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County manager outlines budget timeline, revenue sources and debt outlook
Summary
County Manager Hester briefed the board on the 2026 budget process, noting property tax provides roughly 60% of county revenue, sales tax receipts lag about three months, and combined new debt service (including Clayton High School and bond referendums) is currently estimated at roughly $11 million for next year under conservative planning assumptions.
County Manager Hester updated the board on the county's 2026 budget process and several revenue and debt considerations.
Hester said property tax accounts for about 60% of Johnston County’s revenue and that staff is collecting estimates from the tax office and other sources to refine projections. He told commissioners sales tax receipts are typically about three months behind actual transactions, so new retail activity takes a few months to show up in collections.
On debt service, Hester noted the county is planning for the Clayton High School financing and the sale of bonds tied to prior referendums. He estimated combined new debt service related to those two items at about $11,000,000 under conservative planning assumptions and said some offerings include interest‑only first years; premium proceeds or bond sale results could reduce the actual borrowing total tied to the school project.
Commissioners asked about market volatility and whether to delay bond sales; Hester and staff said advisers recommend proceeding and that the county usually attracts multiple bidders, which should help obtain competitive rates. The county is planning with a conservative 5% estimate for interest but expects actual rates may be lower.
Hester said staff will continue to refine budget numbers, that department heads are submitting requests (particularly in public safety and utilities), and that the board will have the ultimate authority over the budget and tax rate.
