Nashville adopts FY2026–27 budget with tax and utility rate hikes; council approves electronics pickup fee and annexation

The Town of Nashville on June 2 adopted its FY2026–27 budget, approving a 2¢ increase in the property tax rate and a roughly 15% increase in water and sewer rates while agreeing to revisit several fee details. The council also approved a curbside electronics-collection program with a $5 per-device fee, multiple small budget amendments and an annexation ordinance.

Mayor (speaker 2) and Town Manager Randy (speaker 9) presented the proposed budget as a balanced plan totaling about $17,440,000 and said it meets the council’s goal of maintaining a general-fund balance roughly equal to six months of expenses. "This proposed budget does include a 2¢ tax increase to the town's tax rate, which would take it from 59¢ per 100 to 61¢ per 100 and a 15% increase in water and sewer rates," Randy told the council, noting rising wholesale costs from Rocky Mount and recent rate increases the town could no longer absorb.

Nut graf: The measures passed after a public hearing in which residents pressed the council for transparency about how much of the utility increases are driven by Rocky Mount’s financial problems versus Nashville’s actual service costs. The council voted to adopt the budget but agreed to pull and refine certain fee items (notably yard-waste and bulk-item fees) before finalizing them.

Residents and council members debated the source and fairness of the utility increases. "Why should Nashville residents, seniors on fixed incomes, and local businesses be expected to absorb increases that may be helping another city recover from financial problems unrelated to the actual cost of our water service?" asked Virginia Petzinski (speaker 12) during the public hearing, urging the council to disclose the portion of the rate change attributable to Rocky Mount’s financial recovery and to pursue alternatives to reduce dependence on a single wholesale supplier.

Several residents and council members urged local investments in water supply to reduce reliance on Rocky Mount. Randy said the town has reserved an acre for a future well in the Breedlove/Harvest Creek subdivision, scheduled a geophysical test for August and estimated "we're probably looking at $700 to $850,000 for a full field well," underscoring the cost and risk of producing local water.

On sanitation and fee items, staff proposed moving yard-waste collection to the first and third weeks monthly and suggested a $25 charge for a single bulk-item pickup, with larger volumes charged more. Council members asked for clearer volume definitions and opted to adopt the budget now while pulling the detailed fee schedule for further refinement at a later meeting.

The council approved an appointment-only curbside electronics-collection program (first Friday of each month) with a $5 per-device pass-through fee to cover disposal costs beginning July 1. Staff described a system for residents to prepay and schedule pickups; public-works staff will document items and addresses to minimize disputes about collections.

Votes at a glance: - Ordinance 26-17: Adopt FY2026–27 budget (effective 07/01/2026–06/30/2027), with fee schedule items to be revisited — Motion adopted by voice vote (block_id_start: SEG 1216). - Ordinance 26-18: Annex property at 1278 Red Oak Grove into the town — Public hearing opened and closed, motion carried (block_id_start: SEG 380). - Electronics collection: Approve curbside electronics pickup with $5 per-device fee — Motion carried (block_id_start: SEG 1416). - Budget Amendments: #18 close Fund 71 and transfer $4,415 to general fund; #19 add $500 Sheetz donation for farmers market; #20 accept $2,000 Walmart donation for police cook-team supplies; #21 appropriate $102,629 for insurance reimbursement — All amendments approved (block_id_start: SEG 1428).

Council members emphasized the town’s need to maintain public safety services and infrastructure amid rising costs. The budget book shows a projected ending general-fund balance of about $5,712,000 and cites compliance with North Carolina law on balanced budgets; public notice of the proposed budget was published May 21, 2026. Randy and the council said they will continue pursuing additional wells and other options to reduce future rate pressure.

The meeting concluded after final votes on the budget amendments and the council adjourned.

Sources: Town council meeting transcript (June 2, 2026) and presentations provided at the meeting.