Harnett County delays FY2026–27 budget as state reappraisal moratorium alters revenue outlook

HARNETT COUNTY — Harnett County commissioners on Tuesday agreed to delay final approval of the fiscal year 2026–27 budget after staff said a newly enacted state law, Senate Bill 889, requires the county to use the 2022 schedule of property values for the coming year. County staff said that constraint significantly reduces revenue projections and complicates levy-rate decisions.

County staff told commissioners that one penny on the tax rate generates approximately $1.57 million in local revenue, a figure the board used to illustrate the wide gap between levy scenarios under the older 2022 values and the new 2026 appraisal roll. Staff said an adopted levy based on the 2022 values would be roughly a 75-cent rate, versus an estimated 62-cent rate under full implementation of the 2026 appraisals, producing tens of millions of dollars in different revenue outcomes depending on the final adopted rate.

The discussion also centered on Senate Bill 474, a separate measure that would exempt Harnett County from the state moratorium and allow use of the updated 2026 values. Staff reported that SB 474 had passed the House but had not cleared the Senate as of the meeting; commissioners were told local representatives were working to remove an amendment that had stalled the bill. Because the bill’s status was unresolved and the statutory deadline to adopt a budget looms, commissioners concluded it would be prudent to postpone final action.

Staff cited North Carolina statute 159-15, which allows a county to amend its budget ordinance before Jan. 1 if post-adoption revenues differ substantially from estimates. County staff said that option would permit the board to adopt a budget under the current 2022 values and later lower the levy if SB 474 were enacted and revenues proved substantially greater than anticipated.

Commissioners reviewed practical costs associated with switching valuation schedules. Staff estimated a transition to the 2022 values would carry an initial administrative and software cost of about $350,000. If the county later reverted to the 2026 values, staff said the county would not need to rebuild software files but would need to issue a second set of tax notices, with an estimated mailing and postage cost near $100,000.

The board also heard that several fire districts had submitted late requests for tax-rate increases to meet operating needs; Anderson Creek requested the largest increase, 4 cents. Commissioners discussed whether to address those requests immediately or fold them into the special meeting consideration.

A county staff member, Christine, said the county typically prints tax bills by July 31 but can delay bill printing until the status of SB 474 is clear to avoid duplicate mailings. Staff agreed to prepare two budget packages — one that adds a requested family and children’s Medicaid lead worker in the Department of Social Services and one without that position; staff noted the county would receive about 30% reimbursement for that role if approved.

After debate, the board reached consensus to hold a special called meeting on June 30 at 8:00 a.m. to adopt a budget and levy once the legislative picture is clearer. No formal levy or budget adoption occurred at the session; the meeting adjourned after scheduling that special session.