Winston-Salem City Manager Lee Garrity is proposing a tax rate hike of three-quarters of a penny per $100 of valuation, and a series of deep cuts in city programs that will slash the city’s overall budget by $10.4 million. In a presentation to Winston-Salem City Council, Garrity outlined the proposed budget, which raises the property tax rate from 46.75 cents per $100 valuation to 47.75 cents per $100 valuation — a measure that is projected to raise $1.6 million in additional revenue.
Garrity cited a number of economic factors related to the current recession as the reason for the tax hike and budget cuts. Sales tax is expected to decrease by 1 percent this year, and the city’s property tax base is expected to decrease by 1 percent as well. Also, the city must increase its contributions to state and local employee plans. All these budget factors add up to an $8.5 million between revenue and expenses in the $362.4 million budget, Garrity said.
To close the gap, Garrity is proposing the modest tax increase, the elimination of 37 city jobs, a freeze on pay increase for city employees, a deferment of city equipment purchases and an increase in fees on waste collection, parking and recreation activities. Under the proposal, the city will also reduce its contributions to nonprofit community agencies.
“My proposal attempts to minimize the pain of budget adjustments by spreading the impact,” Garrity said in a formal statement.
The city’s finance committee will hold a budget workshop on Thursday at 4 p.m. at City Hall in Room 230. Budget meetings will also be held at City Hall on June 14 beginning at 5 p.m. The Winston-Salem City Council will hold a public hearing on the budget on June 21 at 7 p.m. in council chambers. The city council is expected to adopt a budget after the hearing.
— Keith T. Barber
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