SOUTHEASTERN N.C. — Three Topsail Island municipalities approved their fiscal year 2026-2027 budgets Tuesday, the state’s June 30 deadline, after state legislation required local governments to ignore property revaluations and base tax rates on 2025 values.
North Topsail Beach, Topsail Beach, and Surf City town governments adopted their budgets on June 30, just in the knick of time, as it’s the last day of the state’s deadline.
The passage was held up by Senate Bill 889, which mandated the towns use 2025 property values rather than 2026 revaluations. The bill was signed by the governor on June 19 and requires counties such as Onslow and Pender to freeze 2026 valuations for one year as a temporary fix to constituent concerns over the rising property taxes making it more difficult for residents to remain in their homes.
Read More: N. Topsail tax rate hinges on state decision of property revals, budget deadline looms
“This was one of the weirdest budget cycles I have ever seen,” North Topsail Richard Grant said during Tuesday’s special meeting to adopt the budget. “Hopefully, it will not be repeated next year, that the legislature doesn’t work till the end of June to do something for us.”
North Topsail and Surf City had delayed votes on the 2027 fiscal year budget, while awaiting the legislature’s decision.
North Topsail’s Board of Alderman voted unanimously to pass its $17.4-million budget. The budget’s largest general fund expenditures are $1.8 million for fire, $1.7 million for police, and $1.2 million for administration.
It passed with the current revenue-neutral tax rate of 43 cents, opposed to an also rev-neutral 33-cent rate, in alignment with 2026 revaluation numbers. The municipality presented both tax rates for 2025 and 2026, last month during its public hearing.
The 2026 property values would have resulted in an increase of $314,886 in ad valorem revenue.
There were changes from the town manager’s proposed budget presented at the June 3 public hearing include a $33,848 decrease in the general fund non-departmental expenditures, a $9,420 decrease for future capital improvements, and an $18,909 decrease in the future shoreline protection fund projects.
However, finance officer Wayne Johannessen’s main talking point at the budget meeting surrounded fee changes, specific inspection and police fees.
“Some of the inspection fees were changed to align with what the county charges,” Johannessen said.
Building demolition will now cost a flat rate of $150 as opposed to last year’s base rate of $70. The new rate matches the counties for a single family home demolition in a residential area. Inspection of decks, docks, bulkheads and retaining walls will match the county’s $100 base fee, a $30 increase.
Police fees are for temporary or short-term security for a special event and paid for by people requesting services. They will Increase by $6 from the 2025-2026 fiscal year, at $46, with a minimum service time of four hours. Cancellation fees have tripled from $60 to $184. However, if the cancellation of services is requested 12 hours in advance, there will be no charge. The flat rate of $75 per police vehicle accompanying services has shifted to an hourly rate of $25.
Topsail Beach
Topsail Beach already voted to adopt a budget using 2026 revaluations before the bill was signed into law. Thus, they had to rescind the initial tax rate and give another presentation on changes to reflect 2025 revals.
“We knew there would be a possibility of having to rescind the motion and adopt a new tax rate if the SB889 was signed and we were prepared for it,” Town manager Christina Burke told Port City Daily, who said the town had an “alternate” budget already created and ready.
The Topsail Board of Commissioners voted unanimously June 30 to adopt a tax rate of 48 cents per $100 value for its $20.6-million budget. This is the same as fiscal year 2026 and remains revenue neutral, however the 2025 tax value will see a slight increase from last year’s as a way to account for growth while still relying on 2025 numbers.
The budget differs from what commissioners approved on June 10, with the tax rate reduced to 22.65 cents per $100, though that is also revenue neutral when accounting for escalating 2026 property revals.
The municipality’s largest expenditures come from its general fund with $1.5 million going to police, $1.1 million to fire, and $1.1 million to town administration.
In order to balance the budget based on 2025 valuations rather than the 2026 revaluations, there was a decrease in the fund balance by slightly more than $4,000 in order to match the increase of tax revenue. The increase is due to the town generating the 2026 values collection rate at 95%, 2025’s was set at 98%.
The general fund was decreased by $66,314, the capital improvement fund by $4,849, and the beach intracoastal and shoreline was decreased by $31,288.
No changes were made to the budget’s expenditures.
Surf City
Surf City was the last of the three towns to convene on Tuesday. It cut its tax rate by more than 5 cents; it’s now 47.5 cents per $100 as opposed to the current 53 cents.
Council voted June 18 to postpone adopting its budget, also due to the outcome of Senate Bill 889, but held a special meeting June 30.
The general fund is $19.9 million with its biggest expenditures being $4 million for police, $4.2 for fire, and $3 million of interfund transfer.
Town manager Kyle Breuer told Port City Daily the budget was cut by more than $1 million by delaying one-time purchases and departmental cuts such as a $96,000 decrease of interfund transfers and a $96,963 decrease in disaster operations.
Surf City’s budget passed in a 4-1 vote with Councilman Andy Pleil voting in opposition and Councilwoman Trudy Solomon absent.
Pleil cited concerns over purchasing a new $2.7 million fire truck; the budget suggests $358,750 go toward it as an installment payment. Pleil called it putting the cart before the horse to add the truck funding in the current budget as he has previously suggested exploring other payment plans and has questioned whether putting it in the current budget was the correct decision. Delivery of the truck is estimated to be during the 2028-2029 fiscal year.
Additionally, he mentioned the island roll back program, a free program where crews bring trash and recycling bins back to someone’s residence. He said the town should use accommodation tax for the program.
He said the town can use this tax for anything aside from for a “normal service.”
“The island roll back is exclusively for the island and it is to the benefit of the safety and aesthetics of the island to attract tourism. In my opinion, that fits the model perfectly. Unfortunately we weren’t able to reach a conclusion,” Pleil said. “There are two parts of the budget, I’m sorry, that I don’t agree with. I think the rest of it looks reasonable and decent.”
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