Smithfield manager proposes 47¢ tax rate, recommends utility fee increases in FY 2025–26 budget

The Town of Smithfield held a public hearing on the proposed fiscal year 2025–26 budget during which Town Manager presented a proposal that lowers the property tax rate from 57¢ to 47¢ per $100 of assessed value while raising electric rates by 3.5% and sewer charges by 3.1%.

The budget matters because the town completed a revaluation that increased assessed property values on average by about 70% (subject to ongoing county appeals), creating significant "sticker shock" for taxpayers even though the manager’s proposal reduces the tax rate. Manager said the revenue-neutral rate after the revaluation is about 42¢, and the proposed 47¢ rate would still leave residents with higher bills where values rose most.

Manager’s presentation laid out key numbers and reasons. He told the council that Smithfield has kept the 57¢ rate for more than two decades and that this revaluation created a larger tax base; the town can lower the nominal rate because assessments rose. The manager also described line items in the three main funds: a $3.8 million capital program in the general fund, $1.75 million in electric capital expenditures, and $3.6 million in the water and sewer fund. He recommended using about $300,000 of utility…