HAMLET — City Manager Matthew Christian, who’s been on the job less than a year, was able to develop a budget that doesn’t raise taxes or fees for residents, despite financial woes.
The $8.6 million budget keeps the property rate at $0.76 per $100 of value — using $419,760 to manage the shortfall.
“Since Richmond County Commissioners voted to change the sales tax distribution method from per capita to ad valorem on April 6, 2020, cities were forced to increase taxes and cut critical investments,” Christian said in the budget message. “Nearly all large capital purchases were cut” for the second consecutive year.
When presenting the budget, Christian told the council that the impact of the change was “grossly miscalculated and misrepresented to the citizens of Richmond County.”
Those cuts included new vehicles for the police and fire departments as well as a new streetsweeper that council members said during a budget workshop has been needed for several years.
Christian said other cuts included “social investments” like the library and community events.
“These cuts hurt our operations and community deeply,” Christian said. “These fundamental cuts are unsustainable and have put all the City of Hamlet on a path to financial insolvency. Our mission is to maintain current levels of service as long as possible while advocating for the City of Hamlet’s best interest.
Public safety accounts for the largest chunk from the $5.2 million General Fund budget, with the police department receiving $1.6 million and the fire department allocated just over $1 million. That’s more than $100,000 less than the combined requests from the departments.
Other expenditures in the General Fund include:
- $40,320 for the governing board (a $6,500 increase from the current year)
- $497,150 for administration ($15,410 decrease)
- $187,250 of the Depot/Museum complex ($14,000 increase)
- $92,300 for finance ($4,820 increase)
- $216,400 for public buildings ($16,750 decrease)
- $382,500 for streets and highways ($7,700 increase)
- $262,250 for sanitation ($1,400 decrease)
- $130,700 for the Senior Center ($19,350 increase)
- $256,500 for recreation ($15,720 increase)
- $175,900 for horticulture ($1,600 increase)
- $279,750 for non-departmental ($29,890 decrease)
The budget estimates to receive $920,000 in sales tax revenues, which Christian said is a “major drop” from previous years.
Despite the cuts, the budget will provide investment for the Wastewater Treatment Plant expansion and capital reserve funds for new water meters.
“These two projects represent key investments in the long-term fiscal and operational sustainability of our Enterprise Fund,” Christian said.
While city employees won’t receive a cost of living adjustment this year, the budget does allow for a one-time $1,000 bonus.
Christian said the bonus was to “hopefully sustain us and keep people from leaving as we’re left behind.”
“Not all things cost money, and our employees are really valuable to us,” Christian said after the meeting. “The institutional knowledge and the service they provide is really second to none, and we’re going to do everything we can for them.”
Christian said the toughest part about putting the budget together was “being stuck.”
“This year, we’re right where we were last year and we’re going nowhere fast as long as things stay the way they are,” he said. “We’re in pure survival mode.”
Following a public hearing with no input, the council voted to approve the budget.
Councilwoman Abbie Covington thanked the city staff for the hard work and sacrifices made to balance the budget.
