Dobson holds property tax rates, hikes water and sewer

The Dobson Board of Commissioners recently approved its next budget while hearing about goals to improve employee retention and provide adequate water service for the future while holding property tax rates steady.

For fiscal year 2024-2025, which begins July 1, the board approved a budget totaling $4,601,293 for all town operations, including proposed capital improvements and contributions from the general fund reserves and restricted funds.

Town Manager Jeff Sedlacek said this amounted to an 8% increase to the town’s current budget of $4,255,839 for the current fiscal year.

“It continues to be a priority of the board and staff to focus on lean operations by providing high quality services for low costs. I commend the board and staff in the engagement of long-term planning for the Town of Dobson throughout the budget process,” Sedlacek said.

The town held property tax rate at 43 cents per $100 and has maintained a high collection rate of more than 99%. Sedlacek said Dobson taxpayers “will continue to enjoy the lowest municipal tax rate in Surry County.”

He reported the town has maintained a healthy reserve fund balance equaling “nearly 100% of annual general fund expenditures; much higher than the 8% recommended... The maintenance of these reserves ensures the community of our ability to respond to emergency situations and create opportunities within the town.”

“The town continues to provide a variety of services for the lowest cost to citizens in both the general and water and sewer funds. Through these planning efforts and allocation of resources the board continues to build a strong foundation and investments towards the future, and I am confident the town is positioned for a bright future,” Sedlacek stated.

While the property tax rate will not increase, Sedlacek recommended a 20% increase to the base rate for both water and sewer, “With this proposed increase, an average water customer who uses 5,000 gallons/month would receive a bill for $36.25 instead of $33.75. This is an increase of $2.50/month.”

“It is our responsibility to identify the replacement of assets and improvements in the (water) system. This budget earmarks a significant amount of capital items... As the town continues to grow with an aging infrastructure, it is imperative rates are affordable for customers yet sustainable to needed replacements within the collection and distribution system,” he explained.

Similarly, an average sewer customer who is using the same 5,000 gallons/month would receive a bill of $46.25 instead of $43.75, again an increase of $2.50 a month.

The town approved a 4% cost of living adjustment for all full-time employees and Sedlacek also proposed a merit bonus which he offered may help with retention, morale, and performance of town staff.

“It affords every employee the opportunity to be awarded a one-time merit bonus of up to 5% of an employee’s annual salary. The award amount is directly correlated to the employee’s performance as measured using a point-based evaluation.”

He provided a breakdown for Dobson residents to get a sense of where their tax dollars are going.

For $1 in taxes collected the largest portion (54%) goes to public safety with the Dobson Police Department collecting 47 cents and Dobson Fire 7 cents. The town’s administration gets 11 cents from each tax dollar followed by recreation at cents, and tourism 7 cents. The remaining categories including street maintenance, garbage, debt service, special appropriations, and Powell Bill funding — a second category of road repair — compose the remaining 19 cents.

The budget includes an increase of 4.68% to the police department budget which landed at $1.128 million. That includes a 5% increase to starting pay “to closer align with starting pay with surrounding communities and municipalities of similar size.”

A larger increase percent wise, 46%, jumps off the ledger in the fire department budget. However, their budget is significantly smaller than their police cousins at only $139,536. Sedlacek said $30,000 was added for a fire department feasibility study and an increase to liability and workers compensation insurance accounted for much of the increase.

Over $98,000 of the town budget will go to street work and maintenance that includes resurfacing, sidewalk repair, power pole replacements, and striping for downtown parking to “increase line of sight challenges in navigating side streets and parking lots.” This represents an increase of 15.77% from the previous year.

Powell Bill funding is appropriated from the North Carolina General Assembly through the gas tax and can only be used for repairs and maintenance to municipal roads, where the street work and maintenance budget may also contain work to NCDOT owned roads, totaling $148,500.

Projects that fall under that category include repaving and repairing storm drain maintenance “that is deteriorating the road and edges” along Pickshin Avenue, Hill Street repaving and curbing, and sidewalk expansion along West Folger Street.

Next year the recreation department budget was approved at $217,620, an increase of 5.83% from the previous year.

Sedlacek said, “The highlight of this department is Dobson Square Park… The premiere asset is the splash pad which allows children and their families to enjoy a unique aspect that is not available anywhere else in Surry County.”