Pasquotank County proposes balanced FY2025-26 budget with no tax increase, approves $200,000 for student laptops

Pasquotank County Manager Sparty Hammett presented a proposed FY2025-26 general fund budget Monday that the board described as balanced and that does not raise the county property tax rate.

The proposed budget includes a 3% cost-of-living adjustment for all county employees effective July 1, 2025; full funding of compensation-study increases for most general fund employees; and capital and operating increases for local priorities, including a $3,784,850 capital increase requested for ECPPS and a $1,079,061 operational increase for the Albemarle District Jail (ADJ). County staff said those and other increases are offset by higher projected sales-tax and property-tax revenues and planned use of contingency and fund balance.

Why it matters: County staff said Pasquotank’s FY2025-26 proposal maintains the current property tax rate — continuing the county’s streak of budgets with no tax increase — while increasing pay and funding capital requests for schools and county services. Commissioners voted Monday to advance the budget process to allow public review and a hearing before final adoption.

Key details: Staff presented comparative data from the 2024 NCACC County Map Book showing Pasquotank among the lowest in the comparison group for property tax rate, tax levy per capita and debt per capita. The budget package staff described as balanced contains a 3% COLA, approximately $120,000 in additional annual retirement expense, completion of the compensation-study adjustments that were 50% funded in FY24-25, and requests for several additional positions, including two deputies for the sheriff’s office, a building inspector and a maintenance technician.

Staff identified major additional FY2025-26 expenses as: a $3,784,850 capital increase for ECPPS; a $1,079,061 operating increase for ADJ; and a $408,818 operational increase for Parks and Recreation. Major revenue drivers cited were higher sales-tax receipts (staff projected $2,180,900, noting current trends above that level) and increased ad valorem and motor-vehicle tax revenue tied to valuation increases.

Fund balance and contingency: County staff said the unallocated fund balance was 45% as of June 30, 2024, above the Local Government Commission median of 40%, and described a plan to appropriate $2.5 million of fund balance in the budget (staff said it is likely roughly $1.5 million of that would be used). Contingency was reduced in the proposal from $400,000 to $212,284.

Special appropriations and nonprofit requests: Staff reviewed previously funded special appropriations and a set of additional nonprofit requests. After discussion, the board concurred to appropriate additional funds from contingency: $3,000 each for Albemarle Hopeline, Food Bank of the Albemarle and Kid’s First, and $500 for United Way (totaling $9,500). RC&D’s request remained at the FY24-25 level. The transcript records that those appropriations were funded by board concurrence during the work session.

NEAAAT request and county action: NEAAAT requested $400,000 in capital funding for classroom furniture, technology and instructional apparatus. The county manager’s recommended budget did not include the full request, but the board concurred during the session to appropriate $200,000 from contingency specifically for laptop devices for Pasquotank County students.

Formal action and schedule: Commissioner Sean Lavin moved, and Vice-Chairman Clifford Shaw seconded, to move the FY2025-26 budget as amended to the June 2, 2025 board meeting; the motion carried unanimously. County Manager Hammett said he will read the budget and call for a public hearing at the June 2 meeting and that a public hearing will be held June 16, 2025.

Other adjustments: The proposed budget document includes several reductions to requests: an EMS operational cut of $250,000; a DSS operational cut of $100,000; a $100,000 operational cut to COA; a $97,000 capital cut to the Sheriff’s Office (including $57,000 for a school resource officer vehicle and $40,000 for a patrol vehicle allocation). The budget also continues per-call stipends for volunteer fire departments at $15 per call, funds two planned fire-truck deliveries, and maintains banquet allocations for volunteers.

Next steps: The board advanced the proposed budget to the June 2 meeting to allow the formal public hearing process to proceed. The work session record shows that the board adjourned at 3:40 p.m.