Council voted unanimously, 5-0, last Thursday to use reserve funds to pay off the mortgage on the town hall and enact a cigarette tax to rebuild the reserve, depending upon the public’s input.

Scott Hudson made the motion and Jennifer Hodges seconded it. Voting in favor of the motion were Hudson, Hodges, Joe Sliakis, Randy Reeves and David Jones. Absent were Tina Davis and Irving Brittingham.

Council will hold a public hearing on the cigarette tax at its January 5 meeting.

The payoff and possible tax were recommended by the finance committee following a special meeting two weeks ago. The combination should allow the council to finally balance the fiscal year 2012 budget, which was projected to include a $23,000 deficit.

Money from town certificates of deposit will be used to pay the remaining principal of some $111,589 on the town hall mortgage. Paying that off would still leave the town $260,000 in reserves, said town manager Patrick Frere.

Imposing a cigarette tax of 15 cents per pack based on an estimated 4,000 packs per week sold in White Stone could yield the town an estimated $31,200 per year, said Frere. After an estimated $4,704 in administrative fees, the town could net $26,495.

At that rate, said Frere, it would take the town just over four years to restore the depleted reserve fund.

Frere has been consulting with town officials in Kilmarnock, where a cigarette tax is already in place.

“Kilmarnock has been great to deal with,” said Frere, “and I imagine our ordinance will be mirrored after theirs.”

After the public hearing in January, the town could pass an ordinance and have the tax in effect by March, said Frere.

Reeves said he wanted to convey to future councils, which may or may not include current members, that “this council would like to get rid of the cigarette tax” when the reserve is re-established. Town attorney Matson Terry assured Reeves that sentiment could be included.

In other business, council decided by consensus to table a decision on the Metrocast cable TV franchise renewal.

Frere reported that he and Mayor Lloyd B. Hubbard met with Lancaster County administrator Frank Pleva, assistant county administrator Jack Larson and District 5 supervisor Wally Beauchamp regarding the process of borderline adjustment. The idea of extending White Stone’s boundaries has come before the council dozens of times in the last 10 years.

Initially, the thought was to extend the boundaries to bring in more school-age children and thus more revenue into the town, said Hubbard.

He said the meeting was a way of “starting to break the ice” on the process.

Frere also reported that White Stone’s Neighborhood Watch program has held several meetings and will have a work detail to install signs this Saturday. All interested citizens are urged to attend. Volunteers will meet at the town hall at 9 a.m.

The Neighborhood Watch program is sponsored by the town council’s public safety and patrol committee, the town police department and the Lancaster County Sheriff’s Office.

In his report, Police Chief William Webb said $1,414 in fines were issued in the town last month. With 16 calls for service, Webb said, “it’s one of the biggest months we have had for calls.”