Jones County manager proposes budget with unchanged county tax rate, new fire district tax

Jones County Manager Kyle A. Smith has presented a proposed fiscal year 2026-2027 budget that would keep the countywide property tax rate unchanged while adding a new dedicated fire protection tax.

The recommended countywide tax rate remains 74 cents per $100 of valuation, the same rate used in the current fiscal year. The proposal also includes a new 3-cent Fire Protection Service District tax intended to replace General Fund allocations to volunteer fire departments with a dedicated revenue source.

Across the major fund summaries included in the budget packet, the proposed spending plan totals $26.1 million. That includes a $20,979,779 General Fund, $3,244,702 Water Enterprise Fund, $1,161,137 Trust Fund, $374,583 Fire Tax District Fund and $354,962 Fire Protection Service District Fund.

Smith submitted the recommended budget to the Jones County Board of Commissioners under the Local Government Budget and Fiscal Control Act. In his budget message, he said the proposal reflects goals discussed by commissioners during a February retreat, including competitive wages and benefits for county staff, restrained operating expenditures, continued training support, larger capital projects and options tied to the county's fire study.

The proposed budget was scheduled for board review in May, with a public hearing and possible adoption targeted for June 1, 2026.

The county's estimated 2026 tax base is $1,231,610,630, up $49,331,401 from the figure used in the FY 2025-2026 budget ordinance.

Budget documents list taxable real property at $935,827,214, taxable personal property at $93,689,514, NCVTS property at $135,086,514 and public service company property at $67,007,388.

For FY 2027, one penny on the tax rate is estimated to generate $123,244. Using a 96.07% collection rate from the prior year's audit, the manager's message estimates a total levy of $9,120,056 at the 74-cent rate. The General Fund summary lists property tax revenue at $9,141,199, making it the county's largest General Fund revenue source.

The budget uses a lower collection rate than the previous comparison year. According to the manager's message, the collection percentage declined from 96.96% in the FY 2024 audit to 96.07% in the FY 2025 audit.

The proposed General Fund budget is $20,979,779, a 6% increase from the FY 2026 adopted budget of $19,800,176.

Property taxes account for 43.57% of General Fund revenues. Sales taxes are the second-largest revenue source at $3,565,336, or 16.99%. Social Services program revenue is budgeted at $2,400,382, followed by $1,293,179 in appropriated fund balance, $1,205,532 in licenses, permits and fees, and $1,144,614 in service fees and other revenues.

Sales tax projections reflect an overall 6.5% increase over current FY 2026 projections, according to Smith's message. The county's budget team said Jones County is somewhat insulated from retail and tourism fluctuations because about 54% of its sales tax revenue comes from Article 39, Article 42 and Article 46 sources that are not materially dependent on tourism or large retail establishments. The remaining 46% comes from Article 40 and Article 44-105-24 revenues distributed through statewide formulas.

Interest earnings are expected to decline. The budget estimates $638,327 in interest revenue, $60,442 less than the amount budgeted in the previous adopted budget.

Personnel remains the largest General Fund expense category at $10,711,481, or just over half of the fund. Operations total $8,354,967, while capital outlay is budgeted at $1,001,661.

The largest General Fund functions are the Sheriff's Office at $4,087,760, Public Schools at $3,345,381, Social Services at $3,292,154, Emergency Services at $2,127,274 and Health Services at $1,115,391.

The proposal includes a 2.6% cost-of-living adjustment for county employees and a $500 holiday bonus for qualifying staff. It also includes $30,000 for merit-bonus compensation, down $20,000 from the FY 2026 budget.

No new staff positions are included in the recommended budget.

Insurance costs are expected to increase. Property and liability insurance is projected to rise 2%, workers' compensation rates are expected to remain flat and health insurance is budgeted to increase 10%. A 2.4% increase tied to State Health Plan participants takes effect July 1, 2026, and is expected to cost Jones County $180,000 more than in prior years.

The most significant structural change in the budget is the proposed Fire Protection Service District tax.

The FY 2027 budget removes General Fund allocations to volunteer fire department organizations. Instead, the proposed 3-cent Fire Protection Service District tax would create a dedicated fund for fire protection. The Fire Protection Service District Fund summary budgets $354,962 in revenue and the same amount in expenditures.

Under the fund summary, Comfort, Hargetts Crossroads, Maysville, Phillips Crossroads, Pollocksville, Trenton and Wyse Fork fire departments would each receive $30,000. Maysville-Loco, Rhems and Western Carteret would each receive $2,000.

The proposal also includes $43,900 for run pay, which would be distributed twice per year based on call volume, and $95,062 for a restricted reserve. Smith's message says the reserve would be limited to capital, equipment, grant match and other fire protection purposes, with funds released only after Board of Commissioners approval through requests submitted by an established Fire Commissioner Advisory Group.

Existing fire tax district rates would remain unchanged. Those rates are 6 cents for Wyse Fork, 5.5 cents for Comfort, 5 cents for Maysville, 5.16 cents for Pollocksville, 4.39 cents for Trenton, 3 cents for Hargett's and 2 cents for Township 7.

The separate Fire Tax District Fund is budgeted at $374,583, up 2.9% from the current adopted budget. It includes $335,800 in fire tax collections and $38,783 in registered motor vehicle collections.

Public safety overall remains one of the largest parts of the county budget. Smith's message says the Sheriff's Office, Jail, EMS, Emergency Management, Fire and Rescue, Communications and Inspections budgets together requested an increase of $632,526. Public safety accounts for $7,305,810 of the county budget, with a county cost of $5,923,061, including recommended capital expenditures.

The proposed budget follows the county's interlocal funding agreement with Jones County Public Schools and the Board of Education.

The FY 2027 current expense allocation is $2,430,601, an increase of $260,000 from the prior adopted budget. Capital outlay is increased to $87,986.

In the General Fund summary, the Public Schools function totals $3,345,381, or 15.95% of General Fund expenditures.

Health and Human Services accounts for $4,466,836 of the county budget, with an expected county cost of $1,395,588. The division includes the Health Department, Social Services, the Senior Center, Veterans Services and Rural Transportation.

The manager's message says Health and Human Services spending is up $24,261 compared with the current year. County cost is projected at $891,772 for Social Services and $446,798 for the Health Department.

Social Services revenue is expected to increase by $165,287, while Health Department revenue is expected to increase by $30,773.

The Health Department budget reduces provider time from two days per week to one day per week, or 8.5 hours. Smith's message says maintaining provider availability, even at reduced hours, allows the department to continue receiving reimbursements that would otherwise be unavailable. The provider time is budgeted with 60% Public Health Infrastructure funds and 40% CarolinaEast Medical grant funds, with no local dollars assigned to that provider cost.

The Department of Social Services budget allocates 50% of the county IT Analyst position to DSS, based on tracked support time. That allows eligible reimbursement through the DSS 1571 process. The county plans to continue monitoring the position's actual time and adjust the allocation in future budget cycles.

The manager's message also identifies HR1 as a major budget impact because it changes reimbursement structures for several DSS programs. The reimbursable state and federal share has decreased, increasing the required county match by more than $100,000.

The proposed Water Enterprise Fund is balanced at $3,244,702, a 35.1% increase from the FY 2026 adopted budget.

Water enterprise revenue is budgeted at $2,393,500. The fund also uses $781,035 in appropriated fund balance, $63,967 in interest and $6,200 in service fees and other revenues.

The largest Water Enterprise Fund expense is capital outlay at $1,330,532. Operations are budgeted at $880,949, personnel at $783,824, interest at $138,751, transfers to other funds at $100,576 and principal retirement at $10,070.

Smith's message says capital reserve funds are being drawn down for the Public Works Complex, which is expected to be completed in the coming months. The project is budgeted with 80% of expenses coming from the Water Enterprise Fund and 20% from the General Fund. The budget message lists $800,000 for the complex in the Water Fund and $200,000 in the General Fund.

The proposed water fee schedule includes an approximately 5% increase in water usage fees, a $1.50 increase in the monthly minimum fee, and changes to tap fees and angle valve replacement charges based on labor and equipment component costs.

The proposed budget uses appropriated fund balance in several funds. Budget summaries include $1,293,179 in General Fund appropriated fund balance, $781,035 in Water Enterprise Fund appropriated fund balance and $363,262 in Trust Fund appropriated fund balance.

Smith's message notes that the North Carolina Local Government Commission does not recommend using fund balance to balance recurring expenses. He wrote that good fiscal policy is to budget fund balance for one-time expenditures, such as capital projects.

General Fund capital projects funded with appropriated fund balance include HVAC replacement and a large auditorium sound system upgrade at the Civic Center, radios for Emergency Services, the Sheriff's Office and volunteer fire and EMS departments, a VHF tower equipment upgrade for Emergency Management, $200,000 for the Public Works Complex, $20,000 for HVAC replacement at Pollocksville Library, $5,000 for wall and door upgrades at the Board of Elections, a $13,280 dump trailer for Landfill and Solid Waste, and $34,500 for cameras and in-vehicle chargers for the Sheriff's Office.

Water Fund capital items include $800,000 for the Public Works Complex and $30,000 for metering equipment.

The budget also includes a $50,000 disaster expense funded with fund balance. Smith's message says the funding would allow staff to begin arranging resources during a state of emergency before commissioners can meet and approve a formal budget amendment.

The county's General Fund balance policy calls for available fund balance to remain between 18% and 24% of budgeted expenditures. Amounts above 24% may be appropriated for one-time expenditures and may not be used for purposes that would obligate the county in a future budget.

The proposed Trust Fund is $1,161,137, down 1.8% from the current adopted budget.

Town tax bill and collection revenue accounts for $548,000, or 47.20% of the fund. The Trust Fund also includes $363,262 in appropriated fund balance, $89,000 in fines and forfeitures trust revenue, $70,770 in Extension trust revenue, $40,005 in DSS trust payee revenue, $38,500 in Sheriff trust revenue and $11,600 in miscellaneous trust revenue.

Trust Fund expenditures match revenues. The largest functions are tax collections at $548,000, Sheriff Trust at $176,475, Extension Trust at $154,244, Miscellaneous Trust at $116,143, Fines and Forfeitures at $89,000 and DSS Trust at $77,275.