Sales tax collections are less than expected, and there are some additional expenses, too
Blowing Rock Interim Town Manager Lane Bailey gave his budget recommendations to the Blowing Rock Town Council last week. (Town of Blowing Rock YouTube screen shot)
Blowing Rock’s town manager is recommending a budget that would increase property taxes in the town, in large part because of higher pension costs.
At a meeting of the town council last week, interim Town Manager Lane Bailey recommended a $19.6 million budget that includes a tax increase of 5 cents per $100,000 in valuation, which would mean an increase of $300 a year in property taxes on a $600,000 house.
“The budget before you in many respects has been very challenging and in some ways a perfect storm,” Bailey told council members.
He said state requirements are increasing the amount the town has to pay into the pension fund for town employees, while at the same time, sales tax collections are expected to be less than expected for this year – which means a lower budgeted amount for the fiscal year starting July 1.
The budget also includes money for a new garbage truck and improvements to the Glen Burney Falls Trail, including restroom facilities.
The budget calls for 82 full-time-equivalent employees, which is one more than the current year because of the addition of a landscaping position.
The proposal to increase property taxes would raise Blowing Rock’s overall rate to 45 cents per $100 of valuation, or $2,700 on a house assessed at $600,000. Bailey said that rate is “in line with neighboring municipalities in Watauga County.”
The council is holding a work session on the budget this week and is expected to vote on it in June.
Watauga County’s manager last week proposed a budget that keeps the county’s tax rate the same, while increasing funding for schools, the Watauga Democrat reported.
—Tony Mecia