Hertford Council OKs budget with 4-cent tax rate hike

Hertford Town Council agreed Monday night to approve the town’s $7.6 million spending plan for 2024-25 that raises the town’s tax rate by 4 cents and both electric and sewer rates.

In the new fiscal year that begins July 1, the town’s tax rate will rise from a revenue-neutral rate of 48 cents per $100 of property valuation to 52 cents. The base monthly sewer charge rises from $43.70 to $47.02, and the base monthly electric service charge rises from $15 to $18. The budget also awards town employees a 3% cost-of-living increase costing the town a little more than $39,000.

Town Manager Janice Cole previously explained that the increases were due to several factors.

“It (the 4-cent increase) is necessary because the costs of everything have and continue to go up,” she said. “Our utility rate increases are also necessary because of price increases of chemicals and electric poles and other operating costs.

“In addition we must generate sufficient income to maintain and replace our pipes and (water and sewer) systems so that in 10 years our streets won’t be caving in or (we) have water standing in them because of the condition of the pipes underneath,” Cole said.

The approved budget takes into account this year’s property revaluation in Perquimans County that increased Hertford’s tax base by $43.2 million. Last year, the town’s tax base was $119,602,769. This year, following revaluation, the tax base is $162,809,911.

The larger expenditures in the general fund include $489,592 for town administration, $459,836 for street maintenance, $375,000 for law enforcement, $218,017 for fire protection, $184,140 for sanitation, $174,000 for planning and zoning, and $130,707 for an expenditure labeled “governing body.”

The town’s water-sewer rate study performed by the N.C. Rural Water Association called for rate increases totaling 18.75% over five years. This year’s sewer increase was 9.4% and the study originally called for an increase of 3.5% in 2024-25. However, when the NCRWA updated the study this year, it determined the town would need to increase rates by 7.6% in 2024-25, Cole said.

Residents will see a $3.32 increase on their monthly base charge for sewer service and a $1.01 increase — from $13.23 to $14.24 — on their monthly usage charge if they use 12,000 gallons or less. Those using more than 12,000 gallons would see their monthly charge rise from $15.22 to $16.37, or $1.15 more. The increases will bump up the town’s water and sewer revenue from $2,202,847 this year to $2,276,842 next fiscal year.