Johnston County Proposed Budget Avoids Tax Increase But Relies On Reserves
SMITHFIELD, N.C. – Johnston County residents would avoid a property tax increase under a proposed 2026-27 budget unveiled Monday, but the spending plan would rely on millions from reserves, postpone dozens of requested positions and introduce higher utility and landfill fees as county leaders attempt to manage mounting costs tied to rapid growth.
County Manager Rick Hester presented a proposed $421.9 million General Fund budget that keeps the county property tax rate at 52 cents per $100 valuation. The countywide fire tax rate would also remain unchanged at 11.5 cents per $100 valuation.
The proposed budget represents a 2.2 percent increase over the current fiscal year.
Although county officials highlighted the decision to hold the tax rate steady, the proposal depends on an $8.7 million transfer from General Fund reserves to balance the budget — a move that comes as Johnston County continues facing rising operational costs, debt obligations and demands for expanded public services.
“But it’s possible we won’t need that money,” Hester said. “Historically, the County has annual savings from operations — job vacancies as an example of savings — which might allow us to keep most or all of that $8.7 million in reserves.”
The proposal comes as Johnston County continues experiencing significant population growth, placing additional strain on schools, emergency services, infrastructure and public utilities.
Some of the increased spending stems from new debt payments tied to the Clayton High School rebuild and voter-approved bond projects for Johnston County Public Schools and Johnston Community College.
“We’re also seeing continued pressure from rising health insurance costs,” Hester said.
Education remains one of the largest portions of county spending in the proposal. The budget includes $113 million for Johnston County Public Schools operations and another $3.5 million for school capital needs. Johnston Community College would receive just over $10 million for operations and $1.2 million for capital.
Despite the county’s continued growth, the proposed budget pauses requests for 28 new tax-funded positions across several departments, including Emergency Services, 911 Communications and the Sheriff’s Office.
The delayed positions highlight the financial balancing act facing county leaders as demands for public services continue to increase.
“However, I do recommend moving forward with four new positions in Public Utilities, since that department gets its funding from water and sewer customers, not taxpayers,” Hester said. “We would propose to begin filling those four positions in October.”
Residents could still see increased costs elsewhere.
The proposal includes planned increases in water and sewer rates, though county officials have not yet publicly detailed the scope of those increases. Hester also recommended raising landfill tipping fees from $48 to $50 per ton while keeping county convenience sites free for residents.
The proposed budget additionally includes funding for employee pay raises and salary adjustments tied to a compensation study intended to help the county remain competitive in hiring and retention.
“I’ll present a specific recommendation to the Board of Commissioners in the coming weeks,” Hester said regarding employee raises. “Also, in keeping with a pay study, I have included dollars for those cases where we need to raise salaries to remain competitive in the marketplace.”
While the proposal avoids a tax increase this year, the combination of reserve spending, delayed staffing requests and rising service fees suggests county officials are attempting to manage growing financial pressures without placing additional burden on property owners ahead of another year of expansion.
Commissioners are expected to continue budget discussions during meetings on June 1 and June 15. A public hearing on the proposed budget is scheduled for 10 a.m. June 1.
“Overall, this budget reflects our commitment to financial stewardship while continuing to meet the needs of a growing county,” Hester said.
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Taxes will increase . All they have to do is re-assess property values and taxes go up. The rate might not but the taxes will.
Check out the inflated salaries that all these county employees are getting
They already did that and raised our property taxes by 75%’ !!!
Stop the growth. Restrict building permits unless the applicant was born in NC!!!
So, due to rapid growth “approved by the board” in most cases, you’re telling everyone that you can’t operate with more tax revenue coming in due to this growth? Can any municipality operate without “sticking it” to the residents? Can we get our own version of DOGE? I bet there are funding lines that can be paused/cancelled until funding is at a level to support NON-Essential programs.
sounds like a self-inflicted problem
Can we not get audits into each department? Especially school spendin, social services and salaries?
Between inflated property assessments and thinking of tax hikes, local government is squeezing every dollar they can from residents. Our elected leaders are failing the community while protecting their own interests. We desperately need new leadership in office to break up this entrenched system.
Exactly! They think that by “throwing a bone whilst taking a steak” everyone will be happy and distracted but ultimately…… they’ll get their $$, in the meantime….. families are drowning 😢 it’s insulting that they think we are all stupid.
The bottom line is uncontrolled growth and massive housing complex neighborhoods will always end up costing more money than they ever bring in. It is always a net loss because the needs for those new houses increase the needs for the services such as: police, fire, EMS, water, sewer/waste, electricity, roads, schools, medical care,. There is no amount of tax revenue that will balance the uncontrolled growth. The county commissioners, developers, builders are all in cahoots with each other. it is a complete and total scam and of course we the hard-working middle class end up paying for it because no one’s willing to stop it.
Does all this new construction have impact fees to fund all the increased needs? Every new build should have an impact fee attached to spare existing residents and businesses from escalating taxes
This is what should happen but the General Assembly has outlawed them. Why?
The Sheriff’s Office can not fill the vacancies they already have why are they getting more positions to go unfilled. How about the inflated salaries of some of department heads at the county.
You are correct, they can’t fill vacancies but the Seriff office was denied any new positions if you read article.
Look at the johnston county salaries!!!!
Rate and fee hikes! Wait until the GA passes restrictions on counties, cities and towns preventing them from raising property taxes. Water, Sewer, Electric city rates, sales taxes will go through the roof, as will the fees you pay for everything. Limiting taxes sounds good, but the money will come from somewhere, your pockets $$$$
My family have lived here since 2012 x2 moves. looking into childcare……one household wage would’ve paid childcare so we had to choose. I genuinely do not know how people do it under the current problems and constant increases, let alone those who are single income families. I’m praying for y’all.
They have the audacity to say they cut the tax rate after jacking up our property values an average of 70%, which still caused a property tax bill 30% higher on average. They have ruined our beautiful county with an unsustainable growth rate. Despite higher tax bills and more taxpayers, they’re saying we can’t afford to higher more deputies, which is urgently needed. Where is the money going?
No increase for 26-27 but the county sure raped us in the 25-26 year with unjustifiably high assessments and high tax rates.
Why are the funds necessary for this “growth” be it for schools, utilities, trash, roads, and other resources, not built into the development costs? This would automatically slow the growth and overuse of resources. If it had to be paid upfront along with each new development, it would ease the tax burden of the citizens already carrying the load.