County passes first tax rate hike since 2015

DANBURY — In a 3-2 vote Monday, the Stokes County Board of Commissioners passed a budget that included a 5 cent property tax rate increase.

The 2024-2025 budget ordinance also includes a 2 cent fire tax increase for the county, Walnut Cove and King service districts.

Those that live within the Rural Hall fire service district, the Walnut Cove town or King city limits will not be subject to the 2 cent fire tax increase, Interim County Manager Amber Brown stated during the June 24 meeting.

The Stokes County property tax rate was last increased in 2015, according to Tax Administrator Richard Brim.

Commissioners Brad Chandler, Rick Morris and Keith Wood voted in favor of the budget; Ronnie Mendenhall and Sonya Cox voted against.

The total county budget of $72,005,542 reflects a 1.6% increase from last year’s budget of $70,897,780.

The tax rate was set at 67 cents ($0.67) per $100 valuation of property listed for taxes as of Jan. 1, 2025. The 5 cent increase from 62 cents per $100 valuation would add an additional $50 per year on a property valued at $100,000.

According to the 2024-2025 budget message, the average residential value in Stokes County is $167,000. That means the average homeowner will pay an additional $83.50 per year in property taxes, or about $7 per month.

Commissioner Morris stated during the June 24 meeting that 3 cents of the 5 cent increase will go toward the courthouse renovation project required by the state.

The remaining 2 cent increase will be split with 1 cent going towards public safety/solid waste and 1 cent for operational costs, Brown confirmed.

The budget ordinance includes an $11 million appropriation for the courthouse project and $1.375 million for the animal shelter building.

While $2 million of that $12,375,000 total capital project cost will come from a State Capital and Infrastructure Fund grant for courthouse renovations, the remainder will be financed, according to the budget document.

The budget includes a total of $4,572,106 for debt service in the upcoming fiscal year, which includes $541,364 for principal and interest payment on capital leases.

Board Chair Chandler noted at the meeting that the Local Government Commission can deny the loan or require a tax increase if they don’t think the county has the revenue to pay for the courthouse project.

“We’re kind of in a corner, and I don’t like raising taxes,” he said. “There are things that we’ve been told that we have to do, and we’re mandated also by the state to provide certain services, and we’ve got certain parts of the county that are growing and we have to fund it.”

Commissioner Wood comments indicated that a business in a similar situation would experience massive layoffs.

“...The county is a business,” he said. “So tell me what you want to do without: EMS? Sheriff’s department? It’s black and white.”

Wood also said that like a business, the county has to be competitive.

“We’ve got to raise taxes,” he said. “I don’t like it — my dad’s rolling over in his grave — but sometimes you’ve got to use common sense.”

Commissioner Mendenhall said he was unable to support the budget.

Commissioner Cox said it was probably the hardest single vote since she’s been on the Board.

“I do understand the ‘why;’ I see how we got here after years of putting Band-Aids on bullet holes,” she said. “But it’s a really hard pill to swallow to raise taxes in an economic downturn time.”

The budget included $15,089,840 for the school system’s current expense, which is about the same as the $15,088,048 budgeted last year. The district had requested $16,290,921 from the county.

The approved school capital outlay budget of $2,675,000 does not include funding for a grant match if a needs-based grant for a new King Elementary School is awarded.

Brown said that while the match has not been officially appropriated, the school system has $1,214,645 in their capital outlay fund balance at the county that can be used toward the match if the Board approves the grant application.