China Grove Town Council looks to reduce property tax rate

Published 8:13 pm Wednesday, May 8, 2019

By Samuel Motley

intern@salisburypost.com

CHINA GROVE — During a budget retreat Tuesday night, the China Grove Town Council discussed reducing the town’s property tax from its current rate of 58 cents per $100 in valuation to either 56 cents or 54 cents.

The decrease in the tax rate comes as China Grove saw an increase in revenue from property taxes over the past year and a good revaluation.

The town saw increases in other revenue streams, too. Sales tax revenue increased 4.5%. Based on a current population of 4,265, the town expects $115,500 in Powell Bill funds, which can be used for street repairs.

Town Manager Ken Deal proposed a revenue-neutral rate of 54 cents per $100 in valuation rate. But if the property tax rate decreases only two pennies from the current 58-cent rate to 56 cents, it would allow the town to have $68,000 in reserve, Deal said.

Asked about the 56-cent tax rate, Mayor Lee Withers said the town needs to plan for future expenses. This is a very responsible budget, Withers said.

Town expenses could rise in association with Interstate 85 construction work, particularly at Exit 68 in China Grove, Deal said. The town expects to see growth along the Exit 68 corridor, Withers added, and a rate of 56 cents could be used to prepare for that.

The town can also use that revenue for projects at China Grove Community Center, Deal said.

Expenditures spelled out in the budget include:

• 2% raises for Merit Pool employees and 2.8% for cost of living increases.

• A phone system valued at $10,000 and computer upgrades valued at $1,200.

• Salary reclassification and a new salary system.

• $25,000 for fire department equipment upgrades and purchases.

• Miscellaneous updates to the community building to total $29,000

• Paving projects totaling $90,500. This will leave a zero balance in the highway reserve fund.

Items requested by departments that will not be included in this year’s budget:

• The Police Department requested two cruisers at a cost of $83,000.

• The Fire Department requested $50,000 for new equipment, and only $25,000 was included in the budget.

• Parks and Recreation requested an additional $56,000 for Community Building Phase III and $30,000 for the Phase I park plan.

Currently, there is a total of $1.8 million in the town’s unreserved fund balance, Withers said.

The town will need to pass the budget by the start of the fiscal year, July 1. The next step will be a public hearing on budget changes set for June 4.

Contact newsroom intern Samuel Motley 704-797-4264.