Henderson County adopts FY2026–27 budget, approves 4.3‑cent tax increase to cover debt, school supplements and pay increases

The Henderson County Board of Commissioners unanimously adopted the FY2026–27 Budget Ordinance on June 3, 2026, authorizing the chairman to execute the ordinance effective July 1.

The budget, recorded in Board materials as approximately $244.8 million in gross appropriations following workshop revisions, includes a roughly 4.3‑cent increase in the ad valorem property tax rate. Commissioners said the increase is intended to help fund an estimated $9.1 million additional debt service obligation tied to the JCAR courthouse and detention project, to add a 1% local teacher supplement, and to support compensation changes for the sheriff’s office and detention staff.

Board members and staff said the measure addresses several fiscal pressures. The Board agreed to fund a 1% local supplement for Henderson County Public Schools (HCPS), a $1,190,000 allocation identified during budget deliberations. The package also includes $3,946,337 to support the Henderson County Sheriff’s Office proposed compensation restructure and roughly $178,593 to add two DSS social‑work positions (listed in department requests as a Social Worker II and a Social Worker III). The Budget Ordinance also reflects a decision to reduce the County’s fund‑balance policy from 12% to 10% for FY2027 and to retain approximately $10 million in the Capital Reserve Fund, per Commissioner remarks.

County Manager John Mitchell told the Board the JCAR debt obligation has been added to the County’s books and will require a sustainable funding source in future fiscal years; he said the options will include either reductions in expenditures or increased revenue. Commissioner Rebecca McCall noted that the 4.3‑cent increase would amount to about $4 per week for a home assessed at $400,000 in current market values, a framing she used to describe the proposed change in taxpayer cost.

Other adopted budget decisions included:

- Allocation of $1,898,537 in additional local current expense for HCPS in the adopted tally.

- Funding two Department of Social Services positions (Social Worker II and Social Worker III), with costs included in the FY2027 budget.

- Approval of a $30,000 Register of Deeds passport office request and $50,000 for a Fletcher Library conceptual study.

- A $60,000 Payment in Lieu of Taxes (PILT) allocation for FY2027 — $50,000 to Mills River Fire & Rescue and $10,000 to Gerton Fire & Rescue — to support emergency services on federal lands.

- Inclusion of Change Order #14 for the Judicial Complex/Detention Project ($179,145.08) to be paid from the Owner’s Contingency (previously approved on the consent agenda).

During deliberations Chairman William Lapsley pressed colleagues to postpone a $102,000 Economic Investment Fund match until the County sells a 100‑acre airport property; the majority of the Board retained the allocation and requested the record reflect his objection. The Board also directed staff to evaluate park security cameras and remote‑locking restroom options and to prioritize installations at parks with the greatest need.

The motion to adopt the budget was made by Chairman Lapsley and passed with all commissioners voting in favor.

The Board authorized the Chairman to execute the Budget Ordinance (Enactment 2026.060); the ordinance and related appendices specify appropriations, revenue estimates and the tax levy for FY2027. The ordinance takes effect July 1, 2026.

Next steps: the County will implement the budget on July 1 and staff will report back during the year on implementation details, prioritization of capital projects, and on options for meeting the ongoing debt‑service obligation.