The New Bern Board of Aldermen kicked off city budget discussions with a look back at fiscal year 2023-24 spending and a glance ahead at major projects planned for the new year.
During the board’s Dec. 12 work session, Kim Ostrom, City of New Bern director of finance, provided an overview of the city’s revenues and expenditures thus far for fiscal year 2023.
Looking at the city’s overall budget, Ostrom said finances are trending as expected and comparable to the prior year at this time. She said the originally budgeted General Fund revenue of $48,943,720 had been revised to $56,892,283, with $19.9 million, or approximately 35% of that amount already spent.
Turning to tax collections, Ostrom said Ad Valorem Tax revenue stood at $8,829,979, with about 52% of that received. She said state distributions of sales tax revenue are experiencing a six-month delay, which is not unusual, she noted. Ostrom said the city has collected two months of sales tax revenue thus far in the amount of $1,966,797, or about 17% of the budget.
-Revenues for the Water Fund have been revised from $12.7 million to $$12.8 million, with year-to-date expenses totaling $4,404,426, or 34%.
-The Sewer Fund has been revised from the original budget of $13.4 million to $13.7 million, with year-to-date expenses at $5,121,761, or 37%.
-The Electric Fund has a revised budget of $61.9 million from an original budget of $60.9 million and year to date expenses of $21,986,607, or 36%.
-The Solid Waste Fund has a revised budget of $4.4 million and year to date expenses of $1,460,760, or 33%.
-The Municipal Service District Fund tax collections, budgeted at $344,900, stand at $115,466. Parking fees in the district have been budgeted at $66,300, with year-to-date collections at $3,764.
Ostrom said the city added $21 million to its outstanding debt for fiscal year 2023-24, which currently stands at $55,565,789. Broken down, the city’s debt is:
-General Fund: $29,314,030
-Sewer: $8,875,667
-Water: $14,185,685
-Electric: $3,364,364
-MSD: $505,692
-Solid Waste $320,649
Ostrom also noted that in FY 2023-24 the city’s Sewer rates increased by 4.5% and the Water readiness-to-serve charge increased by $1.67 per meter per month. She said the city plans to conduct a rate study and address any rate adjustments in the next fiscal year.
Turning to the city’s financing over the last five years, Ostrom said the principal is $33,332,230, while interest stands at $8,618,259, for a total of $41.9 million.
Ostrom said the city’s largest financing project is the construction of the new Stanley White Recreation Center at a total of $8,847,813 (principal interest) for component A and $4,921,638 for component B, both of which are scheduled to be paid off by 2039.
The second largest financed project was city sewer improvements at $8,493,260, which also has a scheduled payoff by 2039
The City Hall Elevator Annex project financing came in at $4,792,320 and is expected to be paid off in 2037.
Payments for the Stanley White Recreation project, city vehicles and equipment, and a sewer revenue bond will begin in FY 2025, Ostrom said.
According to City Manager Foster Hughes, in FY 2024, the city is anticipated to pay just under $2 million in debt service, with that number rising to approximately $3.2 million in 2025 before falling to $1.9 million by 2030, he said.
Looking at future projects, Hughes said goals for the new year include:
-Applying for more grants to aid the redeveloping of the Greater Duffyfield and the Five Points corridor.
-Discussing and hopefully coming to an agreement on proposals for the development of city-owned property in the downtown commercial district, including the Old Days Inn property, the former railroad property at Hancock and South Front Street, the former Fireman’s Museum property, the land between the downtown traffic circle and the river, and the Hancock Street parking lot.
-The completion of the Riverwalk project.
-A public fishing pier at the end of Broad Street.
-Encourage the County Commissioners to commit to develop the former waterfront Shriners lot as an active open space area.
Hughes said other projects the city will be looking at in 2023 include resurfacing the streets in Pembroke and the East Rose Street flood gates and culvert project as well as culvert work on Simmons Street, both of which are scheduled to be completed by June 2025.
Recent discussions concerning construction of a new fire station in West New Bern are also scheduled to continue into 2024. Hughes noted that the fire department is currently working on a concept plan for the proposed station.
The Board of Aldermen will be holding budget discussions over the next several months. The recommended budget must be submitted to the city clerk for distribution by May 3. The schedule calls for the city manager to submit the recommended budget to the Board by May 14.
On May 28 a public hearing is scheduled for the budget and the final adoption by the board is set for June 11.
By Todd Wetherington, co-editor. Send an email with questions or comments.