Yadkinville manager revises budget after revenue error; board backs fee change for large water/sewer taps

Mayor Eddie Norman and the Yadkinville Board of Commissioners were told on Monday that the town’s draft 2026–27 budget needs revision after Town Manager Mike Koser acknowledged an error in earlier revenue projections.

Koser told commissioners he had corrected the forecasting mistake and presented a revised Manager’s Recommended Budget that reduces projected revenue by $317,095. He said he intends to shift two planned police vehicles and a Public Works vehicle into the current fiscal year rather than deferring them, a move tied to the updated calculations. When Mayor Norman asked whether the town would use fund balance to balance the revised budget, Koser replied, "No."

Public Works Director Jacob Swaim told the board the town’s current water and sewer tap rates do not fully cover the time and materials required for larger taps. He said two-inch taps are typically requested for commercial buildings and recommended the town quote time-and-materials for any tap larger than one inch. After discussion, the board agreed to change the fee schedule so that taps over one inch are priced on a time-and-materials basis and customers receive a quote for the work.

Koser also warned commissioners that multiple pieces of proposed state legislation could limit the town’s ability to raise the property tax rate in future years, potentially capping annual rate increases at around 3% if those measures become law. He did not propose using fund balance to offset the revised revenue picture.

Next steps: staff will incorporate the corrected revenue figures and the revised fee schedule into the draft budget for further review at subsequent budget meetings.