Henderson County presents $227.21 million FY2027 proposed budget; tax rate held at $0.431

Henderson County Manager John Mitchell presented the Board of Commissioners with the County Manager's FY2027 Recommended Budget on May 20, asking the board to discuss the document ahead of a public hearing scheduled for June 3, 2026.

The recommended General Fund budget totals $227,208,372. The recommended tax rate remains $0.431 per $100 of assessed value and the recommended collection rate is 98 percent. Staff identified $17,713,432 of fund balance to be appropriated in FY2027 to balance the budget.

Financial Services Director Samantha Reynolds outlined revenue and major expenditure drivers: ad valorem tax receipts and local option sales taxes account for the largest shares of revenue, and planned transfers and debt service were focal points. The proposed budget shows total general fund revenues of approximately $227.21 million and a similar level of expenditures under the recommended plan.

The County's debt service obligation rises substantially in the FY2027 proposal, reflecting recent financings for several large capital projects. Reynolds told the board that the increase in debt service is largely attributable to new borrowings tied to the detention-center expansion, courthouse expansion, and the UNC Health/Pardee medical office building, and she reviewed the debt-schedule projections included in the presentation.

Department-level highlights included continued funding for public safety and health services, an ongoing capital program for Henderson County Public Schools and Blue Ridge Community College, and targeted adjustments across general government departments. Staff presented a long list of unfunded department requests for board consideration; the budget message and materials include a tax-rate equivalent for those requests should the board direct additions.

Sheriff Lowell Griffin raised staffing and retention concerns during the workshop, flagging School Resource Officer vacancies and saying several employees were unable to afford housing in the county. Board members asked staff to provide figures on lapsed salaries and the fiscal impact of potential salary adjustments ahead of the public hearing.

The Board approved the revised meeting agenda and directed staff to present any additional figures requested by commissioners prior to the public hearing on June 3. The budget must be adopted by June 30 in accordance with state statute.