The Tyrone Town Council June 16 adopted a $3.42 million General Fund budget for FY 2012 that begins July 1. The budget that included a 2 percent cost-of-living increase for town employees will allow the millage rate to remain steady at 2.89 mills.
The adoption of the budget leaves Tyrone with $4.6 million in certificates of deposit and cash in reserve.
The $3.427 million budget included an increase of approximately $250,000 over the current budget. The bottom line, Town Manager Richard Newbern said in a previous meeting, is accounted for by increases in health premiums and grant-assisted capital projects.
Those projects include a $100,000 set-aside for stormwater maintenance, $80,000 for upgrades to the tennis/basketball courts at Shamrock Park, $45,000 for a pedestrian bridge at Shamrock, $60,000 for entrance improvements to the town, $92,000 for resurfacing projects, $15,000 for erosion control at Handley park and $6,000 for sewer drain fields at the police department. Of the $398,000 total, Newbern said the cost to the town is expected to be $263,500 since the remaining $134,000 would be covered by grant subsidies.
Also contributing to the increase over the current year was the two percent cost-of-living increase to town employees that totals $33,643.
The budget allowed for a projected five-mill decrease in the tax digest.
The budget also included the use of approximately $200,000 from the town’s cash reserves. And while that amount might be large in some municipalities where reserves for 3-6 months operating costs are a reasonable goal, Tyrone after the $3.42 million budget adoption still maintains $4.6 million in CDs and money market accounts.
Newbern at a previous budget work session said department heads had worked hard to identify every cost-saving measure available to reduce their operating costs by three percent.
“Most departments have been able to meet this goal of a three percent operational cost reduction,” Newbern said. “This is on top of a three percent reduction experienced with the last budget cycle. Town departments have done a good job to maintain services in a tight budget environment.”