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Tyrone adopts budget with no millage increase

There was no fanfare last week as the Tyrone Town Council adopted the $3.15 million FY 2010-2011 General Fund budget that took effect July 1. Council members said they would keep the millage rate steady at 2.89 mills.

The budget actually represents a 3.5 percent increase, or $106,005, that was attributed to increases in employee health insurance, pension benefits and a $61,000 capital expenditure for drainage improvements on Castlewood Road, according to Town Manager Richard Newbern.

Specific to the employee expenditure increases, Newbern said the town is seeing a 15 percent increase in health insurance and a 25 percent increase in worker’s compensation along with increases in pension benefits.

The council was told to expect an 8 percent decrease in property tax revenues later this year. Despite the decrease, the council is expected to hold steady on the current 2.89 millage rate.

Newbern said he is expecting an approximate 8 percent reduction in property tax revenues. That decrease will be offset by using $197,100 of the town’s reserves and through a proposed 3 percent reduction in spending in town departments.

The town after the use of nearly $200,000 in reserves will still have $3.05 million in reserves.


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