. Tuesday, June 14, at the town's conference center, 303 E. Church St., Benson.

Kenly's public hearing is scheduled for 7 p.m. Monday, June 13, at Town Hall, 206 W. 2nd St., Kenly.

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Residents in Benson and Kenly will likely pay more for water and sewer starting in July.

Budget proposals for both towns call for higher utility rates to cover rising costs and pay for infrastructure upgrades. The proposals also hold spending steady as the economy keeps revenues down.

Benson's sewer rates would go up 15 percent - the last of three consecutive increases recommended to cover costs. Benson's water rates would go up 5 percent because of rate increases adopted by Johnston County and Dunn, which provide Benson's water. Also, the PGI plant has started a conservation program and buys less water from the town.

In Kenly, the town manager proposes to hike both water and sewer rates by 2 percent for in-town customers and 25 percent for customers outside the town limits.

Most will pay more taxes: Both towns will keep their property tax rates unchanged. Benson charges 53 cents per $100 valuation; Kenly residents pay 61 cents.

But because county revaluation has increased property values in both towns, anyone with a higher value will pay more taxes. Benson Town Manager Matt Zapp says revaluation will only add about $29,000 to the town's coffers next year. "The revenue neutral would have been less than a penny" off the current rate, he said.

Kenly's budget projects that its tax collections won't rise with revaluation - holding steady at $640,000.

No raises: Neither town will offer merit or cost-of-living raises to employees next year. No new positions will be created.

Both towns, however, are making changes to employee insurance plans. Benson is creating a health-reimbursement account to assist employees facing a higher deductible. With the town account, employees will have a maximum deductible of $1,500.

In Kenly, employees will see "a reduction in the annual deductible and an increase in the vision allowance," Town Manager Bill Summers said.

New spending in Benson: concession stands and bathroom construction at the new P.K. Vyas Park next to the old middle school, amount to be determined; a truck for the sewage-treatement plant, $20,000; two replacement police cars, $24,000 each; and a replacement truck for the electric department, $85,000. Also, the town will seek grant money for a $1.2 million water-line-replacement project. "We're excited about the fact that the grants are stacking up," Zapp said.

New spending in Kenly: Matching funds for a sewer-improvement grant, $40,000; new software for town-hall finances, $16,300; and an effort to outsource utility billing, $4,000. "Currently, the town uses an antiquated system of printing billing postcards on a dot-matrix printer," Summers said. "The current billing method is not cost effective and does not keep account information confidential."

Kenly would charge businesses: The town plans to restart its privilege license for businesses. An ordinance charging annual fees to businesses has been on the books since the 1980s, but no one's collected the money in years. "It became more of an administrative burden than the revenue at that time," Summers said. "We certainly have enough of a commercial base now."

The fee varies by business type but averages $20 to $25 a year, Summers said. He's not yet sure how much cash it would generate for Kenly.

colin.campbell@nando.com or 919-836-5768
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