Henderson City Council backs recommended $0.55 tax rate, debates $75,000 McGregor Hall grant

Henderson City officials advanced their FY25 budget at a May 28 public hearing and work session, endorsing a recommended property tax rate of $0.55 while discussing a proposed one-year, $75,000 conditional grant for McGregor Hall and a possible property acquisition from the Embassy Cultural Center Foundation.

Mayor Melissa Elliott called the hearing to order at 6:04 p.m. and City Manager Edward T. Blackmon summarized that the proposed budget had been presented May 13 and that council adoption is anticipated at the June 10 regular meeting. Blackmon said worksheets prepared by Finance Director Joey Fuqua show revenue and homeowner examples under different rates: a $0.45 revenue-neutral rate yields an illustrative homeowner payment of $900, a $0.55 rate yields $1,100 and a $0.65 rate yields $1,300. The $0.55 rate was shown to produce roughly $1,334,519 in additional revenue versus $2,734,519 at $0.65. Blackmon recommended the $0.55 rate to support infrastructure projects, redevelopment and employee recruitment and retention after a pay-classification study.

After discussion, Mayor Elliott recorded that the council was unanimous in favor of the $0.55 recommendation. The council did not adopt the budget formally at the May 28 meeting; Blackmon stated adoption is anticipated at the June 10 regular meeting.

Public comments at the hearing focused heavily on McGregor Hall. More than a dozen residents and downtown business representatives spoke in support of continued funding, saying the theater brings customers downtown, offers youth arts opportunities and draws regional productions that boost the local economy. City Manager Blackmon reported feedback about properties proposed for acquisition from the Embassy Cultural Center Foundation and described the purchase price as competitive; he asked whether council wished to proceed with the acquisition.

Councilmember Garry D. Daeke recommended the city provide McGregor Hall with the requested $75,000 in the form of a one-year grant, and City Attorney D. Rix Edwards advised any funding be structured as a conditional annual grant subject to review and audit. Councilmember Geraldine Champion said that if the city provides grant funding it would be appropriate for the city to appoint voting members to the foundation board and to receive information about how funds are allocated. Councilmember Sam Seifert expressed support for honoring the $75,000 request. When Mayor Elliott asked for consensus on a $75,000 grant with conditions and two city-appointed board seats, Councilmembers Lamont Noel, Garry D. Daeke and Sam Seifert were recorded as in favor, while Geraldine Champion, Michael Venable and Tami Walker were recorded as not in favor. The council agreed it supported McGregor Hall in principle but had not resolved the grant’s precise terms or the amount of any county contribution.

On council compensation and training, Blackmon noted Henderson’s council pay ranked fourth among 41 peer cities in the North Carolina League of Municipalities 2023 survey for the city’s population range. Councilmember Tami Walker moved to allocate an additional $1,500 for council training; councilmembers concurred by consensus and the allocation was included in the budget materials.

Mayor Elliott closed the public hearing after a final commenter, identified as Ms. Williams, urged the council not to raise taxes. The council recessed for a closed session and later reconvened. The meeting adjourned at 8:14 p.m.

What happens next: Council staff said the FY25 budget is expected to be adopted at the June 10 regular council meeting; any final decisions about McGregor Hall funding and property acquisitions were left for subsequent action and for resolution of grant terms.