Otis Sandifer is the volunteer chief of the Denmark Fire Department, which recently bought a new fire truck. If approved, Denmark's budget would allot funds for a third full-time firefighter. GREG RICKABAUGH/STAFF

Water rates are expected to rise in the coming fiscal year, while homeowners will pay new inspection fees and businesses will be forced to provide their own trash bins.

But there is more good news than bad news in the proposed budget for 2002.

If it passes, taxes will remain the same, antiquated water meters will be replaced, police and fire protection will be beefed up and the city will launch a Web site to communicate changes to residents.

On Monday, city council will give first reading to the proposed budget, and it could be approved after second reading during a special meeting planned for July 5.

Written by City Administrator Pat Anduze, the new budget puts the city on track to recover from years of mismanagement.

The South Carolina State Law Enforcement Division, along with the FBI and the state Forestry Commission, continues to investigate possible irregularities in the way finances were managed in Denmark. A surplus of $600,000 in 1995 quickly turned into a deficit of more than $600,000 in 2000.

In April, the city made drastic last-minute cutbacks needed to complete the past fiscal year. The town laid off part-time employees and cut hours for full-time employees. Council members also eliminated their salaries.

The proposed budget puts full-time employees back on a 40-hour work week starting Thursday and rehires some of the part-timers. Council members must vote to reinstall their salaries.

More importantly, the proposed budget streamlines seven departments into three central areas, making the town more efficient.

''It's a start because there are some changes in reorganization there. We are also talking about making some capital investments in the new meters and resuming our own trash collection,'' Mrs. Anduze said Friday.

The water bill might have the biggest impact on residents. Antiquated meters that should have been replaced 10 years ago have undercounted the water use, meaning the city was giving away a large percentage of water without reimbursement. Replacing about 1,600 meters over six months means bills will eventually rise, Mrs. Anduze said.

''We will let them know that these meters will give a more accurate reading and you will probably see your water bills go up,'' she said. ''But these meters are just antiquated. I mean, you cannot expect a 1957 Chevy to run like a 2002 vehicle. Even if you put new parts around it, you still got that old engine that can only do but so much.''

Some of Denmark's 3,640 residents are bound to love the plan; others will hate it.

Resident Serena Kinard, who stepped into city hall Friday to pay her monthly water bill, said she probably wouldn't be able to afford a higher bill. Right now, she is taking care of her new baby while her husband works at Vorhees College and provides their only source of income.

''I'll probably have to get a job'' if the bill goes up, she said.

Denmark might roll back the water bills after a year of increased revenues, Mrs. Anduze said.

On the police level, statistics show Denmark is leading the county in all forms of crime. The proposed budget provides for an increase in police salaries aimed at retaining officers. Current salaries at $18,000 mean officers frequently complete training and then leave Denmark for higher-paying jobs. New salaries of $23,500 could persuade officers to stay longer and get to know the community.

''Every time one leaves, we are short an officer. And then we get a rookie in,'' Mrs. Anduze said. ''For the criminals, it's sort of like, 'Hey, you can sell drugs in Denmark. They don't have enough police to do anything.' We want to change that image.''

Fire protection will see an increase in staff from two full-time firefighters to three if the budget is approved. Overtime was outrageous for the two full-timers, and they were becoming burned out, city officials said.

The budget also will provide for a services contract with the volunteer firefighters with the city contributing $15,000 annually to their organization.

Trash collection will remain the same, but Mrs. Anduze has devised a plan to save the city $96,000 annually. Instead of contracting with another company, the city can purchase a new truck and hire two full-time employees and one part-time employee.

A large money-maker proposed for the city comes with the creation of a inspection and code enforcement division. The owners of single- and multi-family units will be assessed an annual inspection fee and will get a certificate once it passes.

''I know for a fact that we have substandard rentals here in our city. The code enforcement will be here to protect the safety of citizens who are in these rental properties,'' Mrs. Anduze said. ''If these places do not meet code, the owner will get summoned, and they will have (time) to repair this. If they don't, they will be fined or closed down.''

Reach Greg Rickabaugh at (803) 279-6895 or greg.rickabaugh@augustachronicle.com.