The Mayor and Board of Commissioners for the Town of Blowing Rock met in special called session on Wednesday, May 12, 2004 at 2:00 p.m. Present were Mayor J. B. Lawrence, Commissioners Barbara Ball, Terry Lentz, Keith Tester, Rita Wiseman, and David Wray. Also present were Town Manager Scott Hildebran and Town Clerk Barbara Beach.

The purpose of the meeting was to hold a budget work session. Mayor Lawrence called the meeting to order. Mr. Hildebran reviewed sources of revenue for the General Fund and Water Fund. He also reviewed General Fund and Water Fund expenditures, highlighting major capital project requests for each department. He recommended a 3% cost of living increase for Town personnel, and reviewed personnel expenditure amounts for health insurance, which has increased 11.5% for the new fiscal year.

Council members discussed the proposed budget for each department for fiscal year 2004-2005, suggesting changes and/or reductions to certain line items. Council members requested an additional amount be budgeted for gasoline purchases in each applicable department. Council members also discussed the amounts budgeted for telephone in each department, suggesting methods to reduce this expenditure.

Members reviewed proposed expenditures to community organizations, and the amount to appropriate to Fund Balance. Council debated the necessity of an increase in the tax rate, with some members suggesting an increase of one to two cents so that an additional allocation can be made to build reserve funds to cover future emergency situations.

Mr. Hildebran will provide additional information on the impact this action would have on taxpayers, and report to Council at the next budget session scheduled for May 25.

At the conclusion of the session, Mayor Lawrence adjourned the meeting at 5:20 p.m.

________________________________

J. B. Lawrence, Mayor

___________________________________

Barbara G. Beach, Town Clerk