Henderson City Council adopts FY 2024–25 budget, approves tax-rate increase and disputed $1,500 council allocation
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Summary
The Henderson City Council approved the FY 2024–25 budget and annual fee schedule June 10, voting to raise the property tax rate to $0.65 and to allocate $1,500 to council in a 5–3 vote after debate over whether the funds were meant for training or a bonus.
Henderson City Council on June 10 adopted the city’s FY 2024–25 budget and annual fee schedule, approving Ordinance 24-11 after several hours of discussion about council pay and revenue assumptions.
City Manager Edward T. Blackmon told the council the budget followed multiple work sessions and a statutorily required budget hearing; Finance Director Joey Fuqua said a sharp increase in the General Fund’s non-departmental line — from $928,000 to $3.9 million — reflects allocations for tax-increment financing (TIF) district properties, downtown redevelopment (including Embassy Block property purchases) and a Recreation and Parks splash park, and that an anticipated line-of-credit has not yet been secured but must be reflected in the budget figures.
Council debated two contested adjustments before final adoption. First, members disputed the intended purpose of a $1,500 council allocation: Councilmember Garry D. Daeke said his recollection was that the amount was for training, while Mayor Melissa Elliott said she understood it had been discussed as a bonus. City Clerk Tracey Kimbrell said she recalled the motion approved earlier had been for training. Despite that record, Councilmember Michael Venable moved to allocate the $1,500 as a bonus; the motion was seconded by Councilmember Geraldine Champion and approved 5–3 (YES: Sara M. Coffey, Michael Venable, Ola Thorpe-Cooper, Tami Walker and Geraldine Champion; NO: Lamont Noel, Sam Seifert and Garry D. Daeke). The minutes record the 5–3 outcome as stated above.
Separately, Councilmember Tami Walker moved to raise the tax rate from $0.55 to $0.65. The motion, seconded by Councilmember Sara M. Coffey, was approved by a vote recorded in the minutes as 6–2. The minutes list five affirmative names (Lamont Noel, Michael Venable, Ola Thorpe-Cooper, Geraldine Champion and Sara M. Coffey) and two negative votes (Sam Seifert and Garry D. Daeke); the minutes record the motion’s 6–2 tally but omit one affirmative name in the roll call listing.
After those adjustments, Councilmember Ola Thorpe-Cooper moved to approve Ordinance 24-11 adopting the FY 24–25 Budget and Annual Fee Schedule; Councilmember Coffey seconded, and the ordinance passed 6–2 (YES: Sam Seifert, Michael Venable, Ola Thorpe-Cooper, Tami Walker, Geraldine Champion and Sara M. Coffey; NO: Garry D. Daeke and Lamont Noel). The ordinance is recorded as Ordinance 24-11.
Assistant City Manager Paylor Spruill and City Manager Blackmon briefly discussed municipal borrowing, noting municipal bonds cannot be used for salaries, must be approved by the North Carolina Local Government Commission, and would be appropriate only if the city expects a reasonable return to justify large-scale borrowing. Blackmon said staff will schedule an educational session for council and, if the council wishes to proceed, will contact the Local Government Commission for guidance on bond amounts to support capital projects such as a new fire station and infrastructure improvements.
The council approved the budget and fee schedule as amended; the ordinance is recorded in the City’s ordinance book.