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Surf City officials prepare two budget scenarios as split-county revaluations raise tax‑rate uncertainty
Summary
At a Surf City work session, residents urged council to ease tax burdens while staff said split revaluations in Onslow and Pender counties require the town to prepare two parallel budgets and tax-rate options; staff said reserves and accounting are in order but final decisions depend on county and legislative timing.
Residents and council members pressed town staff on Thursday over property revaluations and how the changes could affect Surf City’s tax rate and budget. Public commenter Doug Viet urged the council to consider reducing the revenue-neutral tax rate or issuing property tax rebates from reserves, saying the manager’s budget “represents a 7.8% increase over prior year budget and a 35 and a half percent increase over 2025 actual spend,” and noting audited financials showed revenue exceeded expenditures by “about 3 and a quarter million dollars per year” and a general fund reserve “more than $16,000,000” at June 2025.
Planning and budget staff responded that the town must plan for uncertainty caused by separate revaluation schedules in Onslow and Pender counties. Kyle Brewer, presenting the budget message, said the town will prepare “two parallel budget messages” to reflect alternative tax‑rate scenarios while county appeals and potential legislation are unresolved. Brewer said the revenue‑neutral rate was calculated at 30.27¢ but the town had recommended 29¢ as an initial proposal.
Why it matters: Surf City spans two counties, and differing revaluation timetables can shift tax burdens between Onslow and Pender residents. Council members said that disparity is a central concern for Onslow‑side residents who have already faced multiple recent revaluations and large increases, and staff emphasized the town cannot set different municipal tax rates by county.
Council members and staff discussed next steps for public notice and timeline. Brewer said the town aims to present both parallel budgets at the May 5 meeting and to follow the statutory advertising and public‑hearing cycle in June; he cautioned that adoption might be delayed if county or legislative uncertainty persists. The council asked staff to provide the proposed budget in advance of the May meeting so the review and 30‑day adoption cycle can proceed.
Public response and follow up: Tracy Rayner, another resident, said Onslow‑side taxpayers have shouldered repeated revaluations and urged residents to pursue appeals with the county tax office. Council members acknowledged the appeals process is separate from the town’s authority and encouraged residents to pursue county appeals while the town continues to refine expenditure assumptions.
The town will present the two budget scenarios at the May meeting and expects to open a public review period before a June public hearing; council members said they may call a special meeting or adopt an interim budget if final values remain unresolved.
