The Ayden Board of Commissioners on Monday is expected to consider a 2024-25 budget that maintains the town’s ad valorem tax rate while property values have increased 30 percent or more. The budget before commissioners also increases electric and other utility rates for municipal customers.
The annual general fund spending plan totals nearly $6.7 million, Finance Director Marsha Hall said at the May 13 board meeting, an increase of more than $1 million over the 2023-24 budget of $5.6 million. Inflation and a nearly full staff account for much of the increase, Hall said.
Described as a good problem to have, 97 percent of full-time positions in the town are occupied. Vacancies in previous years have afforded the town flexibility with expenditures, Hall said.
Property values that help support the budget will be taxed at 54 cents per $100 value under the current proposal, which was open to a public hearing on May 14. The hearing was continued from the board’s regular May 13 meeting.
The revenue neutral rate, an assessment that would more or less maintain what property owners have to pay now, is 35 cents per $100 valuation. Pitt County revalued property this year to ensure tax value was closer to market value for property. Real property values increased on average by 36 percent.
The county is dropping its rate from 68.41 cents per $100 valuation to 56.63 cents per $100, the largest reduction in the county government’s history, but that rate is still 4.56 cents above the county revenue neutral rate of 52.07 cents per $100 valuation. Ayden residents would have to pay the county and municipal increase.
In addition to property taxes, residents could pay monthly water and sewer base fee increases of about $1 and rate increases of about 50 cents, according to the budget documents. Electricity rates would increase more than $4 a month, according to a May 13 presentation by Rick Vander Mass of ElectriCities.
Vander Mass said the increase is a result of the town’s wholesale power contract with ElectriCities, the municipal power agency that buys electricity from Duke Energy.
“What happens is, you pay one price all year long. And then at the end of the year, the power that was purchased versus what was paid with Duke is trued up,” said Vander Mass.
Vander Mass said that in 2022 there was approximately a $54 million true-up. The math results in a power cost adjustment of $4.14 on a residential bill for 1,000 kilowatt hours each month, he said.
Hall said that the general fund pays for several departments including the governing board, administration, finance, human resources, information technology, central garage, public buildings, police, recreation, sanitation, streets, libraries, fire. Staff also considers the power bill part of the general fund.
“The fiscal year ’25 budget in front of you today considers no increase in your property tax rate at 54 cents,” she said, “and that will need to be addressed moving forward in future years. We have no new positions created in this budget, although we had seven positions requested from various departments. We kept our (capital improvement) funding projects for general fund very low, there’s $8,000 to repair some crumbling interior walls at the library, and $14,00 for some fire replacement outdated equipment.”
Hall said a critical need list for electricity totals $250,000 and staff is requesting fee increases across the general fund to help cover rising costs for sanitation, which about $16,000.
The burden placed on residents concerned elected officials.
Commissioner Sarah Connor of Ward 5 said she understands why Ayden can’t decrease its tax rate but it puts people in her neighborhood in a precarious situation who are on fixed incomes.
“With utilities going up and garbage collection fees going up, basically all the money they’re making is being paid back out in taxes, and I want the citizens to know I’m concerned and that we’re doing the right thing to offset the cost,” said Connor.
Mayor Ivory Mewborn said that if Ayden does not come down on tax rates since the county has brought its tax rates down, the town is going to be looked at or perceived as not taking care of its citizens.
“I would suggest to this board to take what I call an eagle eye approach to make sure we’re doing the right thing,” said Mewborn.
Hall said that she has looked at the budget, eaten and slept on the budget for weeks, but the town has been surviving off vacant positions for years.
“But if we cut the tax rate, you’re going to have to tell me what department to cut. I don’t know what else we can cut. I’m not being ugly, I’m being very honest with you,” said Hall.
The board is scheduled to meet at 6:30 p.m. Monday at Town Hall, 4144 West Ave.
2024-25 budget proposal
2023-24 budget
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