Currituck budget has 6-cent tax hike, 9-cent increase for Corolla

CURRITUCK — All Currituck property owners could see their property taxes increase by almost 11% beginning July 1.

And for property owners in Corolla, their total tax increase could be even more — 16%.

All this comes after a 22% property tax increase went into effect for Currituck taxpayers last July 1.

Currituck commissioners were presented a proposed budget Monday night that hikes the property tax rate for all county property owners by 6 cents — from 56 cents per $100 of valuation to 62 cents per $100 of valuation. Corolla property owners could also see an additional 3-cent rate increase on top of that to help fund the community’s fire department.

Interim County Manager Rebecca Gay also recommended to commissioners that they put a referendum on the county’s November ballot that would hike the sales tax a ¼ penny to 7 cents. If approved by voters it would raise an additional $2 million a year for the county.

Four cents of last year’s 10-cent increase in the property tax rate was allocated toward the new $60 million Tulls Creek Elementary School, which is currently under construction. County commissioners said last June that another 4 cents would be needed in the 2024-25 budget to be able to pay off the debt service for the new school in Moyock.

But the additional 2-cent increase for all county property owners in the proposed budget, along with a 3-cent increase for property owners in the fire service district in Corolla, is the result of Currituck no longer being able to use occupancy tax money to support public safety services.

Currituck had been using occupancy tax money to help fund the Sheriff’s Office and other public safety services such as fire and emergency services on the county’s Outer Banks.

But a group called the Corolla Concerned Citizens and other individuals filed suit in 2019 challenging the practice and earlier this year the state’s Court of Appeals ruled Currituck could not spend occupancy tax revenue for public safety services.

That left an almost $5 million hole in the county’s budget. The county used $3.39 million in occupancy tax money last year to support public safety services in Corolla and $1.4 million to support the Corolla Fire Department.

“This budget does not include a transfer of occupancy tax revenue to support law enforcement, emergency medical services and fire protection in Corolla,” Gay said.

The proposed 2024-25 budget is $81,939 million, up from the current county budget of $77.3 million. Gay said that 37% of the general fund budget goes to public safety while 20% is allocated to the county’s schools.

If commissioners adopt the proposed budget the Sheriff’s Office would get 10 new patrol vehicles at a cost of $695,000. Emergency Medical Services would get two new ambulances at a total cost of $803,000 while $1 million is appropriated for a new fire truck.

The budget also includes $600,000 for the purchase of new hand-held and in-vehicle radios for the county’s public safety agencies.

Gay said the county would seek state help in funding some of its public safety needs.

“We will continue to seek additional revenue sources, including grant funding opportunities,” Gay said.

In addition to paying for the new school, the proposed budget includes $14.8 million to help with the general operations of Currituck County Schools. It also includes an additional $4.4 million for school capital improvements.

“Historically, the county has been very supportive of Currituck County Schools,” Gay said.

The budget also allocates almost $288,000 to College of The Albemarle. Gay told commissioners that the county will need to consider supporting Elizabeth City State University in the future as well. ECSU is planning to expand its aviation science flight program to the Currituck Regional Airport.

“We look forward to building upon our relationship with ECSU,” Gay said.

The proposed budget also includes a cost-of-living adjustment for Currituck employees of either 8%, 6% or 4%. The employees in the lowest pay grades will receive the 8% COLA while the those in the middle will receive 6%. The highest-paid employees will receive a 4% COLA.

“The (8%) COLA in grades 50-69 provides the greatest increase in pay to those positions where we are currently experiencing the greatest turnover and the greatest number of vacancies,” Gay said. “There are currently multiple vacancies in social services and emergency medical services. They fall in grades 50 to 69 for the most part and the increase will make those salaries more competitive.”

Commissioners will have a budget workshop on June 3 and the public hearing for the budget is scheduled for June 17.