Olanta council OKs first reading of budget, water rates

OLANTA — Olanta Town Council has given its initial approval to the town’s proposed fiscal year 2009-10 budget as well as increased water rates.

The town’s general fund revenues are projected to reach $544,644, which would outpace expenses at $543,069, Mayor Betty Sims said Monday.

The remainder of the budget is structured as follows:

• Administrative expenses: $133,638
• Police department: $183,231
• Streets department: $225,200
• Utility fund revenues: $788,870
• Utility fund expenses: $781,584
• Salaries (all departments): $141,849

Council said at the meeting that it was giving first reading to the ordinances, which also must pass a second reading before going into effect, but didn’t take an actual vote on the measures.

The town is considering an ordinance to raise its base water rates by $4 because it has to eventually reach the state average of $30 in its water rates, Sims said in March. Then it can qualify for U.S. Department of Agriculture Rural Development loans.

The town’s residential base water rate, for the first 1,500 gallons, is $9.25 for in-city residents.

Of the proposed $4 increase to base water rates, $2 would reduce debt after $21,000 to $24,000 in repairs to a main water tank, according to a proposed ordinance.

Those dollars also would go toward loan payments and help the town raise matching funds for active grants — $40,000 for a Main Street sidewalk project and $36,000 toward a water and sewer upgrade.

The remaining $2 of the proposed increase would go to establish a limited-use reserve fund limited to infrastructure projects and emergency repairs not budgeted.

The money cannot be used for salaries, bonuses or any item already budgeted, according to the proposed ordinance.

Once a loan is satisfied, the town would add the dollars to the reserve fund for one year. On the anniversary of the final loan payment, the dollars would begin entering the town’s General Use Fund.

Councilman Robert Thompson said in March that he expects the reserve fund to accrue $8,500 a year initially and increase to $16,000 a year.

Council on Monday also gave initial approval to the purchase of nearly one-fifth of an acre on which it will install a sewer lift station. The land, near the intersection of S.C. 341 and South Powell Street, is owned by Mack Arthur and Andrew Beard and will cost $2,200.

Council members also said they are working on a request from Jimmy McCutcheon to annex his property into Olanta and considering the possibility of annexing other land that adjoins the town.

The town will meet with Florence County Planning and Zoning officials, who will help the town follow procedures and develop ordinances, Sims said.

The police and water departments would like to annex certain areas, so town leaders plan to ask around and see who on the outskirts would like to bring their property into the town, Sims said.

McCutcheon also said being part of the town could have an effect on fire insurance rates.

“I don’t see any negatives,” he told council. “I only see positives, to be honest with you.”

Police Chief Mark Strickland said new police officer Brian Faircloth will be heading to the South Carolina Criminal Justice Academy this summer.

Sims also said the town hopes to speak with its attorney about developing contracts for officers to work at least two years so that they don’t leave for another department as soon as the town pays for their training.

PROPOSED OLANTA WATER RATES

A preliminary proposed ordinance suggests a $4 increase to Olanta’s base water rates, for the first 1,500 gallons used. The ordinance has not yet been given a first reading. The proposed rates are:

Residential, in town

• $13.25 for first 1,500 gallons
• $1.90 charge for 1,501 to 13,500 gallons*
• $1.10 charge for 13,501 gallons or more*

Residential, out of town

• $17.50 for first 1,500 gallons
• $1.95 charge for 1,501 to 13,500 gallons*
• $1.15 charge for 13,501 gallons or more*

Commercial, in town

• $13.75 for first 1,500 gallons
• $1.90 charge for 1,501 to 13,500 gallons*
• $1.10 charge for 13,501 gallons or more*

Commercial, out of town

• $18 for first 1,500 gallons
• $2 charge for 1,501 to 13,500 gallons*
• $1.20 charge for 13,501 gallons or more*

Agricultural

• $17.50 for first 1,500 gallons
• $1.20 charge for 1,501 to 13,500 gallons*
• 40-cent charge for every thousand gallons thereafter

*Charge applies to each additional 1,000 gallons; these rates would remain unchanged.

— SOURCE: Town of Olanta