Princeton staff preview 2025–26 budget: tax-rate options, proposed salary increases, water rate and vehicle requests

Town Administrator Paul (presenting the budget packet May 5) told the Princeton Board of Commissioners the draft FY 2025–26 general fund budget is balanced under one scenario and outlined several policy choices for the board.

Key proposals and figures Paul presented include:

- Tax-rate options: Administrator noted the town’s net assessed valuation is in the order of hundreds of millions and that, based on the most recent county assessment scroll, “1 cent equals $16,989” for Princeton. He said the board could reduce the rate to about 38.5 cents and still yield the same ad valorem revenue as the current year; his balanced-budget scenario used a 50-cent rate. He recommended not setting the tax rate below 50 cents for planning and reserve purposes.

- Water and sewer: Paul recommended a 7% water-rate increase to match Johnston County’s proposed bulk rate rise; his draft uses a 7% increase to offset higher county charges and maintain the water and sewer fund balance.

- Personnel and pay: The administrator proposed a 5% cost-of-living increase for police and public works staff to improve retention. He also proposed a 15% salary adjustment for select administrative roles (town clerk, assistant clerk, town administrator) to narrow gaps with comparable positions in neighboring jurisdictions. The board asked staff to gather pay data from nearby towns within a 30–45 mile radius and present comparative spreadsheets at the next budget meeting.

- Recruitment and training: Commissioners and staff discussed whether the town should pay BLET/academy training costs for recruits and whether those payments should carry repayment requirements. The board did not adopt a new policy at the meeting and asked staff to research common practices and contract terms used by neighboring departments.

- Vehicles and capital: Staff recommended not budgeting for a police vehicle this year but suggested planning to purchase one next fiscal year; commissioners discussed vehicle types (Durango, Tahoe, Mustang) and availability. Administrator recommended paying off the town’s garbage truck loan this fiscal year, which he said would save approximately $12,000–$13,000 in interest over four years.

- Garbage and solid waste: Staff recommended considering a $0.50 monthly garbage fee increase to align with neighboring towns; the town currently charges $28.50 per account. The town has roughly 667 garbage customers and projected 27 new homes for the coming year.

- Library and board allocations: The draft budget as presented included $15,000 for the Princeton Public Library and $500 for the local women’s club; during public comment the library director asked the board to “maintain our current level of support” and explained operating cost increases tied to a new building.

The board asked staff to return on May 19 with a revised draft that incorporates comparative salary data and two or three tax-rate scenarios (administration suggested rates between 38.5¢ and 50¢ for modeling). The board did not adopt a final budget in this meeting; the administrator said the board will need to advertise and hold a public hearing before final adoption if rates change.

Quotes from the presentation

- "1 cent equals $16,989," Paul said when describing the most recent assessed-value scroll and the revenue equivalent of one penny on the tax rate. - On personnel: "My recommendation would be that we do not set the tax rate below 57." (presenter remark recorded during the budget discussion; the board later discussed tradeoffs and targets nearer 50¢.)

Next steps

Staff will compile salary comparisons for neighboring towns, present budget scenarios at the May 19 meeting and prepare any required public notices if the board sets a proposed tax rate.