Surf City presents balanced $40.16M budget, recommends 29¢ property tax rate and submits plan for public hearing

Town Manager Kyle Brewer presented the Town of Surf City’s proposed fiscal year 2026–27 budget on April 7, outlining a balanced plan that totals $40,160,494 and recommends a property tax rate of 29¢ per $100 of assessed valuation.

“This budget is balanced and totals $40,160,494 for all operations,” Brewer said as he reviewed revenue projections, capital priorities and staffing requests. Brewer told the council the recommended 29¢ rate is below the calculated revenue‑neutral rate of 30.27¢ and that the financing proposed for some capital projects is expected to come from utility accounts or other designated funds rather than by immediate rate increases.

The presentation cited key revenue assumptions, including a projected $3.6 million in sales tax and a projected property tax base of $3,799,245,749 drawn from Pender and Onslow county revaluations. Brewer outlined the capital improvement plan, which included a proposed $2,750,000 ladder truck for the fire department (with an estimated first‑year finance cost of roughly $378,500), $500,000 for a multiuse path, $4,963,415 for beach nourishment and other vehicle and equipment replacements.

Brewer and finance staff said department requests exceeded available revenues by roughly $700,000 in initial requests and that staff applied program delays, targeted reductions and other efficiencies to balance the plan. The recommended budget includes funding for seven new general‑fund positions (three battalion chiefs, three firefighters and one communications coordinator) and a 2.4% cost‑of‑living adjustment for employees, plus merit‑based adjustments.

Council members asked detailed questions about revaluation adjustments, the appeals process used by the counties and the budget’s debt‑service assumptions for major capital purchases. Brewer explained that county revaluations determine assessed values and that the town separately determines its tax rate, and he said staff would follow up with additional amortization and appeal‑rate detail before final adoption.

After discussion, Councilmember John (functional label used in the meeting) moved to submit the proposed budget for public inspection and to schedule the required public hearing; the council approved the motion by voice vote. The public hearing on the proposed FY 2026–27 budget is scheduled for May 5, 2026, at 6 p.m. at the Surf City Municipal Complex, and copies of the proposed budget will be made available online and at town hall.

Background: the budget document presented lists appropriations across funds including a $20,657,787 general fund, a $4,146,251 water enterprise fund and a $6,704,226 sewer enterprise fund. The presentation emphasized that Surf City’s population grows substantially during peak tourism season (estimated up to ~30,000) and that seasonal demand affects sales tax and service needs.