Town Council adopts fiscal year 2026-27 spending plan while approving new borrowing, redevelopment land acquisitions and infrastructure projects that will shape future spending.
RUTHERFORDTON, N.C. — The Rutherfordton Town Council spent much of its June 3 meeting deciding how millions of taxpayer dollars will be spent over the next year, approving a $6.85 million general fund budget, authorizing new debt, purchasing land for future affordable housing and advancing several infrastructure projects.
The meeting served as the council’s annual blueprint for town spending, setting property tax rates, approving employee salaries, adopting a five-year capital improvement plan and establishing the fee schedule residents will pay beginning July 1.
Where the money comes from
According to the adopted budget ordinance, Rutherfordton expects to collect approximately $6.85 million for general government operations.
The town’s largest revenue source remains property taxes, projected to generate more than $4.19 million, followed by $1.2 million in local sales taxes. Additional revenue comes from utility franchise fees, grants, service charges and the use of $257,000 in fund balance.
The adopted budget appropriates:
$1.81 million for police services
$1.75 million for fire protection
$1.44 million for public works
$792,656 for administration
$379,013 for parks and recreation
$359,509 for community development
$308,556 for the Norris Public Library.
Property taxes increase
One of the most significant actions was the adoption of a municipal property tax rate of 55 cents per $100 of assessed value, an increase from the previous year’s 51-cent rate. Property owners inside the municipal service district will continue paying an additional 13-cent district tax.
In his budget message, Town Manager Doug Barrick said the increase was needed to offset rising operating expenses, including an estimated $204,000 increase in employer costs for the North Carolina State Health Plan, higher fuel prices, utility costs and inflation.
Barrick said the proposed increase would cost the owner of a $100,000 home about $40 more per year, while the owner of a $300,000 home would pay approximately $120 more annually.
Personnel costs drive much of the increase
Budget documents show personnel costs rising nearly 14.5%, making employee compensation the largest increase in the new budget.
The budget includes:
a 3% cost-of-living adjustment,
market-based salary increases,
higher retirement and benefit costs,
increased State Health Plan expenses.
Operating expenses are projected to increase nearly 6%, while capital expenditures decline because many large projects are now being funded through grants rather than local tax dollars.
Council authorizes new borrowing
The council also approved approximately $300,000 in installment financing to replace a grapple truck destroyed by fire and purchase a hybrid K-9 patrol vehicle.
Town officials said insurance would not fully cover the replacement of the grapple truck, making financing necessary.
The truck is used by Public Works for storm debris removal and large brush collection. Officials said losing the truck temporarily disrupted brush collection services throughout town.
Rather than paying cash, the council chose to spread the purchase over five years, meaning taxpayers will repay both the principal and interest through future budgets.
Affordable housing investment
In a 3-1 vote, council approved purchasing roughly 0.65 acres for $40,000 as part of the town’s redevelopment strategy.
Town staff said the property would be land-banked until affordable housing funding becomes available.
Officials said philanthropic redevelopment funds—not local property taxes—would pay for the acquisition. Once purchased, however, the property becomes a town-owned asset until future development occurs.
The discussion highlighted the council’s broader effort to encourage workforce and affordable housing near downtown.
Parks planning continues
Council received an updated master plan for Crestview Park outlining possible improvements over the next 15 to 20 years.
Among the concepts discussed were expanded athletic facilities, additional pickleball courts, walking trails, playground improvements and phased development intended to guide future grant applications.
No construction funding was approved during the meeting, but the plan establishes priorities for future investment.
Culvert project delayed
Council voted to reject all bids for the Cleghorn and Second Street culvert replacement project after staff discovered errors in several of the lowest bids.
Town officials said rebidding the project would better protect public funds and ensure compliance with grant requirements before awarding a construction contract.
Library project expands
Council also approved change orders for improvements at the Norris Public Library after contractors uncovered additional electrical, plumbing and mechanical issues during flood mitigation work.
The revised project includes installation of a permanent backup generator designed to keep flood protection systems operating during power outages, like what happened during Hurricane Helene in Sept. 2024.
Other business
Council also:
Closed the required public hearing on the budget after receiving no public comments.
Postponed a public hearing on zoning ordinance amendments until July at the request of the Planning Board.
Approved a budget amendment recognizing more than $227,000 in interest earned on grant funds and accepted one-year extensions for state-funded construction projects, including the town’s new ladder truck and municipal facilities.
The town council includes Mayor Jimmy Dancy and council members Stanley Clements, Doris Crute, Alan Herrick, and Doug Sheets.
The next town council meeting is scheduled for July 1 at 5:30 p.m.
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