The Drexel Board of Aldermen approved the town’s $5.3 million budget on Tuesday for the next fiscal year, which includes a 4-cent property tax increase.
The Drexel Board of Aldermen passed the town’s $5.3 million budget Monday evening for the next fiscal year, making a 4-cent property tax increase a reality. Town leaders say the increase is needed to prioritize recreation, economic development, infrastructure, and employee recruitment and retention.
The budget sets the property tax rate at 39 cents per $100 of valuation, up from the current rate of 35 cents. The tax bill for a property with an assessed value of $250,000 will go from $875 to $975. Originally, during the town’s first budget workshop in March, Town Manager Bill Carroll recommended a 3-cent increase, but the extra cent will allow for $20,000 more in recreation maintenance and capital projects like a new sign at the R.O. Huffman Center.
The increase in taxes also covers contributions for two officers who retired this year, which will increase by nearly $50,000 in the next fiscal year, Carroll said. Investment in public safety makes up 50% of the budget, while public works represents roughly 25% of spending. Recreation accounts for 19% of expenditures, with the remaining 6% allocated to general government operations.
“We’re still one of the lowest full-service towns in the region,” Carroll said, while comparing Drexel’s future tax rate to neighboring municipalities in the Western Piedmont Region. The only other comparable municipality with a lower tax rate is the Town of Maiden, which has about 2,000 more residents and a Google data center adding to the tax base.
Drexel residents will also pay 4% more for power, with the average monthly bill increasing from $135 to $140. Water and sewer bills will also increase at a minimum increase of $4.99 per month, making the average monthly bill step from $45.43 to $50.42.
The increase still puts Drexel lower than Valdese, Granite Falls, Hickory, Newton, and the North Carolina average, which is $64.60 per month. The only municipality with a lower rate is Morganton, which is considering increases based on usage, not increases to fixed rates.
Prior to approving the budget, aldermen discussed switching employee health insurance from Blue Cross Blue Shield to Angle Health, a new provider that uses the Cigna network. Carroll said the proposal would save the town about $20,000 annually while also allowing retiree coverage through the group plan.
With her experience working in long-term care, Alderwoman Victoria Taylor said she prefers dealing with Cigna over Blue Cross Blue Shield, though board members agreed to get employee feedback before moving forward with the change.
OTHER BUSINESS
- Aldermen approved a $19,500 contract with Carolina Clearing and Excavation out of Taylorsville for the demolition of 200 Park Ave., a duplex damaged in a fire. Property owner Sandra Blakeney offered to donate the property to the town. Town Attorney Rod Willcox said he will conduct due diligence before bringing it back to the board for consideration.
- The board also approved contracts with the Western Piedmont Council of Governments, including a $26,051 two-year contract for code enforcement, a $12,472 two-year contract for GIS maintenance, and a $18,095 one-year contract for planning services.
- Aldermen also approved a project ordinance related to more than $10 million in state-funded water and sewer infrastructure projects, allowing engineering work to move forward.
The Drexel Board of Aldermen will meet next at 6 p.m. on July 7.
