Zebulon — The town’s proposed budget anticipates a 10-percent decrease in Powell Bill revenues, but there’s a catch.

According to the state Department of Transportation, Powell Bill funds are granted from the state to cities and towns for the purposes of maintaining, repairing, constructing, reconstructing or widening of streets owned by the town, or for planning, construction and maintenance of bikeways or sidewalks along public streets and highways.

The DOT distributes money to towns through a formula based on the population of each town and the miles of roadway the town owns.

In high-growth areas, this figure would normally rise each year, as population grows and new roads are either being built or being planned for the future.

Zebulon Finance Director Emily Lucas said although the state’s intent is to lower the Powell Bill by an estimated 10 percent, it’s actually a return to prior year funding levels.

The town had received more money than normal last year as the state paid back money that was withheld in 2002 as Governor Mike Easley worked to balance the state government budget.

Two years ago the state doled out approximately $132,000 to Zebulon through the program. In the 2007-08 fiscal year, at the inflated rate, the town received $155,000 and this year the town is expected to receive $142,000 — a sizeable amount less than the previous year.

But if the 2006-2007 fiscal year is compared to the proposed 2008-2009 figure, a small growth is present.

Last year the state granted towns the standard amount of money, as adjusted for growth through the allocated formula, plus the money the state withheld. With no extras on the way for this year, the reimbursement is back to normal, representing a lower overall number, but not in the overall scheme of things.

Easley kept his promise, which Lucas said doesn’t always happen in full when funds are pulled from one department to the next.

While this past fiscal year the town received $25.12 per person, the town is expected to receive in the range of $22.90-$23.60 for 2008-2009.

Lucas said town staff has plans to use this year’s money for a new sidewalk on Vance Street — a project with an estimated cost of $80,000. Additional money will be used toward minor repairs, cleaning and general maintenance of all streets.

Although a town can roll over Powell Bill funds for up to 10 years, Lucas said it would likely never go unspent.