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The Winchester City Council has approved the second and final reading of the 2023-24 budget ordinance, and residents won’t be facing a property tax increase.

The council approved the $13.2 million budget at its June 13 meeting.

Finance Director Vanessa Fults said recently that the city’s fund balance — money left over from the previous budget cycle to be used as reserve money — will remain at $7.85 million after $2 million is taken out and budgeted for much-needed paving work.

The exact paving projects haven’t been determined, but Fults highlighted that the objective is “to take us as far as the $2 million will take us.”

Another budget highlight is that Winchester is funding $2.4 million of its share in a major sewer project geared to promote industrial development and accommodate residential expansion.

The city’s move, which began with a verbal commitment last year, goes hand-in-hand with the Franklin County Commission unanimously approving to fund $4.315 million for sewer service to the east Moon property, near Baxter Lane and Modena Road on the east side of Highway 64, to improve recruitment opportunities.

The Franklin County Finance Committee forwarded a proposal to the commission after hearing detailed information about how Franklin County has lost prospective industries and businesses because the property did not have sewer service.

The overall upgrades to serve the property will cost $10.675 million with Winchester also providing $6.36 million in city sewer improvements to accommodate the additional volume from the industrial property once it is developed.

The county’s share is coming from the $8.2 million it has received in American Rescue Plan funds. Winchester also received $2.407 million which Mayor Terry Harrell had said would be used to fund the city’s part of the sewer expansion.

The American Rescue Plan Act of 2021, also called the COVID-19 Stimulus Package, was a $1.9 trillion economic-stimulus bill passed by Congress to speed up the United States’ recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession.

Winchester Utilities General Manager George Powell had said that Winchester officials had given a verbal commitment to the city funding the project, and the City Council’s approval set its intent in stone.

Harrell explained the project’s significance.

“It’s a very important project, not only for the city. The county has an asset with the Moon property and needs the sewer project,” he said. “The city of Winchester needs this for future development inside the city limits. To have growth, our sewer system needs to be expanded.”

He said Winchester, Winchester Utilities and Franklin County are partnering together to make the much-needed sewer project happen.

“It’s not a cheap project,” Harrell said. “It’s a lot of money for all three of us.”

In addition to the county’s $4.315 million and the city’s $2.4 million, Harrell had said Winchester Utilities is contributing through in-kind services to install the sewer line.

Although residents are not facing a property tax increase this year, the City Council approved a 25 percent property tax increase last year, citing increased operational expenses and a need to improve a pay scale that led to an employee shortage.

With the council settling on a 25 percent property tax increase at 85 cents per $100 in property valuation, the taxes on a $100,000 home last year went from $170 annually to $212.50 — a $42.50 increase or $3.54 per month.

On a $230,000 home, which is the average value in Franklin County, the taxes increased from $391 annually to $488.75 — a $97.75 increase or $8.14 per month.