Warsaw approves $4.1M budget amid public pushback on rate hikes

WARSAW — The town of Warsaw held a contentious two-hour long meeting on Monday to approve its $4.1 million FY 2025–26 budget, drawing sharp criticism from residents over fiscal priorities.

While the budget includes funding for police and administrative services topping the town’s expenditures, only $2,500 is designated for the library, prompting outrage after $258,250 was earmarked for DreamWorks, a recreation facility.

Water and sewer rate hikes, cost-of-living raises for town staff, and a stipend increase for town leaders have further fueled debate. Although the property tax rate has decreased from 57 to 50 cents per $100 valuation, many believe the budget overlooks essential infrastructure and community needs.

The budget outlines a total General Fund appropriation of $4,127,500, which includes $1.6 million for the Police Department, $600,575 for administration, $557,100 for streets, $323,700 for sanitation, $317,550 for recreation, $168,456 for the Fire Department, $268,394 for special appropriations, $25,000 for police separation allowance and $257,750 for both the library and DreamWorks combined.

Estimated revenues are expected to balance this amount largely from property and sales taxes. The new tax rate is based on an estimated taxable property valuation of $306,361,034 and a collection rate of 97%. Also a 5% fee increase is applied to water services.

Angela B. Mainor questioned the annual water rate increases. Town Manager Lea Turner explained that rising operational demands and aging infrastructure necessitated the 5% increase this year to prevent steeper hikes in the future. She also highlighted the link between rates and eligibility for grants.

The Powell Bill Fund outlines $112,700 in expenditures with an equal amount in anticipated revenue to support it. The Utility Fund expects total expenditures of $2.77 million, covering water and sewer operations at $2.49 million and debt service obligations of $276,075. Funding will come from water and sewer sales, penalties, interest income, surcharge fees, and reserves.

Marzella Morrisey, raised deeper concerns about water and sewer rates, pointing out that despite a 10% increase last year the town is still dealing with infrastructure failures, particularly the stormwater system.

She challenged the effectiveness of the stormwater fees alleging that no visible improvements exist as street flooding remains a chronic issue during heavy rains.

“The stormwater fund expenditures. It’s the same as it was in the last three years — $63,000,” said Morrisey, adding that there is frequent flooding during heavy rains and a lack of visible maintenance in their areas.

Residents expressed frustration over the budget process, many voicing the budget failed to address real public needs. Although some officials responded by acknowledging these concerns and indicating that the budget could be revisited in a special meeting, the overall feedback from residents was one of frustration — particularly over the need for more transparency, and a failure to adequately involve the public in decisions that directly impact their lives.

Commissioner Jack Hawes aimed to clarify misconceptions regarding industrial users and infrastructure responsibilities, explaining that many agreements were made before the current board’s tenure. He pushed back against a citizen’s claim that the town is shouldering all fines related to wastewater violations. He explained that not all penalties fall on the town itself, and that industrial surcharges — paid by companies using the system — help cover the cost of violations.

Calls were made for modernized software that could provide itemized financial data, similar to systems used by neighboring towns such as Wallace.

Commissioner Ebony Wills-Wells addressed the need for transparency, noting that the lack of detailed itemization in the budget documentation likely contributed to public confusion. She recommended breaking down expenses and revenues so that citizens can easily track where funds are allocated—especially regarding special appropriations, fines and infrastructure costs.

She echoed the sentiment that while surcharges and industrial fines exist, it’s unclear if or how consistently they are being enforced.

A discussion around stipend increases for elected officials and 5% cost-of-living adjustment employee raises was another contentious aspect of the public hearing. Public feedback at its core, it reflected deeper concerns about fairness, and whether the town’s leadership is prioritizing its resources appropriately during a period of financial and infrastructure strain.

Mayor A.J. Connors defended the stipend increase for elected officials — from $300 per month to $500 for board members, to $600 for the mayor. He noted that the increase aligns with the workload and responsibilities associated with holding office in a small but growing town.

However, critics in the audience questioned the timing and optics of such an increase, given ongoing issues with DEQ fines, and rising utility rates.

The meeting also highlighted the growing gap between the town’s infrastructure needs and available funding.

Public Works Director Craig Armstrong told the board that current funding is insufficient to maintain Warsaw’s roads. Armstrong emphasized that long-term financial constraints necessitate early interventions on roads before they deteriorate further. He illustrated this point with a recent paving invoice totaling nearly $50,000 for less than 3,000 square yards of asphalt. He highlighted that the town’s current funding, particularly from Powell Bill allocations, is far from sufficient to maintain Warsaw’s 20 miles of roads.

“Y’all got a job to do that I wouldn’t dare try to tackle. But when we’re budgeting $100,000 with asphalt prices the way they are, that’s just a two-inch overlay. That’s not any prep work or having to mill that road to get it back down to a suitable surface to lay asphalt on,” said Armstrong.

He noted that although it may seem logical to focus on the worst roads first, the long-term costs are often better managed by addressing roads that are beginning to show signs of deterioration.

Armstrong explained that Warsaw receives about $112,000 annually from the Powell Bill, along with an additional $50,000 to $60,000 from other street maintenance budget sources. In contrast, paving a standard-width mile of road costs approximately $150,000. This means that a realistic plan to repave the town’s 20 miles of roads over the next 10 years would require an investment of roughly $300,000 per year. Complicating the situation further, emergency repairs, issues with the water and sewer systems, and patchwork maintenance already strain these limited resources.

Small, isolated patch jobs—often requested by residents—tend to be particularly costly on a per-unit basis due to the mobilization and setup requirements, making them the least efficient use of funds. While Armstrong did not ask for additional funding, he strongly urged the board to consider the long-term implications of underinvestment. He emphasized the need for long-range planning and prioritization of projects, warning that deferred maintenance would only lead to increased costs and deteriorating road conditions for residents.