Tax rate to remain steady in Rutherford College

The property tax rate in Rutherford College is likely to remain at 12 cents per $100 valuation for the upcoming fiscal year.

The unchanged tax rate was recommended to Town Council by Town Manager Jessica Bargsley on Monday evening at a budget workshop.

Council is expected to approve the town budget and its attendant property tax rate at its regular meeting on Monday, June 2, at 7 p.m. at Town Hall.

Property tax revenues are expected to generate nearly $230,000 of the $1,008,400 proposed general fund budget for fiscal year 2025-26.

In contrast, sales taxes are being counted on to bring in $490,000 to the town coffers during the same time period.

“The hope is that the economy will continue to be healthy and that those sales tax figures will stay steady or continue to grow,” Bargsley said.

While the property tax rate is expected to be unchanged, municipal water and sewer customers will see a small uptick in their bills.

The Town of Valdese, which provides water to Rutherford College for resale, has announced a 5% rate increase for the upcoming year.

Valdese and Burke County both provide sewer service to the town, and both have announced a 10% rate hike for the fiscal year ahead.

In response, Bargsley has proposed a rate increase of $1 on the municipal water rate and $2.40 on the municipal sewer rate.

The increases mean the typical residential water and sewer bill in the town will rise from $66 per month to $69.40 per month.

“Both Burke and Valdese are likely to go up on our rates again next year,” Bargsley told the board. “So, we have to be prepared for that happening.”

UTILITY PROJECTS

Bargsley noted that the Town plans to complete a number of utility projects in the upcoming year, including:

• $116,000 to replace antiquated galvanized water and sewer pipes on Pine Street.
• $80,000 to replace galvanized pipes on McGuire Street.
• $154,000 to replace galvanized pipes on Carswell and Lloyd streets.
• $25,000 for the first phrase (grading) of the construction of a new utility building for town.

The estimated costs of these projects are based on projections made by the engineering firm West Consultants. The projects have been put out to bid, with bid opening scheduled for Thursday, June 12.

GENERAL FUND EXPENSES

Among the expected general fund expenses for the new year, for which estimated costs have not been established, are:

• Purchase of a new tractor for the Public Works Department.
• A new contract with the Morganton law firm Beyer & Lippert.
• The replacement of two computers in the town offices.
• Update of the audio/visual equipment in the council chambers.

During the upcoming year, Bargsley said town staff will be exploring the building of an entertainment stage on the town hall grounds, which are adjacent to the town greenway park, the purchase of more ADA accessible play equipment for the park, and the possible addition of a disc golf course to the park.

Also included in Bargsley’s proposed budget is a 2.5% cost of living raise for town employees, with the possibility of additional merit raises.