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Aberdeen staff present budget priorities as fund balance tops 49%; town eyes 6% COLA and retention bonuses
Summary
At a March 7 budget retreat, town staff outlined a schedule leading to a May budget hearing and proposed a 6% cost-of-living increase plus a $320,634 retention-bonus plan funded from current-year savings; departments presented capital requests including a $2 million water line and SCADA upgrades.
The Aberdeen Town Board met March 7, 2025, at the Aberdeen Police Department for a budget retreat where Town Manager Paul Sabiston and department heads outlined the fiscal calendar and major spending priorities for FY 2025–26.
Sabiston told the board the retreat schedule calls for department heads to submit first drafts to management by March 19, a staff draft to be presented to the board April 14, a recommended budget to be issued May 22 and a public hearing to be scheduled for May 27. "We will hear from each department today on their requests," Sabiston said.
Finance Director Butch Watson said the town's available fund balance is currently above 49 percent and noted higher-than-budgeted investment earnings so far this year. Watson also highlighted operational improvements: online utility-billing enrollment is about 97 percent, and the remote-read meter conversion is nearly complete for all but very large meters.
Town Clerk Regina Rosy, who presented human-resources metrics, said Aberdeen has 118 full-time employees and a 20 percent turnover rate in 2024. Rosy recommended a 6 percent cost-of-living adjustment for FY 2025–26, targeted market pay adjustments primarily for the police department, and a Career Development Program. She told the board staff proposes repeating a retention-bonus program and estimated "the cost to implement would be about $320,634," adding current-year salary savings mean the town would not need to increase the budget to fund the bonus.
Rosy also warned of insurance and pension cost pressures: the North Carolina League of Municipalities' health-insurance pool will end June 30, 2025, prompting staff to solicit bids from carriers; and the Local Government Employees' Retirement System rates are expected to rise to 14.35 percent for general employees and 16.08 percent for law enforcement.
Manager Sabiston identified one new requested position for the coming fiscal year — a planning technician — and reiterated the town is continuing several downtown and facility projects, including Sportsplex construction and a new library facility under way.
Board members asked clarifying questions during presentations about projects and staffing; Commissioners raised the need for continued recruitment and discussed potential uses of town-owned property for recreational projects such as pickleball courts.
The retreat concluded after department presentations and a review of next steps; Commissioner Wilma Laney moved to adjourn, Commissioner Elease Goodwin seconded, and the motion carried 5-0.
What it matters: The proposals on pay increases and bonuses, coupled with a high fund balance, shape the town’s near-term capacity to retain staff and advance capital projects. The board will consider the draft budget at the April 14 meeting and receive the recommended budget in May.
