Will New Bern residents see increased taxes next year? City's budget could see inflation
The last time New Bern residents saw a property tax increase was in 2019-20. The tax rate was raised from $0.46 to $0.48 where it currently sits today.
The city of New Bern's more than $130 million annual budget was presented to the New Bern Board of Aldermen last Tuesday night for next fiscal year.
New Bern department heads and staff began compiling budget requests in January. The city will hold a public hearing at its May 24 board meeting for residents to voice concerns or share support and will look to adopt the budget at the June 14 meeting.
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The budget will take effect July 1, 2022, and goes through June 30, 2023.
The city's operating amount is not the same every year and depends on many factors. However, the 2021-22 fiscal year's adopted operating budget increased almost 5% from the previous year, keeping pace with the growth New Bern continues to see.
The current proposed budget shows a 4.7% increase to operate the city, meaning the city has increased its budget by almost 10% in the last two years.
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City staff has proposed a total operating budget of approximately $139,946,333, more than $4 million than last year and more than $6 million the year prior. City Manager Foster Hughes cited the increase in the proposed budget coming from inflation, cost of goods and services, and fuel costs among other things.
Last year, Hughes said the city was able to bring in an additional $627,000 in property tax revenue and $1.4 million more in sales tax revenue.
Nevertheless, utility and tax rates could continue at current levels, as residents may not have to pay for the city to increase its operating budget.
Since 2016, New Bern has boasted one of the lowest property tax rates in eastern North Carolina. The current budget proposes to keep the rate at $0.48 compared to Greenville, $0.52; Kinston, $0.73; Washington, $0.53; Havelock, $0.59; Wilmington, $0.49 and and Wilson, $0.57, according to city data.
Additionally, the Municipal Service District tax could also remain the same at $0.13 for all downtown property owners. The MSD was designed as an additional tax to be used for public improvements.
However, should any unexpected changes present themselves, city staff has the ability to bring those concerns to the board to potentially amend any changes needed. The board would need four votes, a majority, to approve any changes.
"While we are in the middle of an election year, we tried to go with a basic budget," said Hughes during the presentation. "There are some capital items in here that the incoming board will be able to review."
Throughout the COVID-19 pandemic and prior to it, the cost of living for residents has increased significantly. Local municipalities have tried to combat the issue by offering pay increases for their employees.
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In the proposed budget, the city will look to include a 5% cost-of-living raise for all staff, along with a 0-2% merit increase based on employee evaluation through Dec. 31.
Employee salaries
The city is also in the process of conducting a salary study that is expected to be completed later this year. An additional salary increase by the middle of the next fiscal year may also be added depending on the salary study's findings.
"Our employees are one of our greatest assets," Hughes added. "One thing we have seen across the board is salaries are increasing everywhere with local governments. We've also had issues with private industry raising their rates. We have lost some very qualified employees going to the private sector. We have to keep up."
Reporter Trevor Dunnell can be reached by email at tdunnell@newbernsj.com. Please consider supporting local journalism by signing up for a digital subscription.
This article originally appeared on Sun Journal: Budget: New Bern residents could avoid tax increases again next year
