The council will hold a public hearing and is expected to adopt the budget at its Nov. 19 council meeting. Council member Jeremy Smith was absent.
Last year’s budget was $6.2 million and the 2010 budget was $5.1 million.
The city operates on a calendar year.
Most of the increase over last year is from a large upswing in the city’s capital grants fund, which city manager Rob Logan said is significantly different from last year’s budget.
The city only budgeted $50,000 in capital grants last year from a Liveable Centers Initiative grant from the Atlanta Regional Commission, but has $3 million in for the 2013 budget.
Logan said the city is anticipating another LCI grant for the city’s sidewalk project slated for Holly Springs Parkway and Hickory Road for $2.2 million.
Additionally, the city plans to receive a Congestion Mitigation and Air Quality grant that will start in fiscal year 2013 for the design portion of the project.
The two grants will be supplemented by a transfer from the SPLOST IV fund for local match of funds at $718,081.
In last year’s capital improvement fund, the city had a deficit fund balance and transferred $211,857 in funds to make up for the shortfall, but Logan said the city does not anticipate any revenues or expenses in capital improvements.
The city’s proposed general fund budget is $3.96 million.
“Primarily, the general fund is the same as the previous year,” Logan said.
However, Logan said a few changes in the budget will take place as the city is moving code enforcement from administration into the police department and adding a position for another officer, as well as moving economic development activities to employee administration.
“The net increase is about $80,000 total over last year’s, and that’s the result of all of these changes in effect,” Logan said.
Logan said there are no changes in the city’s hotel/motel tax fund for this coming fiscal year.
The city is budgeting less for its parks and recreation fund than last year at $186,000, but last year’s budget included a provision to transfer much of the funds to the capital improvements budget, Logan said.
The city’s SPLOST III fund, which ended June 30, has $926,645 in revenues used to pay for the Downtown Development Authority’s downtown project.
“All of that is for debt service and that will retire all of the debt for the downtown property,” Logan said.
Additionally, the SPLOST III expenditures include a special assessment for Crestmont totaling $29,820 as the city paid to adopt the streets in the proposed neighborhood after the developers went bankrupt a couple of years ago, Logan said.
In the SPLOST IV fund, which started July 4, the city anticipates almost $1.95 million in total revenues. Logan said the funds will be used for several needs, including $45,000 in police equipment and $75,000 for public works equipment, $194,250 for replacement police vehicles and $750,000 for sewer infrastructure updates.
Chief Ken Ball said the funds will be used to replace six Crown Victorias with models dating between 2003 and 2007.
“Our current plan is to retire the six Crown Vics in the fleet,” Ball said. “As the fleet ages, the call for maintenance dramatically increases.”
Finally, the city’s stormwater fund is almost $16,000 less than last year’s budget because of a stormwater project on Holly Springs Parkway near Ronnell Road that was in progress at the end of the previous fiscal year that overlapped, Logan said.
The council also went into executive session to discuss real estate and potential litigation, but took no action upon returning.
In other business, the council:
* Read a Lung Cancer Awareness Month proclamation, as approved at the previous council meeting, and presented it to former city council member and seven-year lung cancer survivor Jacqueline Archer, and discussed;
* Proposed amendments to the Police Department’s take-home vehicle program in its operations manual;
* Proposed amendments to City of Holly Springs Official Code applying to streets, sidewalks and other public places; ad valorem tax; and utility franchise tax;
* Consolidating franchise agreements with Adelphia and Time Warner to one agreement with Comcast;
n The 2013 Local Maintenance and Improvement grant program for approximately $58,000 to repave Palm Street, Holly Street, Morgan Way, Morgan Springs Court, Springs Drive and P. Rickman Industrial Drive;
n A resolution to establish the compensation schedule for the various boards, commissions and committees appointed by the mayor and council;
n Proposals for bi-annual preventive maintenance service on 20 HVAC units, with a staff recommendation to award services to Marietta-based Perfection Air for a total of $1,524;
n The 2013 meeting dates;
n A conditional use permit for an automobile repair and used-car sales establishment at 2845 Holly Springs Parkway; and
n Proposed amendments to city of Holly Springs Development regulations pertaining to sidewalks in compliance with the Americans with Disabilities Act.