Lenoir County commissioners get first look at $105 million proposed budget
Lenoir County commissioners received their first public look Monday at a proposed 2026-27 budget that would keep the county’s current tax rate in place while increasing spending for employee pay, school capital needs, tax reappraisal work, transit support and several ongoing capital projects.
County Manager Michael James presented the recommended budget during the May 18 Board of Commissioners meeting.
James said the recommended budget totals a little more than $105 million for the general fund and special revenue funds, a 3.6% increase from the current year. The proposal would maintain the county’s current tax rate of 67.5 cents per $100 of valuation.
“No tax increase was considered,” James told commissioners.
The budget presentation came after a year in which commissioners reduced the tax rate from 84.5 cents to 67.5 cents following the county’s 2025 reappraisal. James said the county’s total assessed value increased by more than $1.6 billion after reappraisal, and last year’s budget included a $101 million operating budget, a 17-cent tax rate reduction, added funding for Lenoir Community College’s Jim Perry Aviation Center of Excellence and capital funds for Lenoir County Public Schools roof work at North Lenoir High School.
James said the new budget was built using a zero-based approach, meaning departments had to justify requests instead of automatically carrying forward prior-year spending.
“We always want to live within our means,” James said, adding that the goal was to remain conservative while continuing core county services and strategic priorities.
The largest budget driver is the county’s 2025 pay study. James said the recommendation includes a little more than $3 million to implement the study, with about $1.3 million going to the Sheriff’s Office, $600,000 to social services and $400,000 to emergency services. He said the goal is to retain current employees and make the county more competitive when hiring.
The proposal also includes two new appraiser positions in the Tax Office as the county moves toward a four-year reappraisal cycle. James said the additional staff would move some of that work in-house and reduce the need for a future third-party reappraisal contract that could cost about $1 million.
Another proposed new position would support operations at the Lenoir County Farmers Market and its commercial kitchen. James said the county sees room for more community use of the kitchen if someone is dedicated to marketing it and managing operations.
The budget recommends increasing Lenoir County Public Schools’ operating contribution from $10.395 million to $10.6 million. James said the school system requested a $1.6 million increase, but the recommended budget includes a $205,000 increase. He said the district has cost pressures that commissioners may need to discuss with the Board of Education in future years.
The budget also recommends increasing school capital funding from $433,000 to $1.375 million, with much of that going toward HVAC and roofing work at Northwest Elementary School. Lenoir Community College would remain at its current funding level after receiving a $400,000 increase last year.
The budget also accounts for a possible $557,000 payout tied to the county’s fire district sales tax settlement. James said county officials recently met with fire departments and that the departments are taking the proposal back to their boards. He said he expects the matter to return to commissioners for final approval if an agreement is reached.
James said transit will need a deeper review during budget work sessions. The proposed budget allocates $357,000 in general fund support for transit, though James said staff does not expect to spend the full amount if costs can be reduced or revenues adjusted.
The county also faces about a $400,000 budget impact from a federal reimbursement change tied to SNAP administration. James said counties have been reimbursed at 50% for the cost of employees administering the program, but that reimbursement is expected to drop to 25% in October. He said SNAP recertifications also are expected to move from once a year to twice a year, increasing workload without a proposed staffing increase in Lenoir County.
James said the budget uses a little more than $1 million from fund balance. He said the county continues to lower debt and has largely used cash, rather than borrowing, for capital projects. He also noted that future debt may be considered for courthouse and EMS station projects.
Commissioners did not vote on the budget Monday. Commissioner J. Mac Daughety said he had “lots of questions” and said the proposal did not include enough relief for taxpayers. James said the first scheduled budget work session would follow the board’s June 1 meeting, but commissioners discussed the possibility of meeting sooner.
The meeting also included several other actions that will be in a future article.
