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Princeton presents FY26–27 budget with no tax-rate increase; commissioners set June 1 public hearing
Summary
Town Administrator King presented a proposed FY26–27 budget that keeps the town tax rate at 0.585, balances the general fund at $2,142,368, and recommends a 3% cost-of-living increase (administration recommended 5%); the board set a public hearing for June 1.
Town Administrator TA King presented the proposed fiscal year 26–27 operating and capital budgets to the Princeton Board of Commissioners on May 4, saying the plan holds the town tax rate steady at 0.585 and balances the general fund at $2,142,368. King said the proposal includes a general-fund contingency of $138,341 and projects an ending fund balance for FY27 of $856,889.
King identified several specific line items for board consideration: $15,000 in police overtime and an additional $5,000 for PD overtime; $7,000 earmarked for police drug enforcement; split backhoe repair funding ($4,000 general fund, $26,000 water/sewer fund); an estimated $20,000 purchase for a Billy Goat leaf machine; and an $18,000 allocation to the Princeton Library. King said no tax increase is proposed for the coming year.
On personnel costs, the budget as presented offers a 3% cost-of-living adjustment (COLA) for eligible employees; King said administration recommends 5% to remain competitive with neighboring towns. Commissioners debated the trade-off between higher COLA levels and reduced contingency, with several members endorsing a 4–5% increase rather than the presented 3%.
The budget package included operational changes and fees: a proposed $1 increase in the monthly garbage fee (from $30 to $31) to offset a roughly 2% per-ton landfill tip-fee increase from Johnston County, a $15 per-meeting stipend for board members, and adjustments to deposit requirements for new utility accounts (out-of-town residential deposits proposed to rise from $200 to $300; new commercial deposits proposed to rise to $500). Staff said changes to deposit policy would apply to new accounts beginning July 1 and would not be collected retroactively from existing customers.
During the presentation, officials emphasized the town’s current financial position: the general fund shown as balanced and the FY26 projected ending fund balance of $718,548. King said revenues and expense projections follow guidance from the North Carolina League of Municipalities and the Local Government Commission norms for small towns.
Action: Commissioners voted to set a public hearing on the FY26–27 budget for June 1. King said the board can still consider amendments before final adoption and that routine budget amendments are expected in June.
What's next: The board will hold the advertised public hearing on June 1 before considering final adoption and any amendments to the proposed plan.
