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Blowing Rock council adopts balanced 2025–26 budget with no property‑tax increase
Summary
Council adopted the 2025–26 budget as presented, balanced using $194,000 of fund balance rather than a property tax increase; staff proposed a 2.5% COLA for employees and a 7% water and sewer rate increase to cover capital and debt costs.
Blowing Rock — At its June 10 meeting the Blowing Rock Town Council adopted the 2025–26 budget as presented by Town Manager Shane Fox. The council recorded a unanimous roll-call vote in favor of the budget.
Fox said the budget includes no property-tax increase and uses roughly $194,000 of unassigned fund balance to balance the general fund rather than implementing a one‑cent tax change. He described the town’s revenue mix (approximately 45% property tax, 23% sales tax, and 15% TDA/occupancy tax), noted continued tourism-driven revenues, and explained that the value of one penny on the tax rate is roughly $178,000 given the town’s assessed base.
On expenditures, the budget proposes a 2.5% cost-of-living adjustment for employees, continuation of the town's capital and fleet-replacement schedule, no new full-time positions, and estimated increases in state retirement contributions (~6%) and health-insurance costs (~5%). For the water and sewer enterprise, staff proposed a 7% rate increase (roughly $4 monthly per customer) to cover rising operating costs and debt obligations tied to recent infrastructure work and anticipated USDA debt obligations.
Fox highlighted debt metrics: the town’s general fund debt and its AA+ credit rating from S&P, and a plan to consult the Local Government Commission about a loan for park and land purchases. He said the town’s unassigned fund balance is about $6.4 million (roughly five months of operating reserves) and that FEMA reimbursements are mostly complete with one remaining payment expected.
During the public hearing, Janie Sellers (Blowing Rock Civic Association vice chair) thanked council for a balanced budget and asked for earlier public input opportunities in future budget cycles; Jenny Miller offered public thanks for staff work on the budget. The council closed the public hearing, moved to accept the budget as presented, and approved it by voice/roll-call vote: Kat (Aye), David (Aye), Melissa (Aye), Doug (Aye), Pete (Aye).
Staff will bring any necessary budget amendments (for items such as unbudgeted equipment purchases) to council at the summer retreat or later in the fiscal year.
