April 21. Mayor Woody Washam, a strong mayor in a weak mayor form of government, says property owners will likely not see an increase in taxes when the 2020-21 budget comes up for a vote in June.

“While the town has many needs and citizen expectations, the board and I feel that this is not a year to burden citizens with increased taxes,” Washam said.

Town Manager Andrew Grant and the board are in the midst of budget preparations for the upcoming fiscal year. The budget must be adopted by June 30.

$24MM budget

MAYOR WOODY WASHAM

The current fiscal year General Fund Budget totals $24.22 million, an increase of $1.28 million or 5 percent from FY 2019. The increase was due primarily to funding of certain capital projects such as the Town’s cost share of NCDOT road projects.

He said there is no momentum for an increase in “these critical times.” There are five commissioners on the town board, all of whom have a vote. The mayor does not have a vote, unless there is a tie.

The 2019 property revaluation was a mixed bag revenue-wise, with some property owners, particularly businesses, facing much higher valuations, while some homeowners saw valuations go up very modestly.

The current budget is slightly above “revenue neutral,” where tax revenue would have been flat based on a new tax rate.

Difficult times ahead?

The town is gearing down for decreased revenues particularly related to sales tax and the hotel occupancy-prepared food tax.

“However, I am optimistic we will find appropriate expense savings to offset some of this.  So far, the work of town staff in presentations and analysis has been stellar,” Washam said.

The pandemic is having a relatively small impact on town finances thus far, although that may change.

A review of town finances shows a revenue loss of $297,342, primarily due to fees for canceled park programs. Other areas where the town will experience losses include sales, utility and tourism taxes.

However, the town will save $378,577 in expenses, primarily related to the canceled park programs, which will more than offset the loss in collected fees.

3-month lag

But Town Manager Grant said there is usually a three-month lag in obtaining sales tax figures. The impact of the stay-at-home regulations on the town’s finances may not be apparent until June or later.

Town staff is expected to a preliminary draft of the budget to the town board  next month.