HOPE – When compared with this year, the Hope Town Council has approved a 40% increase in next year’s budget.
The 2023 spending plan provides $2.12 million for the town of 2,100 residents to operate local government, compared to $1.5 million approved for this year. The figures, presented by Clerk-Treasurer Diane Burton, were unanimously approved Tuesday with little discussion from town board members.
Like many local communities, Hope is receiving a substantial funding boost from federal COVID-19 relief funds. The northeast Bartholomew County community will receive $460,000 next year through the federal American Relief Plan grant fund.
The local tax rate of 5.01% for the town’s general fund will raise $712,617 — a 4.3% increase from the $683,463 in this year’s spending plan.
In addition, reserve funds earmarked for possible spending this year that were not touched will be moved into next year’s budget, Burton said. That includes $160,000 in Rainy Day projects, $19,550 for a police vehicle, and $7,889 for a payment toward the eventual development of a new town hall, the clerk-treasurer said. These money shifts were required by the Indiana Department of Local Governmental Financing in order to approve next year’s budget. Burton said.
The northeast Bartholomew County community of 2,200 residents will also receive:
- $103,433 from its motor vehicle highway fund (up 29% from this year)
- $140,000 from the cumulative capital development fund (up 30% from this year)
- $351,054from the economic development income tax (up 8% from this year)
Other sources of income will remain at the same level, while the $40,000 set aside for road and street paving projects is identical to the amount approved last fall.
While the council had no questions regarding the 2023 budget, members seem uncertain regarding how much of a raise town employees should receive next year. Burton gave council members examples of what impact different levels of raises might have on the town’s budget. The council also has the option of providing a gratitude bonus to municipal employees in December as they have approved for the past two years.
Council member Clyde Compton said that while the town must remain competitive to keep quality employees, the council needs to be prepared if high inflation forces interest rates to rise further, which could cause a recession.
While Compton suggested a one-year freeze on the minimum salary level, he also asked the council to consider providing other town workers a 4% raise, as well as a gratitude bonus.
But the council decided not to consider Compton’s suggestion, nor other proposals for next year’s salary ordinance, until next month.
To date, the only approved change in the 2023 salary ordinance allows deposits into health savings accounts to go up from $1,425 to $1,925. That increase was approved by the council in September.
