City officials expect Warrenton’s overall revenue for the upcoming fiscal year to be slightly down from last year but are optimistic that sales tax revenue will continue to grow.  City officials are projecting sales tax revenues to increase by 5 percent to $2,400,300 in the 2012-2013 fiscal year. Last year’s sales tax revenue was anticipated to be $2,278,800. Terri Thorn, the city’s director of operations/finance officer, said last year’s sales tax numbers were even greater, with a 10 percent increase seen. But officials decided to take a conservative approach entering the new fiscal year because of uncertain retail climate at the Warrenton Outlet Center. Thorn attributed the revenue bump to new businesses that opened in the past year which helped offset the losses from the stores that shuttered. “I was pleasantly surprised,” Thorn said about seeing the upward trend in sales tax numbers. “We knew were trending over budget. We’re more optimistic it will continue.” Warrenton aldermen unanimously approved the 2012-2013 budget at their June 19 meeting. The budget goes into effect July 1. The total projected revenue from all funds is $7,845,210, of which $2,674,055 is from the water and sewer fund and $2,400,300 is from sales tax. The city has increased water and sewer rates by 3 percent. Last year the city anticipated to receive $8,327,032 in revenue. Real estate and personal property tax revenues are projected to remain flat at $421,000. The tourism tax is expected to generate $115,000, down $5,000 from the past year’s budgeted amount. The total operating expenses, excluding capital expenditures and debt service, is projected to be $5,806,990. The city is projecting to spend $2,783,860 on capital projects, of which $909,760 had been allocated in the prior year’s budget but were not completed. City employees will receive a 3 percent increase in their wages, with 10 employees slated to receive merit raises, according to Thorn. She said the merit raises were all approved by aldermen and were related to education achievements or employees receiving certifications related to job duties. The city’s debt service is $855,713. That total includes $126,478 related to the city hall expansion and $537,424 attributable to previous water and sewer improvements. In the previous fiscal year, the city was able to reduce its annual debt service payments by $306,166, money that has been allocated for capital projects this year. The city also is expecting an 8.5 percent increase in health insurance premiums, a 5 percent bump in utility expenses and liability, and property and workers’ compensation insurance. Also included in the budget is contract renewals for local service agencies Agape ministry of Warren County ($14,000) and the Warren County Senior Center ($8,000). Overall, Thorn said she is pleased with how the budget came together. “As we’ve learned, it’s subject to change if something else comes up,” she said. “I think it’s a good plan for the upcoming year.”   Water, Sewer Rates Going Up For the second consecutive year, water and sewer customers will see an increase in their monthly bills. The 3-percent hike in water and sewer rates will be reflected on the August bill. Thorn said the average monthly water and sewer bill for residential customers in the city limits will increase $1.19. Commercial customers will see their payments go up $3.80. Residential and commercial customers outside the city limits will see their bills increase $2.38 and $12.95, respectively. Following the rate hike, the average monthly bills are as follow: $39.70 (city residential), $126.55 (city commercial), $79.49 (outside residential) and $431.68 (outside commercial). Thorn said the rate increase was needed to cover additional operating expenses related to the wastewater treatment plant and maintaining and improving the city’s infrastructure. “We don’t want to be in a situation where a big percentage increase is needed,” Thorn said. “The city has been taking the stance to do small increases annually rather than double-digit increases down the road.” Prior to last year’s 3 percent rate hike, the city raised rates by 5 percent during the 2010-2011 fiscal year.   Capital Projects As the city moves into the 2012-2013 fiscal year, a priority for officials remains planning for an expansion of the wastewater treatment plant. The city has allocated $400,000 as part of plans to have preliminary engineering performed to determine upgrades to the plant and to cover sewer infrastructure improvements. Thorn said engineers will determine what improvements are needed and an estimated cost to expand the plant’s capacity. She added the city intends to obtain a state revolving loan in the future to pay for the upgrades. The city plans to spend $532,000 on repairs and improvements to multiple wells and towers. Those projects had been put on hold in the past, but will now proceed since funds have been made available as the annual debt service in the water and sewer fund has been reduced by $306,166 in the past year. The city has budgeted $188,600 to complete the Highway 47 streetlight project, which will be going out for bid soon, and the tree maintenance and inventory project. Both of those projects will be partially paid for through grant funds. The approved budget includes $359,000 appropriated for repairs and upgrades to multiple streets and sidewalks and another $83,300 allocated for stormwater improvements, including the completion of a project in the downtown area. Also, $90,000 has been earmarked for improvements to the athletic complex, such as expanding electric and building a bathroom and pavilion on the east side, and $56,000 for pool improvements. City officials will also be looking at purchasing a building to house the grounds and maintenance department. Money that has been set aside for that possible purchase totals $250,000. The city will also purchase two new police cars and two service vehicles and dump truck for the water department totaling $232,000, along with equipment purchases for multiple departments.