There’s no property tax increase planned, for the fourth year in a row, in Henderson County. Despite the economic burden from Hurricane Helene on local governments, commissioners say they won’t raise taxes on property owners.
The county is one of the only in Western North Carolina not considering a tax hike for the coming fiscal year.
“Commissioners over the years have had a budget and a budget process which prizes security for the taxpayer above all other things,” County Manager John Mitchell said during a recent meeting. “You're going to see that kind of play out in the budget framework that we have here.”
Among the spending priorities for commissioners is Helene recovery, farmland preservation, funding recreation facilities and programs, and sewer system funding. Commissioners will look to tackle these issues and others with a $213,855,974 budget. That’s about $100,000 less than last year.
Commissioners held their budget workshop Wednesday, the first step in approving spending for the next fiscal year. Commissioners voiced support for the manager’s budget proposal, with little controversy. They will hold a public hearing on the budget later this summer.
Henderson County’s flat property tax – 43 cents per $100 of property value – makes it an outlier in the area. Buncombe, Rutherford and Polk are all proposing tax increases.
“ That's a testament to the staff and all the employees to keep us lean and trim and efficient,” Commission Chair William Lapsley said. While the county saw about a 2% decrease in property value after the storm, it was cancelled out by new construction, which added an estimated 4% to the tax base.
The county also budgets conservatively for sales tax and keeps a 12% fund balance – more than the recommended 8%. This year, commissioners will likely use $21 million of the over $50 million in that fund for the budget. Using a chunk of the fund balance – a sort-of rainy day fund that also helps with the county’s credit rating – is not unique to this year.
Most municipal governments in Western North Carolina have pitched tax hikes to avoid cutting programs after a rough economic year following Hurricane Helene. The storm not only caused millions of dollars of infrastructure damage and debris cleanup but also kept tourists away during the height of the fall tourism season.
Tourism is the main economic driver of most of the countries in Western North Carolina and the economic loss of not having tourists in the area after the storm is still being felt.
“The board of commissioners have been talking about Hurricane Helene at every single one of their meetings after the hurricane, and that's gonna continue to be the prime issue as we go forward through this next fiscal year,” Mitchell said.
Residents of the county will have a chance to weigh in on the budget during the June 2 commission meeting.
