The Canton City Council on Thursday night received the draft 2011 fiscal year budget, which will be reviewed again on Aug. 5 before a vote is conducted on Aug. 19.
The proposed budget, which begins in October, calls for $31.7 million in expenditures, but revenue is estimated at $30.4 million. The draft budget is an increase from the current budget of $26.7 million.
The current millage rate of 6.8 mills was used to formulate the proposed budget. The rate will be set later this year, and City Manager Scott Wood said there are no plans for an increase.
The $1.3 million shortfall in the proposed budget is in the water and sewer fund and is attributable to debt payments.
Wood said he anticipates the bulk of that amount will be covered by about $1 million in reserves built up during the past year.
For the remainder, and to make the fund self-sufficient going forward, the council is considering a water rate increase. A request for qualifications has been made for companies interested in conducting a rate study to help the council determine by how much to raise fees.
"There is no question we have to do something" about the water rate, Wood said. "We have not established what that number should be."
The draft budget is larger because of an influx of state government funds for road and sidewalk projects. The spending is growing from $708,000 in the current budget to about $4 million in the proposed budget.
The additional funds will pay for streetscape and sidewalk projects on Waleska Street, Marietta Road and Hickory Flat Highway as well as streetscapes from City Hall to Main Street and intersection improvements on Riverstone Parkway.
Wood said the draft budget also includes a $500,000 "contingency" fund, but the council needs to establish a separate, formal reserve fund.
"The money is a little more safer that way," he said of a reserve fund.
The proposed budget does not add or eliminate staff and allows for merit salary increases of as much as 3 percent.
Also on Thursday, terms for a new four-year contract with Waste Management for sanitation services were approved.
The council put the contract out to bid, and Waste Management, the current provider, came back with lower costs. Those include lowering the charge to the city for curbside residential pickup from $13.37 per customer to $10.15.
Despite the decrease in charges, reduced rates will not be offered to customers, Wood said.
The council on Thursday also talked about a proposed charter amendment requiring the mayor and council members address the city manager with issues instead of directly contacting other city employees.
Councilwoman Pat Tanner brought the proposal up as a way to avoid "six people going to a department head and giving them a directive."
Mayor Gene Hobgood said the amendment would be a waste of time and money because it couldn't be enforced and would lead to a more closed government.
The mayor and council, he said, should not control employees, "but they should have access."
The council voted 4-3 to table taking any action until the Aug. 19 meeting, with Councilwomen Tanner and Amelia Rose and Councilman Bob Rush opposed to the delay.
Councilman John Beresford said the council would be removing its "cloak of responsibility" by approving the charter amendment.
Rush disagreed, saying the amendment wouldn't preclude council members from talking to employees for inquiries and investigation.
"I don't see the harm," he said about the amendment.
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