Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the County Budget topic
No spam. Unsubscribe anytime.
Craven County proposes $168.6M FY 2026–27 budget amid revenue shortfalls, plans $20M borrowing
Summary
County Manager Jack B. Veit III presented a $168.6 million recommended General Fund budget that holds the tax rate steady, funds a five‑year CIP, and balances a roughly $20 million shortfall through adjustments, a fund balance appropriation and planned July 2026 borrowing for initial capital projects.
Craven County Manager Jack B. Veit III on Monday presented the FY 2026–27 Recommended Budget totaling $168,611,778 and described a package that holds the property tax rate at 44.48 cents per $100 valuation while using a combination of departmental adjustments and a modest fund‑balance appropriation to balance the books.
Veit told the Board of Commissioners that the county’s total assessed valuation is estimated at $15.8 billion, an increase of about 5.33 percent, and that one penny on the rate generates roughly $1,568,782. He said the recommended budget assumes $121.5 million in General Fund revenue to date, while acknowledging several downward revenue pressures: a drop in ABC Board sales (ABC distribution budgeted at $650,000), a $750,000 reduction in Medicaid Hold Harmless receipts from last year, and federal cost shifts that reduced SNAP administrative revenue by $612,514.
"We took a disciplined approach to get this to balance," Veit said, summarizing staff work to close what began as a roughly $20 million gap (a $16 million structural deficit compounded by a $4 million revenue adjustment). The recommended budget includes a $648,314 appropriation from fund balance to achieve balance and assumes the county will borrow in July 2026 to fund the first approximately $20 million of CIP projects.
The recommended budget includes a 2 percent cost‑of‑living adjustment for regular county employees and budgets a 5 percent increase in health insurance premiums. It also recommends five full‑time positions; staff said most are funded through grants, conversions from contract positions or previously frozen lines rather than new, ongoing general‑fund commitments.
Finance Director Craig Warren summarized the April 30, 2026 monthly financial report, noting the Ending Fund Balance is $58.4 million. Warren flagged that General Fund revenues were down about $2.9 million year‑over‑year and that some county benchmarks are affected by timing differences in sales tax reporting.
Veit highlighted capital investments in the CIP, including Government Center East, Sudan Site redevelopment and courthouse improvements, and said the Board has reviewed and approved CIP years 1–5. He said projects in years 6–10 will be revisited as revenue projections evolve.
The Manager also called attention to education funding: the recommended operational allocation for Craven County Schools is $26,552,876 (up about 4 percent), with school capital funding of $2,898,576 (a 34.4 percent increase). Veit noted the schools had requested an additional $3.8 million in combined operational and capital funding.
Next steps: the Board recessed the session to continue budget review May 19; staff will maintain a "Be Back" list of items needing further detail, and the County intends to return later this summer with borrowing documents should the board finalize CIP funding plans.
