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Louisburg council approves FY 2026–27 budget with 7¢ tax increase amid audit and transparency concerns
Summary
After a public hearing that included calls for financial transparency and questions about delayed audits, the Louisburg Town Council adopted a $17.56 million budget and added 2¢ to a proposed 5¢ tax increase (totaling 7¢ per $100) to create general‑fund flexibility for pay adjustments and infrastructure needs.
The Louisburg Town Council on June 30 adopted a balanced FY 2026–27 budget with a total of $17,562,308 and approved a 7¢ per $100 assessed‑value tax rate increment aimed at bolstering the general fund. Town staff had proposed a 5¢ increase; council voted to add two additional cents after public testimony and internal debate.
The budget presentation by Mr. Medlin said the proposed 5¢ increase equates to about $46,986.15 per penny and that a 5¢ increase would generate approximately $234,930.75 for the general fund. The plan also includes a 3.3% cost‑of‑living adjustment for town employees effective July 1.
Public commenters pressed the council on financial recordkeeping, audits and transparency. Resident Ray Starf told the council, “a budget is not just a plan to spend money, it’s a reflection of fiscal reality,” and said the town is “in arrears on two consecutive financial audits,” asking for the exact unassigned fund balance and verification documents. Staff acknowledged problems with reconciliations and told the council the town had retained a CPA, Beverly Stroud, and is working with auditors PB Mares to complete outstanding audits. Staff also stated that a former finance director had committed fraud and that the town is determining the fiscal impact.
Council members debated whether to pass the budget immediately, adopt an interim budget or increase the tax rate to build a reserve; several members said an interim budget would constrain operations. After discussion, council voted to add two cents to the earlier proposal, directing the extra revenue to the general fund to allow flexibility for pay‑study outcomes or capital priorities. The council then approved the FY 2026–27 budget with that tax rate increase.
What happens next: staff said the town will continue reconciling accounts, provide the requested records to the resident who filed the public‑records request, and continue work with the CPA and external auditors. Council members asked for a strategic planning session to prioritize capital needs and to review utility rate studies to align revenues with maintenance and infrastructure requirements.
