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Murphy – Cherokee County officials are starting the annual budget process with a draft plan that keeps the property tax millage rate level and has no increase in fees – but no pay raises for county employees, either.
County Manager Randy Wiggins and chief financial officer Candy Anderson submitted a draft budget for the 2025-26 fiscal year. County commissioners are working with department leaders to iron out details, with a final budget to be in place by July 1.
“The recommended budget sets forth a plan of operation for all county departments, programs, and capital projects for the coming fiscal year,” Wiggins said in a memo. “This recommended budget is balanced in accordance with the Local Government Budget & Fiscal Control Act with total revenues and expenditures for all funds totaling $63,391,343.”
Notable highlights include:
- No increase to the property tax millage rate of 61 cents.
- No increase in fees.
- A $260,000, 108% increase in budget to transport involuntary commitment cases.
- A $153,176, 69% increase in budget for jail medical expenses.
- $270,621 for digital file scanning for the Department of Social Services, with a 60% state reimbursement.
- A $585,340 increase for medical insurance premiums for county employees.
- $400,000 set aside for any contingencies.
- A $149,472 increase in contributions to the Local Government Employees’ Retirement System.
- $125,000 reduction in septic permitting revenues.
- Several major capital equipment replacements.
- County employees would not receive cost of living raises under the proposed budget, but the county is covering increased costs for benefits.
Breakdowns
In the county’s $63.4 million budget, three areas comprise 69.1% of expenditures: Public safety (30%), human services (25.9%) and education (13.2%).
For revenue, property tax contributes 43.6% of revenue, with sales tax coming in second at 19.8%.
The proposed budget includes dipping into the county’s designated fund balance, a total of $2.9 million, in order to avoid tax increases or service cuts.
“Our tax collection staff continues to work diligently toward improvements in our collection methods,” Wiggins said. “As the property tax remains the only substantial revenue source controlled locally, it is imperative to maintain a high collection rate to provide an equitable distribution of taxes. The FY24 actual property tax collection rate of 98.19% and auto tax collection rate of 99.88% was used in our FY26 projection.
“Sales tax revenues account for our second largest, unrestricted, revenue source. For FY26 we are expecting sales tax growth to remain flat,” he added. “The trend across the State and in Cherokee County reflects sales tax growth is slowing and flattening. The North Carolina League of Municipalities is projecting a FY26 growth of only 2.8% in sales tax revenues. We continue to be concerned with when, and to what degree, Cherokee County may begin to see a downturn in sales tax proceeds. We are therefore conservatively budgeting our sales tax proceeds to remain flat and thereby generating estimated sales tax proceeds of $11,873,472 or 19.8% of the total General Fund Budget.”
Capital projects
Major capital Items in the budget include:
- $386,667 for six new sheriff vehicles (five patrol, one Investigation) and necessary outfitting.
- $590,000 for one ambulance remount and one fully new unit to maintain the county’s replacement schedule.
- $199,613 for four Stryker LP35 Cardiac Monitors.
- $144,500 for Phase 1 of the Hot House Road repairs and maintenance.
- $192,413 to replace old Caterpillar 315 with a new Volvo 210 FL5 Track Hoe.
- $160,000 to replace a dump truck with a used 2015 or newer model.
“The fiscal year 2025-26 recommended budget sets forth a plan of spending that supports effective service delivery, maintains a strong financial position and reflects sound management of the county’s resources,” Wiggins said. “We are pleased to present to you a recommended budget that will responsibly address our operational and capital needs in the coming fiscal year while protecting the fiscal health of Cherokee County for the future.”
The board of commissioners is holding several budget work sessions with department leaders over the next few weeks.