Smithfield Town Manager’s Proposed Budget Recommends 47-Cent Property Tax Rate: Above “Revenue Neutral”
By The Smithfield Weekly Sun
SMITHFIELD – Town Manager Mike Scott released his proposed 2025-26 budget Wednesday afternoon, sticking with a recommendation he shared with the Town Council last week for a property-tax rate of 47 cents per $100, even though Smithfield’s “revenue neutral” rate after this year’s real-estate revaluation works out to 42 cents based on guidelines provided by the N.C. Local Government Commission.
Smithfield’s tax rate has been 57 cents for several years, but that was before the county’s revaluation raised the total taxable value of real estate within the town’s borders by 70% (changes for individual properties vary – some significantly higher, some lower than the overall percentage).
There’s better news for Smithfield residents in proposed fees for utilities and sanitation services:
- Electricity rates are scheduled to go up 3.5% July 1, but that’s less than the 6% increase that had been expected from ElectriCities, the town’s power provider, before it revised the new wholesale rate for Smithfield and other municipalities.
- Sewer rates will rise by 3.1% September 1, but that’s less than the 10% increase in what the county will begin charging the town for sewage treatment on that date. Manager Scott proposes an appropriation of $300,000 from Water & Sewer Fund reserves to cover most of the extra sewage expense from the county. The town’s retail water rates, meanwhile, won’t be changed this year.
- Rates for garbage and yard-waste collection also won’t go up.
More good news is a stepped-up street-resurfacing program. The town manager is recommending a transfer of $2 million from the town’s General Fund Balance to supplement an expected Powell Bill allocation of $440,900 from the state for Smithfield’s street maintenance. That comes on top of another $2 million coming out of reserve funds to repave Outlet Center Drive and a portion of South Third Street before the end of the current fiscal year June 30.
The latest audit of the town’s finances showed a General Fund Balance exceeding $17.6 million as of last June 30.
The town manager’s budget includes funding for seven new full-time positions in the General Fund: four firefighters and an additional inspector in the Fire Department, an additional Public Safety Aid in Police, and two Sanitation collection workers. The Water & Sewer Fund will cover the cost of a new “line locator/inspector position.”
Regarding existing town staff, Mr. Scott says “the town will continue to make a concerted effort to provide competitive benefit packages and salary packages to its employees, to maintain retention and improve recruitment efforts.” (He told council members during a recent budget workshop that he’s budgeting funds for pay raises of either 4% July 1 or 5% September 1.)
Mr. Scott’s proposed General Fund budget for fiscal 2025-26, which begins July 1, totals $24,505,567, supported in large part by property-tax revenues.
The Electric Fund totals $18,961,000, dependent on electricity sales to customers for most of that amount. The Water & Sewer Fund totals $18,754,865, which is mostly covered by the town’s monthly water and sewer charges. The town no longer transfers any surplus revenues from either of those two “enterprise” funds into the General Fund as was done years ago.
A public hearing on the proposed town budget is scheduled during the Town Council’s next regular meeting at 7 p.m. Tuesday, June 3.
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13 Comments
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Property tax is a scam.
How would you propose to raise the funds needed to provide for the county. We need basic infrastructure, roads, employees that serve the county, law enforcement, etc.
You obviously don’t know what you’re talking about. That’s a misconception.
@CW: That’s SOCIALST thinking! Everything should be privatized. If you want police protection, hire your own security company. If you want water, dig your own well. If you want to live in a SOCIALST paradise where everyone chips in, go move to Europe! #MAGA
You don’t know squat! Trump just denied North Carolina’s request for FEMA relief after Hurricane Helene, calling it “not warranted.” He campaigned in North Carolina, promising to help rebuild while spreading lies about President Biden not helping residents. No money for North Carolina, but apparently he has $90+ million to throw a military parade that just happens to fall on his birthday. How’s that for fraud, waste and abuse?
In the U.S., “socialism” is often mischaracterized as government overreach or a path to authoritarianism. In reality, the U.S. already practices partial socialism through programs like: Medicare/Medicaid, Social Security, Veterans’ benefits and public roads, libraries, and police/fire services. So, if your house catches on fire, get your water hose out and then let me know how that worked out for you and when the next hurricane or tornado comes through I don’t want to hear you b***hin’ about needing help. Dude, you’re on your own.
@Chris: I (and all true Americans) have INSURANCE and SAVINGS and INVESTMENTS. I’m ready for the next hurricane or tornado. Only Snowflakes expect a handout from the government.
TTT of you want to live under a Communist Tyrant Dictatorship move to Russia.
CW, you are so right and we are trying to help improve society by moving progressive policies into this backward way of thinking in JOCO. These extra tax dollars will help with housing and healthcare for all immigrants from all over that needs may include gender affirming care. These dollars can also help promote transgender women be more successful in women sports and to show support for the suffering of FREE PALESTINE people in Gaza. FOLKS PLEASE HELP SMITHFIELD MOVE INTO THE 21 CENTURY!!!
To some, every tax is a scam.
Yet, you want all the services provided.
There is NO FREE LUNCH..
Yet, so many complainers don’t hesitate to
spend thousands to get their pick up truck jacked up.
Go figure
What ever happened to revenue neutral? I guess that doesn’t apply in JoCo. The good old boy’s need their pockets lined.
7.7 million dollar grant was cancelled, the grant proposed was for broadband access. the grant ordered thru the Digital equity act. Of course this information came from USA today which seems to be very biased against Trump. this is my personal opinion of course.
Tell The Truth,
Your comment isn’t just arrogant—it’s un-American and anti-Christian. This country was built on the idea of e pluribus unum—from many, one. We look out for each other in times of crisis. That’s not weakness—it’s the foundation of a functioning society.
Even the wealthy rely on public infrastructure, FEMA, and government aid to protect their investments. As for your insurance? Good luck. Providers are bailing on coverage or raising deductibles sky-high because climate disasters are bigger, more frequent, and no longer profitable. You’re not immune—you’re just not hit yet.
And when Trump tanks the economy again—and he will—your savings and investments won’t protect you from runaway inflation, market collapse, or failed leadership. But go ahead, mock people for struggling. That’s definitely not what Jesus would do. Funny how the man who fed the poor, healed the sick, and lifted the outcast somehow gets forgotten when it’s time to show actual compassion.
You want to be ready for the storm? Try packing some humility. It’s worth more than a policy you’ll never be able to collect on.
Holy cow why does everything turn to national politics. There’s one guy saying that there should be no tax and everyone should hire their own private security (and apparently fire fighters), and yet another person who wants JOCO to “move into the 21st century” by building more housing for immigrants and ensuring transgender women are successful in women’s sports (although this may be tongue in cheek it just seems too over the top).
This is about the town. I understand we had to have a headline (which chose to focus on the fact the tax rate will not be revenue neutral), but for all of you too lazy to read the article there is actually some good news embedded. The town is upping it’s street paving game (desperately needed), and the electric rate is going up much less than electricities rate increase. The sewer rate is going up less than the County is going to increase it’s rate. The town is budgeting for four additional firefighters (definitely needed the way that traffic crashes have increased).
We shouldn’t view everything in a Republican v Democrat national politics lens.