Princeton board debates, passes budget

The Princeton Town Board adopted the 2007-08 town budget Monday night, but not before many differing opinions were aired and compromises reached.
Town taxes will increase 1¢ in the new budget, to 55¢, water and sewer rates will drop 10%, and a proposed increase in the late payment fee, from $10 to $15, was dropped in the final budget.
There were two areas which remain uncomfortable for Police Commissioner Walter Martin, and at one point Police Chief Eddie Lewis said he expected two of his full-time officers would be quitting if something more wasn’t done to address police pay, but there seemed to be a spirit of compromise at the end of the budget process.
At the end of the last budget session, which was held after the regular monthly meeting earlier this month, the board asked Town Clerk Marla Ashworth to prepare budget spread sheets with tax rates of 55¢, 56¢, and 57¢. They also asked budgets to reflect increases in the town’s pay plan of 3.4%, 3.7%, and 4%. To balance the different proposals, Mrs. Ashworth proposed using the town’s fund balance, increasing from a minimum of $20,022, to a maximum of $31,177.
Mr. Martin asked the board to reconsider adding merit pay increases to the budget. He argued that while there may be some merit to the arguments that there needed to be changes made to the town’s current merit pay system, town employees shouldn’t be penalized because the town’s system was flawed. “If I mess up when I cook the family steaks on the grill, I eat the steak I mess up instead of the family,” Mr. Martin said.
His motion to reinstate merit pay increases did not get a second from the other board members.
Mayor Don Rains did respond by asking Commissioner David Starling, who works with state government in their benefits department, to review and bring back proposed changes to the merit pay system by the September board meeting.
Mr. Martin then pushed for a 4% pay rate adjustment in the budget. Mayor Rains countered that many other neighboring boards were using 2-2.5% cost-of-living adjustments to their pay systems.
Previously Mr. Martin had compared Princeton’s police pay with other area departments to make the case that the town could not retain officers at current pay levels.
Mr. Martin’s motion in favor of adopting the 4% pay plan increase failed to gain a second.
Chief Lewis then interjected if the town was not going to give merit increases or a cost-of-living increase, he would need to re-budget for overtime pay for his department as he would be accepting the resignation of two of his full-time officers.
Mayor Rains responded that he believed the board would be increasing pay, but it was just a matter of determining how much.
The only town resident attending the meeting, Greg Collins, spoke up for increasing pay. As a police officer with the Town of Selma, he said how vitally important merit pay was to him, and encouraged the town board to reconsider the issue.
Meanwhile, Commissioner Eddie Haddock was questioning Mrs. Ashworth about the impact of the pay increases.
Mr. Starling asked the board to compromise between the 3.4% originally proposed, which is the federal government’s official Consumer Price Index increase for this region, and Mr. Martin’s 4%, with a 3.7% increase.
Mr. Haddock then said he had done the math and in trying to digest the different numbers, realized that the 4% adjustment represented just $1,251 over the 3.4%, less than half a cent on the tax rate. He asked the board to reconsider the 4% increase.
He and Mr. Martin voted in favor of increasing the pay plan by 4%, and Mr. Starling and Commissioner Billy Sutton voted against. Mayor Rains cast the deciding vote in favor of the 4% increase.
Earlier the mayor had requested the board approve the water and sewer budget.
Mr. Martin argued as he had in earlier meetings against cuts in water and sewer rates, saying the board ought to keep rates as they are and continue to make improvements with the extra revenue.
Mayor Rains countered that the board was continuing in this budget to make improvements in the utility systems, and with annexation and continued efficiencies, the board could afford to provide relief to utility users. He also countered that the board had accumulated a 26% fund balance with the current rates in recent years. They are still able to transfer some money, in the form of late payment fees, to offset some general fund expenses and keep the tax rate lower.
With Mr. Martin dissenting, the board agreed to the 10% cut in the water and sewer rates.
In a final budget approval, Mr. Haddock, Mr. Starling and Mr. Sutton all voted in favor of the final compromise budget, but Mr. Martin voted in opposition.