Millage stands pat for '09-10 budget

AIKEN --- Despite a projected downturn in revenue, the Aiken City Council gave initial approval Monday night to a budget that calls for no millage increase in the next fiscal year.

The 2009-10 fiscal year budget, which must now go back before the council for a second and final reading June 8, will keep the city's millage of 66 unchanged. City officials said that would mark the 21st consecutive time without an increase. Last year, the rate was reduced from 71 to 66, with each mill generating about $132,803 a year.

The proposed budget, which would take effect July 1, anticipates about $1.8 million less in revenue compared with this fiscal year. The budget lists general fund expenditures at $26,527,847, matching the anticipated revenues.

According to a city memorandum, the dip in revenue would come as a result of a 55 percent decrease in building permits, an expected 27 percent cut in state revenue, an 8 percent decrease in fines and forfeitures, an 11 percent drop in vehicle taxes and a 73 percent decrease in interest earned on investments.

As a result, the memorandum states, the city is delaying $800,000 in capital purchases, freezing 10 positions and cutting travel in half. The budget also was balanced by taking $640,000 from the city's reserves.

Referring to next year as "one of the more difficult years," City Manager Roger LeDuc commended individual departments for working hard to reduce their projected costs.

In other action, the council gave final approval to University Hospital's plan to open a 17,000-square-foot office complex off Silver Bluff Road.