Councilwoman worries that higher taxes and fees will make Valdese unaffordable for residents

Life in Valdese will be more expensive if the proposed 2026-27 budget passes — Councilwoman Heather Ward suggested deeper budget cuts to avoid raising household expenses.

Valdese’s 2026-27 budget proposal represents a town stretching every dollar as far as it can go to cover growing expenses, a heavy debt load, and the need for a public safety building that could cost $10 million to construct without sacrificing residents’ quality of life or reducing the services offered.

Valdese Chief Financial Officer Bo Weichel presented the proposed 2026-27 budget on Monday, consisting of an $8,915,829 general fund and an $8,177,623 utility fund for a total budget of $17,093,452.

While the ad valorem tax rate will remain flat at 42.5 cents per $100 valuation, Valdese staff has proposed adding a new 13-cent fire district tax. This raises property taxes to 54.5 cents.

Weichel said it is resetting the property tax rate, which was 54.5 cents from 2016 to 2022. In the 2023 fiscal year, the rate was lowered to 51.5 cents and lowered again in 2024 to 41.5 cents. The tax remained flat in 2025.

A 41.5 cents property tax rate is not sustainable, Weichel said, considering the town’s needs and costly projects like the public safety building on the horizon.

The $742,338 revenue generated by the fire district tax is earmarked to help fund operations of the fire department, Weichel said. Ad valorem taxes will generate more than $2.3 million in revenue that can be used for any part of the general fund.

The general fund makes up the revenues and expenditures of day-to-day services like police and fire departments, parks and recreation, and planning. Weichel said the fund is supported by tax dollars.

The utility fund is centered on the town’s water and sewer services. This fund is consumer-driven, Weichel said, and operates more like a business funded by water sales and sewer usage.

Ward acknowledged that finding a way to afford the public safety building is a must, but challenged the proposal of raising taxes.

“I know we’re saying fire tax, and you can tie that up in a pretty bow all you want to, but the fact of the matter is we are still raising taxes on our people,” Ward said.

Ward said a closer look should be taken at what the town offers, and what it can cut.

“There are things like our concerts, even. Do we need those?” Ward said. She said Valdese offers things that, “Over 50% of the town really doesn’t care about. … They just want to be able to eat and pay for their medication at this point.”

The median household income in Valdese is about $50,740 according to census data.

The number of Family Friday Night concerts has already been reduced from about 16 this year — one every weekend from June to August — to four next year under the current budget proposal.

Herms said that, over the years, the budget has been cut so much that “there’s not much meat left on that bone.”

Herms and Weichel proposed a number of budget cuts to avoid a $428,908 deficit that included postponing repairs at Tiger Gym and reducing full-time positions to 35-hour work weeks.

“We are operating on the thinnest margin that we’ve ever operated on, as long as we can go back and find records,” Herms said, adding that in more than 20 years of public service, this is one of the most difficult budgets he has ever worked on.

IS THE SKY THE LIMIT?

Ward also questioned the council’s decision to continue fluoridating the town’s drinking water.

The council made this decision at its annual budget retreat on April 14. Herms said that, if the water plant’s fluoride tank was removed, water rates could have remained flat next year.

Continuing fluoridation comes with a hefty price. When the council discussed the issue at its March 30 regular meeting, RJ Mozeley with McGill Associates said $160,000 must be budgeted to replace the old, worn out fluoride tank.

Replacing the fluoride tank is an item in the town’s 10-year capital improvements plan. The $160,000 expense was worked into the 2026-27 budget.

In 2029, there is another $2,163,200 expense listed regarding the fluoride tank.

Ward’s other concern is a projected 7% increase in water rates every year for the next five years.

For the typical resident living within Valdese town limits, that would be a $2.80 monthly increase next year. However, by 2031, the average residential water customer living within town limits would go from paying the current rate of $40 per month to paying $56.20 per month.

Residential customers living outside town limits would go from paying $67.60 now to $95 in 2031.

This projection is an estimate that is liable to change, Weichel said, adding, “That’s our best projection at this point in time.”

McGill Associates created a chart mapping how much revenue Valdese’s utility fund must generate to keep pace with growing expenses tied to aging infrastructure.

In 2026, Valdese needed just below $8 million to cover its expenditures. By 2036, Valdese is projected to need up to $13 million.

Part of the issue is that Valdese’s water plant was built to accommodate 12 million gallons of water per day, because at the time there was more manufacturing, Herms said.

Now, about 3 million gallons are being used each day, meaning far less revenue, but the town must still maintain a system built to pump out 12 million gallons. Herms said there is no way to downsize.

“I want to know, is the sky the limit for what we keep charging every year,” Ward said. “I’m asking hard questions because I want to make sure we are doing everything possible to keep things where our citizens can afford to live and survive in our town.”

Ward added that she has received many calls from residents who do not want fluoride in the water, and said there needed to be more opportunity for public input.

Ward also asked how removing the fluoride would impact the budget long-term. Weichel said the projected rate increases would be slightly lower, but that after 2027, rates would still have to go up.

PUBLIC HEARING ON MAY 28

The 2026-27 budget is not yet final. Valdese will hold a public hearing at Town Hall on Thursday, May 28, during the regular meeting. The meeting starts at 6 p.m.

Residents will have the opportunity to sign up to speak at the public hearing and voice their thoughts and concerns about the proposed budget.