Smithfield Proposed Budget Keeps Tax Rate Unchanged, Adds Fire Department Positions

Proposal maintains the 45-cent tax rate with no immediate utility increases

SMITHFIELD, N.C. — Interim Town Manager Kimberly Pickett has presented a proposed balanced budget for the Town of Smithfield for the 2026-27 fiscal year, outlining continued investments in public safety, infrastructure and capital improvements while maintaining the current property tax rate and avoiding immediate utility rate increases.

The proposed budget was submitted to Mayor Andy Moore and members of the Town Council on May 15 and is scheduled for a public hearing on June 2 at 7 p.m. in the Town Hall Council Chambers.

In her budget message, Pickett said the proposal was developed with input from department heads and staff and was designed to continue moving Smithfield forward “both economically and conservatively.”

The proposed General Fund property tax rate remains at 45 cents per $100 valuation, while the Downtown Service District tax rate would remain at 16 cents per $100 valuation. (Revenue neutral tax rates were listed at 42.5 cents and 15.8 cents respectively.)

The proposal includes no immediate increases to water, sewer or sanitation fees despite rising wholesale costs from Johnston County and planned wholesale electric increases from ElectriCities. Town officials said utility rate studies are underway and future recommendations could return to the council later in the fiscal year.

Johnston County has notified the town of a recommended 10 percent increase in wholesale sewer treatment rates effective Sept. 1, 2026, according to the budget document. ElectriCities is also planning wholesale and rider increases equivalent to a 4.5 percent electric rate increase for customers.

The proposed budget adds four new full-time positions, including three Battalion Chiefs in the Fire Department and one Facility Maintenance Worker in the Parks and Recreation Department.

The budget proposes $1,093,082 in General Fund capital expenditures, $1,775,000 in the water plant budget for water system improvements, $2,020,480 for water and sewer capital improvements, and $982,529 for Electric Department capital initiatives.

Among the larger infrastructure projects, the Water and Sewer Fund includes $250,000 for inflow and infiltration reduction work, $150,000 for lift station repairs, $300,000 for AMI-Nexgrid integration, $100,000 for water line upgrades and $35,000 for digitized mapping. The proposal also sets aside $1,185,480 in capital outlay funding for improvements to Pump Stations No. 1 and No. 11, fire hydrant maintenance, water relocation work along U.S. 301 and the purchase of a mower.

Electric Department capital spending also includes $900,000 for materials such as wires and transformers.

The proposal continues Smithfield’s ongoing street resurfacing efforts, with $900,000 budgeted through Powell Bill proceeds and General Fund transfers.

The budget additionally calls for transferring $925,000 in unrestricted fund balance reserves toward future purchases, land acquisition for a future fire station and a new sanitation truck.

The Fire Department section of the budget outlines ongoing investments in equipment and staffing. A replacement heavy rescue truck funded through ARPA remains in production and is expected to arrive in July 2026, while funding is also being reserved toward the future replacement of Fire Engine Four.

Town officials noted Smithfield has maintained strong fund balance levels in recent years. According to the proposal, unrestricted General Fund balance remained above 114 percent in the past fiscal year, while the Water and Sewer Fund maintained a balance above 100 percent and the Electric Fund above 70 percent.

The proposal includes $2,227,046 in non-departmental expenses, including $287,850 for the Smithfield Johnston County Library, $649,750 in economic development incentive tax reimbursements and an additional $12,000 for local schools.

Tourism-related funding in the proposed budget includes $60,000 for the Ava Gardner Museum and $120,000 for Downtown Smithfield Development Corporation administrative services.

The budget also includes funds for increasing retirement contribution costs for local governments statewide. Smithfield’s employer contribution rate to the Local Government Employees Retirement System would increase from 14.35 percent to 15.10 percent for general employees and from 16.10 percent to 17.10 percent for law enforcement officers.

Within the Police Department, the proposal notes the agency remains fully staffed and recently earned its third reaccreditation from the Commission on Accreditation for Law Enforcement Agencies, commonly known as CALEA.

Parks and recreation projects are also included in the spending plan. The proposal budgets $152,500 for park and equipment improvements and another $122,500 for improvements at the Smithfield Recreation and Aquatics Center in partnership with Johnston County Public Schools.

The proposed budget also outlines several long-term debt obligations currently held by the town, including financing for the 2023 water plant expansion, 2021 Police Department expansion, 2019 ladder truck purchase, 2014 Smithfield Crossing project, and a 2015 electric substation loan.