Mount Holly proposes $42.37 million budget; public hearing set for June 9

City Manager Blanton presented the Mount Holly City Council with a proposed fiscal year 2025–26 budget of $42,369,691 during a May 19 work session and said the council will hold a public hearing on the proposal at 7 p.m. Monday, June 9, in council chambers.

The budget message, delivered by Blanton and assisted by Finance Director Michelle Wood, proposes a balanced plan that directs fund balance to capital projects, adopts targeted employee pay adjustments, and continues investments in water and sewer infrastructure while keeping the property tax rate unchanged at 40.5 cents per $100 of assessed value.

Blanton said the recommended budget is balanced at $42,369,691 and that the general fund totals $25,216,517. He listed major priorities as (1) finalizing large-scale capital projects already underway, (2) recalibrating employee benefits and compensation to retain staff, and (3) funding new quality-of-life improvements such as public-safety camera upgrades and public art.

The proposed budget uses a limited portion of fund balance for capital spending: $776,745 from the general fund and $727,297 from the water and sewer fund as allocations to capital rather than ongoing operations. Blanton said the water and sewer fund allocation represents an "86.6% decrease from the prior fiscal year" in fund-balance use because several one-time, large projects occurred in 2024–25. The budget documents provided to council show a water and sewer fund balance of $15,903,301.

Capital projects called out in the presentation include $673,500 toward new museum space in the municipal complex; continuation of a roadway project with phase 1 under contract and phase 2 planned; a $3,196,531.17 Dutchman's Creek greenway project; ongoing work on a North water tower and other water system investments; and continued work related to a multi-million-dollar decommissioning of the city's wastewater treatment plant.

Blanton said the wastewater treatment plant decommissioning was estimated in engineering reports at $15,000,000 and that the majority of those costs "will be provided for via a direct allocation from the NCDEQ" (North Carolina Department of Environmental Quality). He said the city is coordinating with the City of Charlotte on regionalization work and expects a state revolving fund loan and grant reimbursements to be involved as the project advances.

On utilities and rates, the recommended budget includes a 12 percent increase to water rates and a 6 percent increase to sewer rates based on a rate study by RAFTELUS. Blanton said the enterprise fund previously funded roughly $6 million in water-and-sewer capital work in 2024–25 and that the 2025–26 plan scales that capital activity down while continuing needed system work such as lift-station upgrades and sewer lining.

Employee compensation changes in the recommendation are built on two consultant reports (Baker Tilly and Ability Development Group). The budget would: revise the pay plan to align with market midpoints; set a recommended starting minimum wage of $18.33 per hour; transition retirees to a health-reimbursement arrangement (described as a cost-saving measure); and address pay compression through grade adjustments. The budget does not fund a cost-of-living adjustment, does not fund merit increases, and does not add new positions for 2025–26. Blanton said the city's retirement plan contributions for the coming year are 14.35 percent for general employees and 16.1 percent for law-enforcement officers under the state system cited in the presentation.

Other line items noted during the presentation: $800,000 in Powell Bill funds for paving and street projects; a Tourism Development Authority fund balance at $339,200 with a $139,200 planned allocation to new gateway/placemaking projects; a $110,673 wireless/wireline 9-1-1 fund balance and a proposed $58,070 upgrade to the 9-1-1 system; and $442,000 for stormwater mapping and drainage repairs. Blanton also listed the general fund debt-service obligation of $1,696,357 and enterprise debt service of $2,550,868 for the coming year.

Council members asked technical questions during the session. Mayor Pro Tem Shoemaker asked for clarification on the water-and-sewer fund balance decrease; Blanton answered that the percentage change referred to fund-balance allocation for capital versus the prior year’s large capital outlays. Councilman Huff asked how the $15 million decommissioning project would be funded; Blanton said the city had lobbied the General Assembly and obtained state funding via NCDEQ and expects to seek reimbursement through that program.

Blanton told the council the recommended budget is prepared in accordance with North Carolina General Statute 159-11 and that the proposed tax rate would remain unchanged; he also said the proposed budget will be implemented if adopted on July 1, 2025. The council made no final vote on the budget at the work session; Blanton said staff will return for further presentation and action after the June 9 public hearing.

The city printed and posted the recommended budget for public review at the municipal complex and online, and the council will consider adoption after receiving public comment at the June 9 hearing.