To the Honorable Mayor and Town Council of the Town of Blowing Rock:

I am pleased to provide you a copy of the FY 2004-2005 Annual Budget and Budget Ordinance (#2004-09) for your review and consideration. This document was prepared by Town Staff and represents a comprehensive publication of the Town’s plans and policies for the upcoming fiscal year.

The Recommended 2004-2005 Budget was presented to Town Council on May 11, 2004 and copies were made available to the Town Clerk and the public. The Town Council held Budget Worksessions on the budget on May 12 and May 25, 2004. Pursuant to N.C.G.S. 159-12 (b), the Council will hold a public hearing on the proposed budget this evening (June 8, 2004).

The 2004-2005 Proposed Budget Document reflects the budget as amended during Council deliberations. An updated Budget Message Summary is attached to this correspondence.

COUNCIL ADJUSTMENTS

Based on Town Council direction, the Proposed FY 2004-2005 Budget maintains the ad valorem property tax at .0295 per $100 valuation. In addition, the FY 2004-2005 Budget reserves $65,000 to strengthen our General Fund Balance and includes additional monies for escalating gasoline costs. To cover a Watauga County landfill tipping fee increase from $40/ton to $42/ton, the FY 2004-05 budget will increase commercial solid waste charges to cover those additional costs. Also, the Town budget will include a water/sewer rate adjustment of approximately 9% to offset rising operating and capital costs. This rate adjustment is only the second adjustment in 10 years, or since FY 1994-1995.

All other Town fees and charges will remain the same in FY 2004-2005.

The FY 2004-2005 Proposed Budget totals $5,016,795 for all Town operations, capital improvements, and debt service requirements. This is an increase of less than 1% (.299%) over last year’s adopted budget of $5,001,795.

On behalf of all Town coworkers, I thank you for your continued guidance and support of our efforts to meet your priorities in the delivery of quality and efficient services to the citizens of Blowing Rock.

Respectfully Submitted,

Scott E. Hildebran

Town Manager