Aug. 27--ATHENS -- Water/Wastewater Manager John Stockton had one word for his proposed budget, and that word was "ugly."

Stockton was among those who made their fiscal 2010 budget proposals to the Athens City Council on Wednesday. His combined budget will take an estimated $1.6 million hit from the closure of Pilgrim's Pride, a chicken processing plant that will close in September or October.

Stockton said it will be impossible to make up that loss with budget cuts. Council President Ronnie Marks asked him if he could make it through half the fiscal year without a rate increase and then review his financial status.

Stockton said he could use $550,000 in reserves to pay for operating expenses at this time. He can also tap an estimated $914,000 in fees that go into capital infrastructure, but that limits expanding or improving sewer lines.

"With the rate increase we just had and the slump in the economy, we don't want to (increase rates) again," said Athens Utilities Manager Gary Sroggins.

"But we can't keep maintaining the budget with the loss of Pilgrim's Pride with reserves and cuts. Unless a new industry comes in, we'll have to eventually look at a rate increase."

The Wastewater budget will have a $1.3 million deficit without using reserves and capital infrastructure. The Water budget will have a $129,132 deficit.

The council will consider a fee increase in one area, which is raising fire hydrant maintenance fees for homeowners to $12 a year. Homeowners currently pay 50 cents a month. That will include homeowners in the city and those in the county serviced by a city line.

The proposed fee increase for commercial will go up depending on the size line. For example, those on a 12-inch line pay $24 a year now, and that would go up to $72 a year, if approved.

York Lane resident Terry Scruggs, who lives in the county but has city water, was not at the meeting but read about the proposed increases in the newspaper.

He questioned the need for the increase and said the city should look at cuts first.

Councilman Harold Wales also questioned the need. Stockton said the department must maintain the lines and maintain and replace hydrants when needed. The increase would generate about $9,500.

Proposed budgets

ATHENS -- Those who presented fiscal 2010 budget proposals on Wednesday:

Water/Wastewater, which shows a total deficit of $1.4 million, which could be handled with reserves and capital infrastructure for now.

Gas Department, $480,183, which includes keeping its appropriation to the general fund at 8 percent, which is $925,000. The percentage is based on sales, which are down, which would have meant a $78,000 cut in its appropriation to the general fund. The total does not include buying 20 acres at Leak City to expand the training facility for the department and add a multi-use training area for Fire and Police departments. Council members asked Manager Steve Carter to bring them a separate proposal and to remove the $350,000 loan from the Electric Department from the budget.

General Administrative, $1.04 million.

Municipal Court, $251,484.

Human Resources, $261,624, which is less than the previous year because the council has not replaced two assistants.

Budget hearings are to begin at about 9 a.m. Thursday at City Hall with police, fire and Public Works making requests.

HOLLY HOLLMAN

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