DOBSON — There are no proposed hikes for taxes or the water and sewer rates in Dobson in the proposed budget for the 2009-2010 fiscal year, but that could change as the Dobson Board of Commissioners discussed last night at its budget session.

Commissioner Wayne Atkins presented the budget in place of Town Manager Lynn Burcham, who is on non-disciplinary suspension. Before retiring, Atkins was the town manager prior to Burcham’s appointment two years ago.

Atkins told the board that in the proposed budget, which is $4,046,552, Burcham had suggested transferring $65,000 from the general fund to the water-sewer budget of $135,948 to balance it.

Mayor Ricky Draughn suggested the board review whether or not it should increase the water rate to supplement the water bill.

“I don’t have a problem subsidizing the water bill from the general fund, but I’d rather have a higher water rate knowing everybody is paying for their water,” he said.

Hugh Campbell, the attorney for Dobson, told the board it should discuss the water rates because of bonds the town approved that require by law that the rates be a certain amount to cover the expense of debt.

The rates increased from $1.90 per 1,000 gallons of water to $2.50 per 1,000 gallons in February 2008.

The proposed budget stated that revenues in the amount of $1,160,700 are required to finance the proposed expenditures of several departments within the general fund budget of $4,046,552. Estimated property taxes are projected to provide about 41 percent of the revenue based on an estimated assessed valuation of $127,600,800 at .38 per $100 with a 98-percent collection rate and a levy of $476,000. A portion of revenue from taxes collected by the state are refunded to the town, which includes about $493,000 or 42.4 percent from the ABC Store, interest on investments, occupancy taxes and other miscellaneous income totaling $162,1000 or 13.96 percent. The remainder of the revenues required, $29,600 or 2.55 percent, is provided from an estimated fund balance as of June 30.

The proposed budget also stated that the budget is 5.6 percent higher from the 2008-2009 budget because of payments on the library building and salary adjustments. There is no recommendation of cost-of-living adjustment in the 2009-2010 fiscal year.

“There are no large ticket items on this year’s budget,” Atkins said.

“The budget is pretty reasonable and sensible,” Draughn chimed in.

Other comments about the budget included that of Commissioner Gerri Martín, who stated that she was concerned about the budget, which estimates a more than 5 percent increase in sales tax.

“I think it may be too optimistic about the sales tax coming in,” she said. “I don’t think it’s a good idea to work under that perimeter. I don’t feel that (the economy) is going to turn around just yet.”

The mayor agreed.

“I agree with you about the way business is,” Draughn said. “That stuck out in my mind, too.”

The board is holding a public hearing on the proposed budget and a rezoning request from the county on June 25 at 6 p.m. in the town hall meeting room.

The budget must be approved by the end of the day on June 30.

Contact Erin C. Perkins at eperkins@mtairynews.com or 719-1952.