Smithfield aims for level real estate tax rates in FY 2018

April 15—Smithfield Mayor Carter Williams anticipates no real estate tax rate increases during fiscal year 2018.

Williams said one big challenge facing the town council this budget season is a rise in employee health insurance costs, estimated at $100,000. The council will try to trim where possible to offset this increase, he said Friday. He said he wasn't sure if the increase would lead to higher costs for town employees.

“We don't know yet,” Williams said. “We're going to have to try and offset that. Last year, we trimmed different areas.”

Some of these cuts included donations to local organizations for operational costs. One of the costliest services to the town is its waste and recycling pick up. The town contracts with Bay Disposal. This year, council will consider picking up recycling every other week instead of every week, which would equate to roughly $100,000 a year in savings, Williams said.

The largest expenses for the current fiscal year include capital expenses, budgeted for $6.4 million, Public Safety, budgeted for $2.5 million, and Community Development, budgeted for $2 million.

These expenses include $3.6 million for the new Joseph Luter Jr. Sports Complex; $2 million for renovations at Windsor Castle; and $254,000 for a public boat ramp, a project that likely will be held for fiscal year 2019, according to Town Treasurer Ellen Minga. $10,000 was budgeted for a fishing pier replacement at Clontz Park.

Smithfield Foods donated $1 million for the sports complex, and Joseph Luter III donated an additional $2 million.

The town projected $1.7 million in revenue from real estate taxes for the current fiscal year, no increase from fiscal year 2016. The county's second-largest revenue source, meal taxes, was projected at $1.1 million for the current fiscal year, a roughly $60,000 increase from fiscal year 2016.

Williams said the big ticket items, like Public Safety and Community Development, would likely stay around the same amounts. However, the council will discuss what to cut in order to prevent tax rate increases, he said.

“Things have gone up, like insurance,” Williams said. “So we have to converse for that — What do we do? How do we handle it? Adjust here and there, that's what we're going to be doing (at the budget session). We're going to take a look at everything.”

Smithfield's first budget work session will be Tuesday, April 18, at 4 p.m. at the Smithfield Center.

Smith can be reached by phone at 757-510-1663.

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