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Hickory Finance chief reports stronger-than-expected revenues, rising residential permits in Q2
Summary
City CFO Rodney Miller reported midyear financial results showing $47.6 million in general fund revenues through Dec. 31, 2024, increased building-permit activity—particularly residential—and higher investment yields; council discussed property tax timing and bond debt payments.
City Chief Financial Officer Rodney Miller told the Hickory City Council on Tuesday that the city’s general fund recorded about $47.6 million in revenues and $48.1 million in expenditures through Dec. 31, 2024, in the second-quarter financial report for fiscal year 2024–25.
Miller said the city’s annual general fund budget is roughly $86 million and noted two reasons the year-to-date report shows expenditures exceeding revenues: property tax receipts are received largely in January (about $8 million expected beyond the report period), and the city made principal payments on three general-obligation bond sales on Oct. 1. “So we had a significant debt expenditure, which is reflected in that 48.1,” Miller said.
Miller reported the city had collected about $30 million in property tax receipts through December toward a $39.1 million budgeted total and had recorded $7.3 million in sales tax revenue (on a lag) toward a roughly $17 million budget; he said sales tax is trending to exceed conservative budget estimates. In the Water and Sewer Fund, the city received about $20.45 million through Dec. 31 on a $42.1 million budget, helped in part by higher system-development/capacity fees adopted July 1.
The finance chief highlighted a surge in residential permitting: the city’s residential permit activity and residential permit valuation roughly doubled compared with the first six months of the prior fiscal year, while commercial permit value was lower than last year. He listed several active projects across the city and noted three sites with grading permits but not yet building permits, including the Microsoft data center site, a Red Barn property near Morris Ferry, and a Blueberry Farm residential project near Fire Station 7.
Miller also gave an investment update: the city’s weighted average yield on investments was 3.64 percent and the city earned about $2 million in interest income year-to-date. He warned that higher mortgage rates (about 7 percent) could affect home sales for newly permitted residential projects and cited continued supply-chain delays for specialized vehicles like fire apparatus.
During Q&A a council member asked whether property tax valuation appeals from the county revaluation remained outstanding; Miller said most appeals had been settled and he would confirm.
