Council sets 17¢ tax-rate benchmark; town manager to return with final FY26 budget June 1 meeting

The Indian Trail Town Council opened a public hearing on the proposed fiscal year 2026 budget and agreed to proceed on a 17¢ property tax benchmark, town officials said. The town manager and finance staff will return at the council’s June meeting with final budget documents for adoption.

Town Manager Michael McLaurin told the council he initially recommended an 18.5¢ rate but that council discussion produced consensus around 17¢. “I had recommended the 18.5¢ tax rate… After discussion and debate, y’all agreed on 17¢,” McLaurin said during his presentation. McLaurin described the recommended budget priorities as public safety, transportation, economic development, capital infrastructure and human capital.

Why it matters: The tax rate and budget determine staffing, capital projects and how the town balances operational needs against maintaining fund balance and bond rating. McLaurin said staff cut operational spending about 4.5% in the recommended package and adjusted capital priorities to match the chosen levy.

Public input and questions: During public comment residents raised questions about the math used to estimate property tax revenue and the town’s conservative 96% collection assumption. Public commenter Dan Schellenkamp asked why projected ad valorem revenue in the draft budget seemed lower than a calculation using county assessed values; he also pointed out the town’s audited collections have historically been higher than 96% collection. Staff responded that the town uses a conservative assumption because outside economic shifts and the Local Government Commission review can impose constraints; finance staff said final FY25 actuals were still being closed and that staff would present updated numbers when available.

Public-safety and personnel items: McLaurin said the budget includes funding for two deputies and one sergeant as part of the town’s contract for law enforcement support; he also noted staff proposed a 2% cost-of-living adjustment with a $1,000 minimum for employees. The budget includes capital projects and the town manager noted use of ARPA and other state/federal grants on specific projects.

Next steps: McLaurin said the budget requires final action at the first June meeting so information systems and vendor contracts can be reconfigured in time for the new fiscal year. Council opened the public hearing; final adoption is scheduled for the council’s June meeting.

Ending: Council members urged continued review of the capital plan during the summer and said staff should return with firm figures before the June adoption vote.