Marshall 2024-25 budget includes 5% raises for employees, property tax rate decrease

MARSHALL - Following a similar trend laid out by the Madison County Board of Commissioners, the Marshall Town Board decreased its property tax rate to a revenue neutral rate to account for tax base accrued as a result of the county's home value revaluation process.

The 2024-25 property tax rate is 37 cents per $100 valuation, down from 49 cents per $100 valuation in 2023-24.

The revenue neutral rate, as defined by North Carolina General Statutes 159-11(e) is the rate that is estimated to produce revenue for the next fiscal year equal to the revenue for the current fiscal year if no reappraisal had occurred.

In the town's budget ordinance message, Town Administrator Forrest Gillliam said the reappraisal produced a tax base of nearly $172,000 for the town, and the tax levy for the 2023-24 fiscal year is $624,00, while the growth factor since the last general reappraisal is 2%.

The 2024-25 General Fund budget of $1.2 million is approximately 3.2% higher than the 2023-24 adopted budget of $1.17 million.

The 2024-25 budget adjusts for inflationary costs for items purchased by the town and includes a 5% cost-of-living adjustment for employees, and funds cost increases for retirement and health insurance benefits.

According to Gilliam, the property tax and the sales and use tax comprising roughly 80% of General Fund revenues.

The budget was presented to the Marshall Town Board at the end of May and the public hearing was held on June 17, but the town knew that the county was still going through its final review of initial property values for the 2024 countywide revaluation and that there would likely be updates to some values, particularly for commercial and mixed use properties, according to Gilliam.

"In order to have the best information possible the board chose to delay adoption of the final budget until June 26. The Town did receive more information about adjusted values from the County Tax Office, and as a result the Board was able to drop the revenue neutral property tax rate to $.355 rather than the $.37 proposed at the end of May. This is a reduction from the current rate of $.49, but should bring in the same amount of revenue once the new property valuations go into effect."

Gilliam said the town can readjust its rates once the county sends out notices to individual property owners and the appeals process for property owners is complete, but local governments have to set the tax rate based on the best possible estimate of values at the start of the July 1 fiscal year.

"The board really wanted to take the time to make sure the rate was no higher than needed to bring in the revenue necessary to pay for the town's operations, especially with the level of increase in property values that’s expected given all of the real estate inflation that has happened in recent years," Gilliam said.

General Fund expenses

The $1.2 million General Fund expenses are allocated to the following departments:

• Police: $424,000
• Administration: $275,155
• Streets: $163,000
• Governing body: $115,000
• Fire department: $100,000
• Planning and zoning: $39,000
• Contingency: $33,000
• Powell bill: $23,000
• The Depot: $18,000
• Recreation: $14,000

The police budget includes $30,000 for the purchase of dash and body cameras.

According to Gilliam's budget message, the contract with the Marshall Community Volunteer Fire Department is increased by approximately 4%, a $4,000 increase. The total $100,000 budgeted for the fire department is the equivalent of a 6 cents per $100 property tax revenue.

Water and Sewer Fund expenses

Budgeted Water and Sewer Fund expenses total roughly $838,000, and expenses are allocated to the following departments:

• Water/Sewer operation: $689,000
• Wastewater treatment plant: $120,000
• Contingency: $30,000

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According to Gilliam, the operating budget for the Water and Sewer Fund is reduced by $78,000 due to an anticipated revenue reduction of some lines to cover increased expense at the sewer plant.

The budget for the wastewater treatment plant is increased by $52,000 to cover additional operating costs for sludge removal and chemical treatment necessary to address long-term issues that come from the aging plant. The first phase of rehabilitation of the plant, funded through a portion of the state appropriation granted to the county in 2023, will allow these costs to be reduced once the improvements are made, Gilliam said in the budget message.

Johnny Casey has covered Madison County for The Citizen Times and The News-Record & Sentinel for nearly three years, including earning a first-place award in beat reporting in the 2023 North Carolina Press Association awards. He can be reached at 828-210-6071 or jcasey@citizentimes.com.