MAXTON — The property tax rate and fees stay the same, and town employees get a pay raise in the $3 million fiscal year 2020-21 budget approved Thursday by the Maxton Board of Commissioners.

The vote to approve the spending plan that contains a 2% cost-of-living-adjustment increase was unanimous. The vote was made without discussion by the commissioners or comments from the public during a special called meeting at Town Hall. Commissioner Paul McDowell was not present and Mayor Pro Tem Virgil Hutchinson voted via telephone.

The budget, which goes into effect Wednesday, keeps the property tax rate at the current level of 80 cents per $100 of property value. That means the owner of the $100,000 home would pay $800 a year in property taxes. Water, sewer and sanitation fees also will remain the same.

The combined water and sewer budgets total $770,300, and Powell Bill appropriations total $99,100.

“Powell Bill funds are to be used primarily for the resurfacing of streets within the corporate limits of the municipality but can also help pay for construction, improvements, repairs and maintenance of any street or public thoroughfare, including bridges, drainage systems, and curb and gutter, as well as the planning, construction and maintenance of bikeways, greenways or sidewalks,” according to the N.C. Department of Transportation.

The budget includes a General Fund Balance of $2,169,985. That number is based on estimated available revenues. Of the General Fund Balance, $663,520 will be set aside for administrative costs, $18,000 for the Recreation Department, $1,035,930 for public safety, $385,805 for the Public Works Department and $66,730 for long-term debt.

Finance Officer Myra Tyndall said she estimated a 20% drop in revenues while crafting the budget. Whether or not that estimate is large enough is hard to tell, she said.

“I’m hoping that it’s enough,” Tyndall said. “We’ll look at the budget again in January and see if we’re over or under and if we have to make adjustments.”

Tyndall is predicting a “big decrease” in sales tax and property tax revenues further into the year because of a possible drop in tax collections from businesses and residents suffering the financial effects of COVID-19.

“It hasn’t hit us too hard so far,” Tyndall said.

Water and sewer revenues should remain steady, she said.

For now, Tyndall said money in the fund balance should keep the town afloat for the upcoming budget year but not the following fiscal year.

Mayor Paul Davis thanked Tyndall for all of the work she put into constructing the budget.

Tomeka Sinclair can be reached at [email protected] or 910-416-5865.