Edenton council delays FY26–27 budget as state bill could freeze property reassessments

EDENTON, N.C. 2d The Edenton Town Council voted June 22 to postpone final adoption of its fiscal year 20262d27 budget after staff said recent action in the General Assembly introduced uncertainty over which property values the town must use in tax-rate calculations.

Mayor IW Agnew opened the discussion after staff presented two final budget versions: one based on current revaluation amounts and a second prepared on the assumption that Senate Bill 474 (an amendment to earlier legislation) would re-impose a one-year moratorium on new revaluation amounts for certain counties, requiring the town to use prior-year values. Staff said one tax-rate figure in the packet reflected the revaluation results and a second reflected the moratorium scenario.

"So in the agenda pack, you will notice that there were two versions of a final budget for the fiscal year 262627," said a town staff member with responsibility for budget preparation, noting staff and local officials had been in daily contact with the General Assembly and the governor's office. "If 474 is to move forward, this would delay Chowan County one year... the alternative 2d which is really a one-to-one based on which base values we start with 2d I would recommend the council a tax rate of 55.5." (staff language in transcript).

Council members expressed frustration at receiving late changes from Raleigh and questioned how local representatives had responded. Staff said representatives had tried to intervene but that the amendment altering which counties are included had moved through the legislature with little time for towns to respond.

Faced with that uncertainty, Council moved to table the budget. By voice vote the council agreed to delay action on the FY262d27 budget and budget ordinance and directed staff to stand ready to call a special meeting should the governor act before the town's internal deadline.

Why it matters: The choice of which revaluation base to use affects the tax rate necessary to raise the same revenue; using prior-year values can require a different rate and change the burden that property owners face. Staff said the budgets under consideration did not include planned residential, commercial, stormwater, or solid-waste increases but did include a roughly 8% increase in electric rates in both versions.

What comes next: Council asked staff to monitor developments in Raleigh and, if the governor acts, to schedule an emergency meeting so the council can choose between the two budget versions before local deadlines.

Speakers quoted (first reference): Mayor IW Agnew; (Staff member) (town finance staff).