Amid cries for no tax increase, Leland asks for less from residents in new budget

For over an hour and a half at their Thursday night meeting, members of the Leland Town Council sat silently as more than 30 residents one by one took to the podium to voice their concerns about a proposed budget for the upcoming fiscal year.

While many echoed similar concerns about inflation, cost of living and overall, not being able to afford a property tax rate increase of any kind, others chose to attack members of the council itself, tossing rhetorical questions such as "What have y'all done?" and "Are you crazy?" at the five-member board. One resident asked the police chief to check the councilmembers for drugs.

"Are you smoking crack?" he asked, claiming it was a joke.

Earlier this spring, Leland staff presented their original proposed budget for the 2024-25 fiscal year, which begins in July. That proposed budget totaled $56 million and included a nearly 70% property tax rate increase to help make up the 30% increase from the 2023-24 budget, which totaled $42.8 million.

Residents were quick to voice their opposition to the proposed hike, from crowding public meetings to organizing a rally outside town hall . Hearing their concerns, the town council directed Town Manager David Hollis and his staff to revise the budget, this time ensuring less burden on taxpayers.

Hollis presented his revised budget to the council Thursday, this one with a 4-cent increase to the property tax rate, rather than the 16-cent increase originally proposed. Still, residents weren't happy.

"No tax increase," said Rhonda Florian, founder of "Better Government 4 Leland," a group of residents opposing any tax increase. "Not until you cut [staff's] bloated salaries, not until you cancel this big town hall expansion and not until you stop with the incentives to developers. Until then, no tax increase. We're not gonna take it."

What was cut?

Hollis presented the revised budget to the council and public at council's April 18 regular meeting. The original budget totaled $56 million, with $52 million making up the general fund balance. Accounting for the lower property tax revenue at just a 4-cent increase, the newly proposed budget totaled $50 million, with the general fund coming in at $46 million.

The $10 million difference between the proposed budgets meant several items were cut. While some were large items, like the $2 million cut from proposed roadway resurfacing, some small cuts also helped make up the difference.

At the originally proposed 39-cent tax rate, the town would have generated $25.9 million in property taxes, making up nearly 50% of the town's anticipated revenues. At the 27-cent rate, the town estimates generating roughly $18.1 million in property tax revenue, making up 39.5% of the town's revenues.

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Hollis said the 4-cent increase generates an additional $2.6 million in tax revenue. Of that money, he said, $2 million is budgeted for roadway resurfacing and improvements and $600,000 is dedicated to public safety improvements, including funding new police officer positions.

The town originally budgeted $5.5 million to resurface and improve five miles of roads in the town, beginning a 20-year lifecycle program aiming to resurface 5% of the town's roads each fiscal year. With the lower tax revenue, the budget for such improvements was dropped by $1.5 million to $4 million, meaning Kay Todd Road and John Sneed Lane won't see the improvements the town had originally budgeted for.

Previously budgeted improvements to Sturgeon Creek Park were also removed from the budget, along with $2 million for the town's emergency contingency fund, $550,000 in funds for property acquisition and funding for two currently vacant positions.

What's next?

The council unanimously voted to schedule another budget public hearing on May 2 at 6 p.m. The Leland Town Council is expected to adopt a final budget by June 30.

Jamey Cross covers Brunswick County for the StarNews. Reach her at jbcross@gannett.com or message her on Twitter/X @jameybcross.

This article originally appeared on Wilmington StarNews: Amid cries for no tax increase, Leland asks for less from residents in new budget