Kure Beach hears public concerns about FY2027 budget as property-tax rate and utility fees rise

Kure Beach Town Council convened a legislative hearing on June 8, 2026, to receive public comment on the proposed Fiscal Year 2026–2027 budget, which proposes a $13,892,362 spending plan, a proposed property tax rate of 19.5 cents per $100 of valuation (an increase of 2.3 cents, or 13.4%), and several fee increases that residents said merit explanation.

Mayor Allen Oliver opened the hearing and summarized the budget highlights: the proposed 2027 budget is 2.9% greater than the 2026 final budget; capital expenditures total $1,395,440; the proposal includes a 2.8% cost-of-living adjustment and a 1.5% merit increase for full-time employees; and fee changes include a 35.3% increase to garbage collection fees, a 4.7% increase to recycling fees, and a 10% increase to the water and sewer minimum charge alongside a 20% increase to usage-based tiers. The mayor stated the purpose of the hearing was to receive public comment; he did not adopt the budget at the hearing.

During public comment, resident Alherd Kazura said he appreciated the work on the budget but asked whether the increases are likely to recur in future years and requested financial forecasts and balance-sheet information to show whether the town will end FY2026 with available cash. Michael W. McMahon of 1729 Spot Lane submitted a written statement for the record and requested several specific clarifications. "Please provide a breakdown of the $577,650 property tax revenue increase showing the portion from (a) the rate increase, (b) growth in assessed valuations, and (c) prior-year delinquent collections," McMahon wrote. He also flagged an $149,255 (18.8%) reduction in TDA funding earmarked for Ocean Rescue and asked whether that decline is a one-year fluctuation or a structural trend and what contingency plan would sustain Ocean Rescue if TDA revenue continues to fall.

McMahon noted employee compensation increases of $339,938 are the single largest driver of the $824,647 General Fund increase, and he questioned why a $275,000 beach access and boardwalk repairs line appears in the Streets & Sanitation budget (up $250,000 from FY2026) rather than in the Beach Protection Fund, which shows only $14,500 for FY2027. He also asked for the cost-allocation methodology underlying the $446,400 garbage-collection cost cited in the budget documents (the basis, he noted, for a 35.3% fee increase from $8.75 to $11.84 per cart per month) and requested comparable FY2026 figures so residents could judge proportionality. Finally, he asked whether the town maintains a dedicated reserve or contingency for unanticipated cost increases and storm-damage response and, if so, what the balance and target level are; if not, he asked whether the council would consider establishing one.

Commissioner Byron Ashbridge moved to close the legislative hearing at 6:16 p.m.; Mayor Pro Tempore David Heglar seconded. The council voted unanimously to close the hearing. Town Clerk Beth Chase attested to the minutes; a recording of the meeting is available on the town website under Government > Council.

The public record for the June 8 hearing includes the written submission from Michael W. McMahon and the oral comments noted above. The hearing provided residents a formal opportunity to request detailed breakdowns of revenue changes, explanations for line-item placement (for example, why beach access work appears under Streets & Sanitation rather than the Beach Protection Fund), and documentation of cost-allocation methods that underlie fee adjustments. The council did not provide detailed answers during the hearing. The budget remains before the council for its next procedural steps toward adoption.