Investing in the future: La Grange's financial plan for 2023-2024
LA GRANGE – The recommended fiscal year 2023-2024 budget for the Town of La Grange was approved on Monday evening. The recommended budget proposes that the existing tax rate of $0.532/$100 and all other fees and rates in the General Fund remain at current levels.
“The budget is fiscally responsible and reflects the needs of the town to meet its operational requirements, as well as requirements for the multiple capital projects previously approved by the Town Council that will continue through the coming year,” said Town Manager John Craft.
The budget includes $44,073,668 in capital and special project funds, which are earmarked for a variety of infrastructure projects, including the American Rescue Plan Fund ($834,668), Water System Capital Project ($6,407,900), Wastewater Collections System Capital Project ($12,521,000), Wastewater Treatment Plant Optimization Project ($10,280,000), and the Electric System Project ($3,750,100) which is nearing completion.
The total General Fund Budget has seen a moderate increase of $52,017 (2.51%) from the Amended FY22-23 Budget of $2,068,599, bringing the total to $2,026,582 for FY23-24.
Property valuations for the current fiscal year were based on total tax values of property in La Grange, amounting to $141,976,209, and revenues budgeted were based on the previous year’s collection rate of 95.38% as determined by the Town’s auditor. The Town Council also voted to dedicate funding equal to $0.02 of tax valuation of the tax rate in future recommended budgets to provide additional funding for street patching and resurfacing.
Among the highlights of the budget is a 6.0% cost of living increase for all employees, based on the annual CPI as determined by the US Department of Labor, and a continued 2% contribution to 401(k) for all full-time employees. This is part of the town's strategy to retain current employees and attract new ones.
The budget also includes provisions for a new part-time position in the Finance Department, to ensure adequate coverage, and restores funding for an open position in Public Services. The Assistant Town Manager position, previously approved by the Town Council, is also included in the budget.
Sales Tax Revenues remained relatively flat in FY23-24. Investment income, which was significantly higher than budgeted for FY22-23, is projected to remain near current levels through FY23-24.
Anticipating future challenges, the Town has changed the term of its health insurance plan from a July renewal to a December renewal to postpone the significant cost increases resulting from the Affordable Health Care Act’s elimination of the existing plan. The budget assumes a 20% increase in costs, based on comparisons of other recent renewals, and aims to maintain the deductibles for employees at current levels.
“We have no way of knowing what the actual cost will be when we renew in December, but the budget assumes a 20% increase in costs,” said Craft. “This estimate is based on best available information.”
Capital Outlay for the coming year includes the first of four annual debt service payments for the Service Bucket Truck and trencher, the third (of 4) annual lease payments for the new Garbage Truck, funds to purchase a new truck for Water Supply/WWTP, and a new vehicle for use by the Lenoir County Sheriff’s Department.
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