Town of Nashville adopts $16.6 million FY 2025-26 budget; approves personnel and policy adjustments

The Town of Nashville Council on a June vote adopted the fiscal year 2025-26 budget totaling $16,618,082 and approved related fee and personnel policy changes.

The budget presentation noted that the FY 2025-26 budget is smaller than the current year’s budget largely because fewer capital projects are planned. The budget keeps service levels across nine departments and includes a proposed combined sanitation and recycling fee increase of $4.50 per user per month, raising the charge from $27.50 to $32.00. The additional fee revenue is intended to help finance a $400,000 garbage truck on a four-year replacement schedule; the town anticipates setting aside about $100,000 per year toward that purchase.

General fund revenues were projected at $9,016,006 and expenses at $9,258,481, leaving an estimated $240,000 gap. Staff characterized roughly $181,000 of that gap as one-time purchases, and said the council intends to use fund balance/reserves to cover the difference while maintaining a fund balance near $4,691,000 (about half a year of general fund expenses), a level the council has aimed to preserve in prior years.

The budget also includes increased planning and zoning application fees for subdivision review, rezoning, special-use permits and variances, and some police report fees. The town noted it is not raising water and sewer rates at this time despite notice from Rocky Mount that Rocky Mount staff is recommending increases for the system that supplies Nashville; the town said it will use an upcoming rate study to review those costs and future capital needs.

Council also approved amendments to employee pay and personnel policies: the town moved the effective date for cost-of-living adjustments (COLA) and merit increases to the first full pay period of the new fiscal year to avoid audit complications, established a six-month tenure requirement for merit eligibility (matching COLA eligibility), and clarified that a satisfactory performance evaluation is required to receive merit pay. The council also approved an amended inclement weather policy that creates tiers for remote-work expectations and gives department heads and the town manager discretion on who is required to report during closures; staff said the change improves clarity and reduces potential double-counting of leave.

The council approved a package of budget amendments that recognize new and revised revenues: small grants and donations for events, FEMA-reimbursable emergency response wages (amount to be reimbursed not yet received), unspent state grant funds for library computer purchases ($6,245.05), an appropriation for federal drug-fund purchases (about $50,617), sale proceeds of Department of Defense equipment restricted to police use (about $103,250), and other technical adjustments. Separate motions approved each amendment item-by-item.

The council adopted the budget by ordinance and voted to approve the related policy and budget amendments during the same meeting.