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North Beach council adopts constant‑yield tax rate; COLA decisions stall and fee increases proposed
Summary
The North Beach council adopted the FY27 constant‑yield tax rate (0.4859) but failed to pass a staff COLA after multiple tied votes; staff presented FY26 CIP results, FY27 requests and a broad fee‑schedule update and will return with refined numbers next week.
The North Beach Town Council on Tuesday adopted a FY27 constant‑yield tax rate of 0.4859 but did not finalize a staff cost‑of‑living adjustment (COLA) after three separate motions produced ties or failed votes. Council and staff also reviewed the FY26 capital improvement program (CIP), discussed FY27 project requests and presented a large proposed fee schedule update for further review.
Veronica Atkinson, the town’s CIP and budget staffer, summarized FY26 work and FY27 requests: she said the town completed a range of projects in FY26 with a total value of about $1,400,000 and that FY27 project requests under consideration total roughly $1,800,000. Staff proposed a budget amendment to move approximately $32,000 from the FY26 road paving allocation into a saddle replacement project for water system work.
Public works director Sholly Donaldson described planned operational upgrades: the town intends to consolidate multiple SCADA systems into a single, simpler monitoring system for pump stations and to replace aging generators at Chesapeake Avenue and Greenwood Avenue pump stations. Atkinson and the town clerk, Stacy Myler, also discussed grant opportunities: a DNR green infrastructure grant application is due next Friday and staff said the town can apply for up to $150,000 for the project.
On personnel costs, staff reviewed options for a FY27 COLA. Council members moved and voted on several rates: a motion to adopt a 2.5% COLA was made and seconded but failed on a 3–3 roll‑call tie (transcript names recorded as Greg: Aye; Michelle: Nay; Ken: No; Allen: Nay; Mary: Aye). Subsequent motions for 3.1% and 3.0% also failed in council votes. Staff said the COLA decision will be revisited next week when the mayor is available.
On property tax policy, council members moved and adopted the state‑recommended constant‑yield rate (0.4859) to preserve revenue while allowing the rate to fall with higher assessments. Staff explained that choosing not to adopt the constant‑yield rate would require a public hearing.
Staff also presented a comprehensive fee schedule update designed to better recoup staff time and align some charges with neighboring jurisdictions. Proposed changes cited in the briefing included increasing rental‑license per‑unit fees (example shown increasing the per‑unit fee to $300 with one inspection), higher building and permitting fees for new construction and additions, consolidation of card/ACH fees into a single administrative line (a basic fee of $1.50 or 2.5% of the total), and increases in water and sewer connection fees. Council members pressed staff for comparisons and suggested options such as graduated resubmission fees to discourage repeated incomplete submissions; staff agreed to return next week with refined analysis and options.
Town staff also reported financial context useful to budget choices: the rainy‑day fund balance in February was reported at $4,071,000 (staff said this figure fluctuates monthly), and staff noted most current town debt is projected to be paid off in the next two years.
Before adjourning, council agreed to continue deliberations on the COLA and the fee schedule at the next meeting. A motion to close the meeting carried and the council adjourned at 8:11 p.m.
