During a recent government meeting, officials discussed the implications of a proposed budget that included a rate increase, which was ultimately rejected by a council vote. The finance department presented a budget that allocated funds for various projects, including $25 million for certificates of obligations, 1.3% for a second pipe bursting crew, and 7.5% for employee raises and inflation adjustments. However, with the decision to implement a no rate increase, the budget will require significant revisions.

Council members expressed concern over the anticipated budget deficit, which is expected to arise from increased expenditures exceeding revenues. Councilman Lewis confirmed that without the rate increase, the budget would indeed reflect a deficit, complicating efforts to maintain a balanced budget and fund necessary infrastructure projects.

The discussion highlighted the urgency of addressing water and sewer infrastructure needs, with an estimated $5 million in capital work planned for the year. However, without the rate increase, these projects may be jeopardized. Councilman Dusett emphasized the need for clarity on the costs associated with the proposed pipe bursting crew and senior citizen discounts, which were estimated to be under $50,000.

The finance department indicated that the new pipe bursting crew would require approximately $570,000 for equipment, including trucks and trailers, as they would share existing resources with the current crew. The council is now tasked with revising the budget to reflect these changes and address the looming deficit while prioritizing essential projects.