Selma Proposed Budget Keeps Tax Rate Flat But Raises Water, Sewer Fees

SELMA, N.C. – The Town of Selma is proposing a $31.9 million budget for the 2026-27 fiscal year that would keep the property tax rate unchanged while increasing water and sewer fees and providing town employees with a 5 percent cost-of-living raise.

Interim Town Manager Phillip McDaniel presented the recommended budget to the mayor and town council, describing the spending plan as focused on public safety, operational efficiency and preparing for future growth.

The proposed overall budget totals $31,915,416 across all funds, representing an approximately 3 percent increase from the current amended budget.

The proposed General Fund budget totals $11.29 million, which McDaniel said is a 7 percent decrease compared to the current fiscal year.

“The goals guiding the General Fund budget preparation: pristine and efficient operations, support of Public Safety, and big picture thinking,” McDaniel wrote in his budget message to council members.

Under the proposal, Selma’s property tax rate would remain at 60 cents per $100 valuation. Electric rates would also remain unchanged.

However, residents would see increases in several utility-related fees.

The proposed budget includes a 6 percent increase in sewer rates and a 5 percent increase in water rates, which town officials said are needed to address rising operating costs and recommendations from the town’s capital improvement planning process.

The sanitation fund would also introduce a proposed $10 recycling cart fee.

McDaniel said employee retention and compensation remain priorities in the proposed spending plan.

“Our most valuable asset is our dedicated staff,” McDaniel wrote. “We strive to reward well-trained staff that understand and carry out our mission every day.”

The proposed budget includes a 5 percent cost-of-living adjustment for employees, maintains the town’s 4 percent contribution to the North Carolina 401(k) plan, fully funds employee healthcare and continues local government pension contributions.

McDaniel also referenced previous financial difficulties faced by the town while emphasizing Selma’s current position moving forward.

“Our Town is strong and in an excellent position for the future,” he wrote. “We will also remember the past and the situations that have caused shortfalls that we have strived to overcome.”

Town officials are expected to review and discuss the proposed budget in the coming weeks before adoption ahead of the new fiscal year beginning July 1.