Lenoir County commissioners weigh one-cent tax cut during budget work session
Lenoir County commissioners may consider lowering the proposed FY 2026-27 property tax rate by one cent after a June 1 budget work session focused on taxpayer relief, county services and long-term capital needs.
County Manager Michael James said the recommended budget totals a little more than $105 million and originally maintained the current tax rate of 67.5 cents per $100 valuation. The budget includes implementation of the 2025 pay study, more than $3 million in employee pay adjustments, funding for the first year of a volunteer fire department sales tax payment and a general fund contribution for transit operations.
Commissioner J. Mac Daughety asked the board to consider adopting the manager’s recommended budget with a one-cent reduction, lowering the rate from 67.5 cents to 66.5 cents.
“I would hope that the board would give strong consideration to a budget as recommended with a one-cent tax reduction for our citizens to show them that we hear them and we too are concerned about their struggles,” Daughety said.
James said staff reviewed the numbers and determined the county could accommodate the reduction, but he cautioned that each penny equals about $630,000 in revenue.
“One penny is over a half a million dollar reduction in revenue,” James said. “Can we do it? Yes. Is there a trade-off? I believe there is.”
The discussion followed questions raised during earlier budget talks about whether the county should provide tax relief after revaluation. James said revenue-neutral taxation does not mean every taxpayer’s bill stays the same. Instead, it means the county collects roughly the same amount of revenue after reappraisal. Individual tax bills depend on how much each property’s value changed.
Commissioner Preston Harris said he supported considering the one-cent reduction, but said the county also has to be prepared for emergencies.
“One hurricane or one tornado, then we would really see the reality of how much money we actually have in our reserves,” Harris said.
The proposed budget also includes increased operating funding for Lenoir County Public Schools, raising the allocation from $10.6 million to $11 million. James described the school funding as a “bridge budget” while county and school leaders work through long-term needs.
Transit operations were also discussed. James said the county has treated transit as an enterprise fund, but rising costs and limited fare revenue may make that difficult in the future. Staff plans to review possible models, including regional partnerships and comparisons with surrounding counties.
Commissioners also discussed major capital needs, including courthouse renovations and a future EMS station project. James said the courthouse project is not cosmetic, citing aging steam pipes, HVAC issues and plumbing problems.
“It’ll be this board or a future board,” James said. “Somebody at some point in time is going to have to address that courthouse.”
The board also reviewed limited budget additions, including two tax appraiser positions to support a four-year reappraisal cycle and a full-time farmers market and commercial kitchen manager. Dr. Tammy Kelly, director of Lenoir County Cooperative Extension, said the market and kitchen need dedicated staffing to reach their full potential.
Commissioners did not vote on the FY 2026-27 budget Monday. The budget public hearing is scheduled for June 15, when commissioners may make changes before adoption.
In other business, commissioners approved a memorandum of understanding with Duplin, Greene and Wayne counties to continue the Eastern Carolina Rural Planning Organization under a new structure, with Wayne County serving as the lead planning agency.
The board also approved a $5,790 demolition bid to Rick Bostic Construction for a property at 3331 Anita Drive and authorized a not-to-exceed $200,000 purchase order to Carolina Bay Construction and Maintenance LLC for a sheriff’s annex at the Deep Run EMS facility.
Commissioners also approved moving the county’s community recovery opioid budget into a separate opioid settlement fund for reporting and tracking purposes.
