With reserves of about $9 million, Hiram will again levy no property tax in FY2010, as the city has been able to do for more than three decades.

The balanced 2009-2010 budget projects $2,468,305 in general fund revenues and expenses.

The city finished the 2009 budget year June 30 with $453,104 in excess revenues over expenses, “the biggest [surplus] yet,” said Mayor Carmen Rollins Sept. 1. Hiram also has $8,558,000 in interest-bearing certificates of deposit from prior surpluses.

One “unique feature,” said the mayor, is that the new budget includes a 2 percent pay increases for employees. And “I added an additional 1 percent for the three department heads” who have remained under their budgets the past three years, Rollins said. “I have three very good department heads in the boat with me, trying to live within our means. I’m pleased with the outcome of the past year’s budget; we worked hard to stay within limits.”

Rollins said the new budget estimates revenues at 98 percent of what the city collected last year. Sales tax revenues are budgeted 10 percent lower than 2009 “because it’s unknown” what will be collected as stores both open and close in Paulding’s hottest commercial area.

“I always budget revenues conservatively and expenses liberally,” she said. Expenses are budgeted 20 percent higher, in part because of five new employees: four who will be responsible for law enforcement duties that have been performed by the financially constrained county Sheriff’s Office, and a code enforcement officer.

A $37,000 capital outlay will drain, clean, resurface the inside and paint the outside of the city’s rusting water tower.

“We’re expecting more revenue from the hotel/motel tax” that began during the past fiscal year, Rollins said. The 2010 budget predicts $100,000 in hotel/motel tax “that will help the chamber promote tourism.”

The city collected $570,964 in fines in 2008-2009, comprising the lion’s share of the city’s income, and projects revenues of $639,755 in FY2010. Other major revenue line items projected for the new fiscal year include sales tax, $425,000, down from the $470,600 actually collected the past year; $275,000 in franchise fees; $275,000 from beer tax; $110,000 from liquor tax; $160,000 in alcoholic beverage licenses; and $140,000 from occupational tax licenses.

The mayor said interest on the city’s CDs “has been very good the last three years” at 4-6 percent, but “probably 2 percent would be good now.” Interest income totaled $380,903 in the past fiscal year and is budgeted at $200,000 for FY2010.

Expenses are budgeted at $375,400 for Public Works, including $302,400 for streets, $23,000 for the Community Center (if the building retains current use) and $50,000 for Parks & Recreation: $20,000 for park operation and $25,000 for event services. Municipal Court costs are projected to be $370,505, up from $291,528 a year earlier, and administration costs are estimated at $463,900, rising from $385,277 in FY09.

The Police Department consumes most of the budget with $1,258,500 designated for the new fiscal year. The department needed $1,031,446 in the past fiscal year but is adding four new employees. Police salaries total $813,000.

Rollins said the only part of the budget that “I’m not as happy as in the past about” is limiting contributions to community service agencies to a total of $19,000, including $10,000 for the Boys & Girls Club summer program, “our Hiram organization.”

City contributions to charitable groups providing services for Hiram residents have “been more in past years,” said Rollins. “All the county non-profits are struggling. This is probably the only number in the budget I’m not happy with.” The council budgeted $43,000 for contributions in 2009-2009 but donated $35,140.

“Because of the economic situation,” said the mayor, the $453,104 fund balance from the recent fiscal year will be kept in a contingency fund “in case something happens.”

There was no comment during the public hearing preceding the City Council’s 4-0-1 vote to adopt the budget. Councilman Vince Smith abstained, saying he had not had sufficient time to review it. The council vote to roll the tax millage rate back to zero was unanimous.