LELAND — The Town of Leland is proposing not to increase property taxes this upcoming fiscal year. Fire fees will increase by 10% in July; these fees increased by 20% during the current fiscal year.
Local governments across the country are facing shortfalls and making cuts to accommodate the economic impacts of Covid-19, but Leland’s proposed budget appears stable.
Related: Despite $4.6 million revenue dip, no tax increase proposed in Brunswick County budget
The overall proposed $30.4 million budget is up 12% from the current fiscal year. Property tax is projected to increase 12%, up to nearly $7.3 million with a near-perfect projected collection rate. Comparatively, Brunswick County budgeted a slight downturn in its property tax collection rate, given economic uncertainties that may cause homeowners to delay or fail to pay their taxes.
Given years of unprecedented growth that landed the town at the top of the state’s 10-year growth list, property tax generated from this growth may buoy negative impacts from sales tax.
In a budget message, Town Manager David Hollis described how the town’s growth may dampen Covid-19’s impact on the town.
“A growing population has naturally contributed to a growing tax base that helps the Town retain a very modest tax rate while providing exceptional services. The growth in tax base, the stable nature of property taxes, and the fact that property tax revenues account for about 35% of the Town’s revenues potentially lessen the overall impact of the COVID-19 pandemic,” according to the budget message.
Despite the closure of many businesses due to Covid-19, sales tax collection for the fiscal year is projected to increase by 6.5%, making up 29% of the town’s revenue. Because sales tax is delivered to municipalities on a quarterly basis, the town won’t receive figures that reveal Covid-19’s impact until June.
“The current revenue projection is conservative, yet optimistic, and staff will diligently monitor sales tax distributions in the coming months and adjust spending as needed,” according to the budget message.
Meanwhile, Brunswick County predicts sales tax will dip by 17%, resulting in a $4.6 million shortfall.
The town plans to add 18 new employees in the upcoming fiscal year, with 12 in the Fire Department. Nine are needed to staff a new fire station, according to the proposed budget. Overall, the proposed fire budget is up 16% from the current fiscal year. Chief John Grimes will head the newly-created Emergency Management department, with a total budget of $180,000.
Several capital projects that may have received funding under normal circumstances will likely remain on hold this upcoming fiscal year. This includes projects like Sturgeon Creek Park, Founders Park improvements, a greenway project, and more.
Leland will host a special meeting to include a public hearing on the proposed fiscal year 2020-2021 budget on June 1 at 6 p.m.
Council will meet for a budget retreat on June 15. The new budget will go into effect July 1.
