Kernersville adopts $56.0 million operating budget, lowers tax rate to 50.9¢

The Kernersville Board of Aldermen adopted a $56,000,879 operating budget for fiscal year 2025–26 and set the property tax rate at 50.9 cents per $100 of assessed value in a unanimous vote Tuesday.

Town Manager Curtis Swisher presented the budget and summarized revenue and expenditure assumptions. Swisher said the proposed operating budget balances expected revenues and expenses and contains a recommended 2% merit increase for employees, market pay adjustments after a police pay study, a $5.055 million installment-purchase program for vehicle and equipment replacement and capital projects, and funding for six new firefighter positions phased to begin Jan. 1 when a new rescue truck arrives.

Swisher outlined major revenue assumptions: a projected property-tax revenue of $30,769,606 (approximately 54% of operating revenues) and sales-and-use tax forecast of about $9.9 million. He said sales tax growth has moderated from prior years and that North Point Industrial Park and other commercial activity contributed to overall tax base growth. Swisher explained the town’s fund-balance policy and said the recommended budget anticipates a modest effort to rebuild fund balance.

Swisher framed the recommended 50.9¢ rate as a 7.5-cent reduction from the prior rate and said the revaluation of property values meant many taxpayers would still see higher bills despite the rate cut. He said staff considered options but that lowering the rate sufficiently to offset the full revaluation would require significant service cuts.

After a brief recess following the presentation, the board reopened the public hearing. No members of the public spoke in favor or opposition during the budget hearing. Alderman Apple moved to adopt the operating budget as presented; Alderman Gorham seconded. The motion passed unanimously.

The adopted budget includes: a 2% merit pool, continuation of targeted pay-study adjustments for police, the addition of six firefighter positions (two per shift, phased in after truck delivery), replacement vehicles and equipment (including patrol vehicles and a trash side-loader), and building and field improvements in the parks and recreation program. Swisher said most planned equipment and vehicle purchases are replacements based on maintenance and downtime analyses.

Swisher also presented an ordinance to amend the current fiscal-year budget (budget amendment 8) that the board approved as part of consent business; he said the amendment reduces the fund-balance appropriation slightly after moving several line items and accounting for a GASB-required IT subscription treatment.

The board instructed staff to continue monitoring revenue trends, particularly sales-tax and building-inspection revenues, and to return with updates if circumstances change.