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Recession or not, Tyrone to hold steady at 2.89 mills

The Tyrone Town Council is on its way to adopting the $3.085 million FY 2010-2011 budget by the end of June. Expected decreased property tax revenues are being offset by 3 percent departmental reductions and the transfer of $136,000 from the reserve account. The 2.89 millage rate is expected to remain unchanged.

The council Thursday continued the discussion of the proposed General Fund budget that totals $3,085,674. That amounts to a $45,005 increase, or 1.5 percent, over the current year.

Information provided to the council showed that the increase stems from a 15 percent increase in health insurance, a 25 percent increase in worker’s compensation, increases in pension benefits and increases in capital expenditures.

Those increases, combined with what Town Manager Richard Newbern said is expected to be a 7.76 percent decrease in property tax revenue, can be offset by using $136,000 of the town’s reserves and through a proposed 3 percent reduction in spending in town departments.

Newbern said the millage rate is expected to remain steady at 2.89 mills, adding that departments have made serious efforts to cut costs.

The council will hold a public hearing on the budget June 3 at 7 p.m.

The budget will be adopted by the end of June.


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