La Grange recommended budget holds tax, utility rates steady
LA GRANGE — The Town of La Grange’s recommended budget for fiscal year 2026-27 would keep the property tax rate and base utility rates unchanged while funding street, utility, downtown, park and facility projects.
The recommended budget totals $10,679,482 across all annual operating funds, with an additional $3,235,839 appropriated through multi-year capital and grant project ordinances.
Town Manager Shawn Condon presented the recommended budget for the fiscal year that begins July 1 and ends June 30, 2027. The budget is balanced in each fund, according to the budget document.
Tax and utility rates
The recommended property tax rate is $0.328 per $100 of assessed value, unchanged from the current rate. The budget states the rate is the same revenue-neutral rate adopted after the 2025 countywide revaluation.
The town’s estimated taxable value is $271.5 million. One cent on the tax rate is estimated to generate about $26,069 in revenue at the town’s collection assumption.
The budget includes no increase to base water, sewer or electric rates. The only recurring household fee increase is a $1 monthly increase to the garbage collection fee, which town officials attribute to rising fuel, landfill and contractor costs.
Operating funds
The General Fund is recommended at $2,982,999. The Water and Sewer Fund is recommended at $2,388,748, the Electric Fund at $4,637,758, the Powell Bill and Street Fund at $285,577 and the Fire District Fund at $384,400.
The budget includes a 3.5% cost-of-living adjustment for all town positions and no new full-time positions. The town’s overall staffing level would remain at 17.75 full-time-equivalent positions.
General Fund revenue growth is expected to come from a broader customer and activity base, updated community center fees, standardized zoning fees, code enforcement and nuisance-abatement penalties, and recovery of delinquent abatement balances rather than a higher property tax rate.
Capital projects
Major General Fund items include a $125,000 roof replacement for the public library, $70,000 in townwide ADA upgrades split among the General Fund, Water and Sewer Fund and Electric Fund, and $30,000 for an E.B. Frink recreation complex planning study.
A proposed $1.74 million street resurfacing program would be financed, subject to Local Government Commission approval, with future Powell Bill allocations dedicated to the debt payments. The project would include milling, asphalt resurfacing, base repair, striping, ADA curb ramps, engineering and contingency funding.
The recommended budget also includes $170,000 from accumulated Powell Bill reserves to purchase a street sweeper. The budget identifies that as the only appropriated fund balance in the annual operating budget.
Other capital items include an $85,000 grapple truck replacement financed through installment purchase, a $100,000 sewer-line camera inspection system, and wastewater treatment plant optimization work funded through ARPA reimbursement administered by the N.C. Department of Environmental Quality.
Downtown and community improvements
Downtown and community projects include a $106,800 first-year downtown revitalization project, a $200,000 first-year community park improvement project and a $210,539 farmers market project at School and Railroad streets.
The farmers market project would use the town’s remaining ARPA/State and Local Fiscal Recovery Funds balance, with additional grant funding, donations or sponsorships proposed.
The budget also includes a $978,500 Community Development Block Grant-Neighborhood Revitalization project, with $950,000 in grant funding and a $28,500 town match. The project is intended for housing rehabilitation and neighborhood improvements near the former Frink school.
Code enforcement and debt
The budget provides for possible contracted code enforcement services at about $30,000. The document describes contracted services as a less expensive alternative to adding a full-time code enforcement position.
Total debt service for the year is listed at $1,173,130, all within enterprise funds. The General Fund carries no debt, according to the budget document.
The Water and Sewer Fund carries $554,636 in USDA and state debt service, while the Electric Fund carries $618,494 in debt service. The Electric Fund budget includes no base rate increase, even though the document says wholesale power costs are increasing. The fund also includes a $200,000 contribution and tax-recovery transfer to the General Fund.
Public meetings
The Town Council has scheduled a budget workshop for 6 p.m. Monday, June 15, at Town Hall.
A public hearing on the budget is scheduled for 6 p.m. Monday, June 29, at Town Hall and will serve as the final opportunity for public comment before adoption.
