Person County manager recommends FY 2026 budget with lower tax rate, $5.1M spending increase

County Manager Kathy presented the manager's recommended fiscal year 2026 budget on May 19, proposing a general fund increase of $5.1 million (6.38%) and an all-funds budget of about $109 million.

Kathy said the recommendation would set the county property tax rate at 64¢ per $100 of assessed value, down from this year's 72.25¢. She said the revenue-neutral rate is 56.06¢ and that the 64¢ rate is above that figure because the county needs additional revenue to sustain services and one-time expenses.

The plan budgets a 3.3% cost-of-living adjustment, continues the merit program and includes a 3% increase in the county's health-insurance contribution. Kathy told commissioners she is recommending funding for seven new positions, $2 million of American Rescue Plan Act (ARPA) funds set aside for a new airport terminal, and $2.8 million for broadband expansion.

Why it matters: the recommended budget builds in pay increases and new debt service after two recent building purchases, funds school and community college increases the manager recommended, and reflects a 33% growth in the county's tax base following the recent reappraisal (the manager described a 52% increase in real property values).

Key numbers and drivers - General fund increase: $5,100,000 (6.38%). - All-funds budget: $109,000,000 (increase of $7,800,000 or 7.6%). - Proposed tax rate: 64¢ (current 72.25¢). Revenue-neutral: 56.06¢. Estimated property tax revenue at 64¢: $45,600,000. Each penny on the tax rate estimated to generate $759,236. - Tax base growth: from $5.32 billion to $7.25 billion (manager cited a $1.927 billion increase; described real property growth of about 52% in reappraised values). - Fund balance target: 25% desired; manager noted the county ended FY23 at 35.4% and FY25 at 21.7% and recommended conservative budgeting (collection rate budgeted at 97.5%). - New positions: 7 (five in social services, including supervisors and social workers; one animal control supervisor; one production maintenance technician for Person Industries). Manager said many social-services positions are offset by state reimbursement. - Fleet: 18 replacement fleet vehicles plus three passenger vans (PATS), estimated cost $845,000. - Schools: recommended full funding of Person County Schools' current expense request of $14.3 million (8.64% increase) and Piedmont Community College current-expense funding of $1.8 million (6.93% requested; fully recommended). - Capital and reserves: $2,000,000 ARPA for a new airport terminal, $2,800,000 for broadband, $1,700,000 in the economic catalyst fund for industrial incentives; manager noted debt service increases tied to recent building acquisitions including the Human Services building and CHAT building and Person Industries merger.

Manager Kathy said the budget aims to preserve workforce gains from prior pay and benefits changes, to absorb rising operating costs (jail medical, utilities, cybersecurity, legal services connected to property transactions), and to begin setting aside funding for the next reappraisal cycle.

Next steps and calendar: the board scheduled a public hearing on the recommended budget for June 2 at 6 p.m. in the county office building auditorium and tentatively set budget work sessions for June 6 at 9 a.m. and, if needed, June 9 at 9 a.m. Kathy said printed and electronic copies of the budget will be available and invited public comments to the county manager's office.

Questions and discussion: commissioners asked about reappraisal frequency and the costs and staffing implications of conducting revaluations more often; Kathy said more frequent reappraisals may reduce market "sticker shock" but would likely increase recurring costs and potentially require additional staff or contracting. Commissioners discussed organizational-chart language and stakeholder engagement for planning documents; the manager said she would return with edits and that staff continue to work on ordinance and UDO-related text amendments.

Ending: the board accepted the recommended schedule for public hearing and work sessions and directed staff to post the budget materials online for public review.