High Country Times

Boone township officials may have to dip into the town's saving to support operations in the FY 2020-2021 budget because of COVID-19 and its financial impact on local revenues. 

The town's proposed budget comes in at $27.1 million, which is approximately $1.57 million less than the current spending plan, the Watauga Democrat reported in early June. The operating budget also includes funding for the water and sewer department. 

If officials' projections remain true, Town Manager John Ward has previously said Boone would need to use approximately $1.2 million from available savings accounts to cover operating costs in the FY 2020-2021 budget, which starts on July 1, the Watauga Democrat reported.  

If officials decide to use the $1.2 million, it will avoid raising taxes for supporting government operations and services, the Watauga Democrat reported. 

“While the most recent water and sewer rate study called for increases in water and sewer rates both last year and this year in order to provide funding for capital improvements in our aging system, there are no proposed increases at this time,” the budget details stated, the Watauga Democrat reported. “Staff were successful in working with the High Country Council of Governments in securing a $2 million grant for the Deck Hill water tank. This grant allows water and sewer rate increases to be delayed.”