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Nags Head outlines campus plan, water-rate increase and septic program in FY26 budget workshop
Summary
At the May 21 budget workshop, staff reviewed capital projects (campus master plan, sidewalks, multi-use path), IT and safety upgrades, a proposed 5% water-rate increase (about $200,000) and a $500,000 0%-interest septic-replacement loan program; commissioners discussed priorities amid lean state funding prospects.
Town staff used the May 21 workshop to recap proposed capital investments, operating costs and utility changes in the recommended FY26 budget.
The budget includes a debt payment of roughly $300,000 tied to a campus master plan that covers replacing the fitness center and workforce housing at town hall; staff said the project may be bid in phases or as a single phase. Planning and development items include continued record digitization and arts-and-culture initiatives. Public-works items in the CIP include sidewalk extensions (Admiral Street), engineering near Jockey’s Ridge and continued multi-use path resurfacing.
Public safety and operations funding in the recommended budget covers three new police vehicles, payments for an RMS system, license-plate-reader deployment, body and in-car camera systems, plus debt service tied to recently acquired property. Staff reported an approximate $455,000 increase in health-insurance costs and included a 3% cost-of-living adjustment in the proposal.
Amy summarized utility and septic items: staff proposed a 5% water-rate increase that would produce about $200,000 to meet operating cash-flow measures tracked by the Local Government Commission, and noted the water master plan study remains incomplete so no structural rate changes were recommended yet. The budget also shows a $500,000 0%-interest loan program for septic-system replacements, $30,000 budgeted for other septic loans, and an assumption the septic-pumpout credit will increase from $150 to $250.
Staff noted water-line replacement and stormwater work are multi-year efforts; state legislative funding is being pursued but staff said the Senate and House initial budgets did not include project allocations and conference negotiations remain ongoing. Commissioners stressed the importance of not falling behind on water and stormwater projects because deferred work would raise long-term costs.
Next steps: staff will incorporate the board’s direction into the recommended budget packet and present details at the June 11 public hearing.
