‘Death By 1,000 Cuts’: Benson Manager Blames Years Of Overspending For Crisis

Proposal includes personnel freezes, department restructuring and renewed focus on rebuilding reserves

BENSON, N.C. – Benson Town Manager Dane Rideout told town leaders Tuesday night the Town of Benson is facing a “crisis across all departments” as officials work to recover from years of overspending, depleted reserves, and structural budget problems that have left the town with a negative fund balance estimated at approximately $2.75 million.

Rideout, who has been on the job about five months, outlined his proposed budget for the fiscal year beginning July 1 during a lengthy Benson Town Council meeting that also featured emotional public comments centered on the Benson Fire Department, staffing concerns, and accountability for the town’s finances.

“There are no funds in the rainy day funds across the Town of Benson,” Rideout said. “All those funds had been expended when I started.”

Rideout said the town had consistently ended fiscal years spending more money than it generated in revenue while also spending reserve funds that should have been maintained for emergencies and future capital expenses.

“We pick up a rock and three or four more problems crawl out from underneath it,” Rideout told council members. “It’s a mess.”

According to Rideout, Benson nearly missed payroll in July 2025 before an amended budget was adopted later with interim town manager Steven Herrell. He said the town is now on track to finish the current fiscal year in the black for the first time in several years, though additional expenses continue to surface.

“We have enough money in the bank for daily operations,” Rideout said. “But we have to do tough things across all departments.”

Rideout said Benson’s problems developed over several years through a combination of overspending, failure to increase utility rates, infrastructure costs absorbed by the town instead of developers, and projects that exceeded budget estimates.

He said Benson had not adjusted utility rates in approximately 13 years despite rising operating costs, resulting in the town subsidizing utility customers with general fund dollars. “If a widget cost 10 cents, Benson was selling it for 8 cents,” Rideout said.

Rideout also said council members in prior years were reportedly told money was being placed into reserve accounts for future needs, including money for a new fire truck, but the funds were no longer available. “At one time council was told it was $250,000 on paper, but there is no money in the bank,” Rideout said. “It was all spent.”

He described the situation as “like rearranging the deck chairs on the Titanic.”

Rideout also pointed to delayed contract renewals involving wastewater treatment agreements with Four Oaks and Meadow (Johnston County Public Utilities) as an example of missed revenue opportunities.

“If we would have let that contract two years ago, revenue would be up by $300,000,” Rideout said, calling it “death by 1,000 cuts” and “poor administrative oversight.”

The proposed budget includes significant cost-cutting measures, including a proposed 20 percent reduction in personnel across the town workforce primarily through vacant and unfilled positions. Of 13 positions being considered for elimination in the proposed new fiscal year budget, 11 are currently vacant.

Rideout said no current employees are proposed for layoffs at this time and that the town’s goal is approximately $1 million in savings.

“We’re looking at saving nickels and dimes,” Rideout said. “We’re going to try to do more with less.”

Rideout said Benson currently has 59 full-time employees in addition to part-time staff, and personnel and benefits remain the town’s largest expense. He said benefit costs alone are projected to increase by approximately $178,000 beginning July 1 even without salary increases.

Rideout also recommended against cost-of-living raises for the next several years, criticizing a previous recommendation made in March 2025 by the former town manager for raises ranging from 4 to 15 percent.

“That’s a forever gift that keeps on giving a budget already in a deficit,” he said.

The proposal also includes combining the town’s human resources and finance departments, reviewing contracts and expenses, and continuing efforts to identify unnecessary spending.

Fire Department Funding And Staffing
Fire department funding and staffing concerns drew the largest public response during Monday’s meeting.

Rideout said town officials reviewed the fire department budget “line by line” after hearing concerns from firefighters and residents. He said most proposed reductions had been restored except for three vacant firefighter positions.

“We’ve heard you loud and clear,” Rideout said.

He said the town needs three full-time firefighters per shift but estimated the cost at approximately $300,000 annually.

“I am their biggest cheerleader,” Rideout said of firefighters. “We just don’t have the money.”

Rideout said he met with Johnston County officials Tuesday seeking financial assistance for the three full-time positions, arguing Benson residents already pay substantial county taxes in addition to town taxes.

He also said future growth, including the planned Vulcan Materials facility, will place additional demands on emergency services. “No one knows what fire concerns are for a 1.1 million square foot facility,” Rideout said.

Rideout said incentive agreements involving the Vulcan project would eventually provide a major economic benefit for Benson once grants expire, predicting in 15 years Benson’s tax revenue would double.

“It will be such an economic boost to this town,” Rideout said. “It’s like winning the World Series.”

During discussion following the budget presentation, the town council unanimously approved a motion restoring the position of Assistant Fire Chief Anthony Byrd with continuation of benefits and compensation.

Mayor Max Raynor apologized publicly to Byrd and members of the fire department.

“There was no intent to weaken the fire department,” Raynor said. “You are respected by this community and ask for forgiveness.”

Raynor said the town’s decision regarding the three firefighter positions was “not a no, but just not right now.”

Several residents sharply criticized town leadership during the public comment period.

Belinda Barefoot questioned where money previously earmarked for the fire department had gone and also raised concerns about a travel allowance for the town manager.

Rideout responded that he earns approximately $10,000 less than the previous town manager and does not take health insurance benefits, resulting in savings for the town.

Susan Wallace said residents could “clearly see” previous town administrators “were not doing their jobs” and voiced concerns about police staffing as development continues around Benson.

Ann Parker criticized both current and previous town leadership over the town’s financial condition. “If my house was run the way you run this town for the last five or six years it would be dead,” Parker said.

Laverne Richardson questioned town salaries and hiring practices while calling for greater oversight by commissioners. “We the citizens of Benson deserve better,” Richardson said.

Pamela Snead criticized customer service within the utility department and urged employees to treat residents with more respect.

Glen McLamb encouraged the town to reduce spending rather than eliminate positions. “When you get down and you get in debt you can’t hire yourself out of debt,” McLamb said.

Jackson Wood asked about reports the Benson Fire Department’s first responder program could be eliminated. Mayor Raynor responded the program would remain in place.

As the meeting concluded, Raynor urged residents and town leaders to move forward together. “I hope we can leave here united and put our differences aside.”