Greenville’s city manager proposed a nearly 10-cent reduction in the city’s property tax rate in the new fiscal year, but most Greenville property owners still will face a higher tax bill.
Greenville City Manager Michael Cowin and city department heads reviewed their proposed spending plans for fiscal year 2024-25, which begins July 1, at Monday’s City Council meeting.
Council members also recommended a pay increase for police and fire-rescue officers and adding an environmental sustainability manager to the payroll.
Cowin said he and staff would examine how those additions could be made and the likely effect on the budget and present the results during the public hearing on the budget scheduled for June 10.
“This is not a budget I take lightly,” Cowin said. There was much internal debate about ensuring there was enough money to maintain city operations while having minimum impact on the taxpayer.”
Cowin is recommending a city operating budget of $175.67 million. Sixty-three percent of that budget is the general fund, which is a recommended $112.5 million.
The general fund, which is mainly funded through property and sales taxes, is the source of money for public safety, street maintenance, recreation and parks, planning and development, employee pay and benefits, neighborhood and business services and other activities and services.
The budget preparations were driven by the property revaluation completed by Pitt County earlier this year. It saw the city’s tax base increase from $8 billion in 2023 to $11.34 billion this year, a nearly 40.7 percent increase. The increase was broken down into 2.75 percent in normal tax base growth and 37.94 percent in revelation growth.
The county reappraisal process, sometimes called revaluation, ensures a property’s tax value is the same as its market value. Pitt County undergoes the process every four years.
When a local government’s tax base increases, elected officials may adjust the tax rate.
The state requires local governments to publish a revenue-neutral rate, a rate that would provide the same revenue as last year plus one year’s average growth, said Jacob Joyner, the city’s financial services director.
Greenville’s revenue-neutral tax rate for fiscal year 2024-25 would be 36.85 cents per $100 ad valorem valuation.
Cowin is proposing a tax rate of $39.27 cents per $100 tax ad valorem valuation, 9.68 cents less than the current 48.95 cents property tax rate.
The proposed 39.27-cent tax rate will add $2.67 million to the city’s revenues, generating a total of $43.37 million, Joyner said.
To explain what it means for the public, Joyner used the example of a home valued at $200,000 in 2023. The owner would have paid $979 in property taxes during the current fiscal year.
If the home’s value increased by 50 percent to $300,000 because of the revaluation, the owner would owe $1,178 under the new proposed tax rate, a $199 tax increase.
If the staff had recommended the revenue-neutral tax rate of 36.85 cents, the proposed property tax would be $1,106, a $127 increase.
City residents also will have to pay higher county taxes if the county’s proposed rate is approved by the Board of Commissioners. (See related story)
Staff recommended dividing the extra $2.67 million to the following departments: public safety, $1.28 million; public works, $765,000; engineering, $355,000; recreation and parks $125,000; neighborhood and business services, $95,000; and other personnel expenses, $50,000.
Of the public safety funds $139,470 would go to operations, $500,000 to pay adjustments, and $641 to seven additional positions for fire-rescue.
Police Chief Ted Sauls said there has been a 35 percent increase in operational costs since 2022 for both his department and fire-rescue. The money would cover the increasing costs of device maintenance, EMS supplies, personal protective equipment, uniforms, chemical munitions and animal protective services activities.
The $500,000 in pay adjustments is needed to bring officer pay in line with police and fire-rescue departments in peer communities.
It also would eliminate the compression of salaries that occurs when starting salaries are increased without making adjustments across the spectrum, Sauls said.
Later in the budget presentation, Councilman Les Robinson asked how much more money public safety would need to bring it in line with other communities. Sauls estimated an additional $150,000 would be needed.
Cowin said staff would need to factor in expenses such as retirement benefits to make an accurate determination. He said council members should adopt a motion asking staff to explore that amount and the cost of hiring an environmental sustainability manager.
The council unanimously approved the requested motion.
Fire-Rescue Chief Brock Davenport said the $641,000 request was for six positions to staff an additional EMS unit and one new fire marshal position.
Brock said his department hasn’t had an increase in positions since 2018. As the city’s population grows, so does the number of calls for service, he said. In 2018, the fire-rescue answered 18,472 calls. In 2023, the number of calls grew to 20,600.
The new EMS squad would be based at Station 2, which covers the medical district, and where 30 percent of the department’s calls originate.
In public works, $95,000 is needed to hire a utility location position; an additional $300,000 is needed for public works operations and an additional $370,000 is needed for fleet maintenance.
In engineering, an additional $100,000 is needed to make Americans with Disabilities Act improvements to sidewalk access, $100,000 is needed to build more sidewalks and an additional $155,000 is needed for pavement management.
Recreation and parks need an additional $125,000 for special events and community outreach.
It’s recommended that a community engagement coordinator be hired to facilitate more inclusive community participation and ensure community engagement is central to all city initiatives.
Staff also said an additional $50,000 is needed for the proposed changes to the city’s contributions to its employees’ 401(K) plans.
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