Budget increases, millage rate decreases in Jackson
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The proposed Jackson County budget for fiscal year 2025-26 contains a six cent decrease in the millage rate, and yet, for most people in Jackson County, property tax bills will increase significantly.
The county underwent a property revaluation this year which resulted in a massive increase in real property taxable value for Jackson. Prior to the revaluation, real property taxable value stood at about $11.45 billion. As of Jan. 1, that number had increased by almost $7 billion, or 60%, to about $18.4 billion.
“We’re projecting the tax base to grow nearly $7 billion, over 60%, which is a huge amount” Tax Collector Tabitha Ashe said when she presented the information to the board in January. “In 2021 it went up 17%, maybe $1 or $2 billion.”
Following a property revaluation of such scale, the county makes significantly more money from property taxes. Therefore, counties have the option to choose the revenue neutral rate — a lower millage rate that results in the same revenue as was garnered from a higher millage rate prior to revaluation — or to maintain the same tax rate which results in higher property tax revenues for the county.
In this case, for the 2025-26 fiscal year, the revenue neutral rate would have been $0.2691 per $100 of assessed property value. That’s the rate that would have produced the same revenue as property taxes in last year’s budget when the millage rate was $0.38 per $100 of assessed property value.
However, when King presented the budget to the board on May 20, the property tax rate was proposed at $0.32 per $100 of assessed property value. This means that despite a decrease in the tax rate, most people’s property taxes will actually increase because the rate is above the revenue neutral rate.
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King said that by his analysis of tax rates in North Carolina, the $0.32 rate will make Jackson County the county with the fourth-lowest property tax rate in the state.
“We’re still meeting all the needs of our citizens and keeping the tax rate as low as possible,” said King.
“The proposed general budget is balanced in accordance with the state law and revenues and expenditures totaling $106,938,560,” King told the board in his budget presentation. “The proposed budget will constitute an approximate increase of 4.46% over the current fiscal year 2025 amended budget. All proposals within the general fund are based upon a budget with a tax rate of 32 cents per $100 of value which is a six-cent decrease.”
The current fiscal year 2024-25 budget was approved at $93.8 million.
Some of the biggest expenditures are public safety at 24.97% of the total budget, education at 21.6%, human services at 18.44% and general government at 17.08%.
The proposed FY 25-26 budget contains several personnel recommendations including a one-step increase on the career path for all employees and a 2% cost of living adjustment.
“It is recommended that all employees move up one step in the current grade and step plan,” said King. “This action is necessary to maintain the career path system and then also the 2% COLA.”
King also recommended that bonus leave be changed from two-and-a-half days to 40 hours per employee per year, to give staff additional time.
According to King, there were several new positions and position reclassifications requested for FY 25-26. In the proposed budget King recommended two new full-time real property appraisers; one full-time computer and GIS support tech for elections; two full-time general utility workers for grounds; one full-time lieutenant school resource officer, one full-time evidence technician and two full-time road patrol deputies.
“These are the animal control offers that are going to be utilizing the sheriff’s department for enforcement,” King said of the two full-time road patrol deputies. “It’s a hybrid, so they’re going to be dealing with the enforcement piece from the standpoint of the interaction with the public, and then we’re going to have the animal control folks take care of the actual animal. So, it’s kind of a dual system.”
King also recommended one full-time processing assistant for code enforcement in Cashiers; one full-time staff attorney for social services; one full-time assistant recreation director and one full-time park attendant; as well as one full-time wellness coordinator for Cashiers Recreation.
Hospitalization and dental insurance premiums will increase by 2%. The employee rates will remain the same. Worker’s compensation insurance and liability insurance will increase by 2%.
Capital needs in the FY 25-26 budget are estimated at $4,070,140. Of that, $1.5 million will go toward equipment, $1.2 million will be spent on vehicles and $1.3 million will be spent on improvements.
The county is proposing an allocation of $10,771,553 to Jackson County Public Schools, which is a 6.6% increase from the current year budget. This includes $8,509,518 for current operations, $928,222 in teacher supplements, $483,813 for counselors, $700,000 for free lunches at all schools and $150,000 for the new JROTC program.
The school system’s capital outlay totals $1,455,700 and includes technology expenses, one-to-one devices for students, maintenance and security.
County staff are also recommending an additional $2,974,901 for public school capital expenditures in FY 25-26 out of Articles 40 and 42 sales taxes, as well as $2,889,000 out of the Article 46 sales tax fund to be used for educational purposes.
“These sales tax funds, grants and available lottery proceeds will be part of the funding for the public schools FY 25-29 facility capital improvement plan,” said King.
The county will increase its allocation to Southwestern Community College by 3% in the coming fiscal year for an amount of $3,010,437. It will increase funding for Jackson County Libraries by 2%, allocating $1,415,000 to the Fontana Regional Library system to operate both the Jackson County Library and the Albert Carlton Library in Cashiers.
It is proposed that Canada, Savannah and Balsam volunteer fire departments receive a 5% increase in allocation.
Cullowhee Fire Department is being funded at $1,325,550.
“This will enable the department to increase the paid member on staff 24/7,” said King. “Mutual aid is provided to other departments within the county. This proposed funding amount provides enough funding for 11 full-time fire personnel.”
Qualla Fire Department is being funded at $1,179,993.
“Due to the volume of calls, this will enable the department to have paid members of staff 24/7,” said King. “The district coordinator positions at the department will be eliminated. Mutual aid is provided to other departments within the county. The proposed funding amount provides enough funding for 8 full-time fire personnel.”
The Sylva Fire Department is being funded at $1,187,602.
“This will enable the department to increase the paid member on staff 24/7,” said King. “The proposed funding amount provides enough funding for 10 full-time fire personnel. The Town of Sylva has added one additional personnel with town funds to the operations allowing for 11 full-time personnel.”
The Glenville-Cashiers contract for ambulance service is recommended to increase to $1,550,881. This increase includes a 3% cost of living adjustment and an additional funding for station 2. A debt payment of $350,000 is being recommended for the new Glenville-Cashiers rescue squad facility at a cost of $4,500,000.
Harris EMS contract for ambulance service is recommended to increase to 2,174,023. This allows for three additional employees and a market adjustment for the employees.
The budget proposes that most nonprofits be funded at the current FY 24-25 levels. However, an increase is proposed for AWAKE, Cashiers Chamber of Commerce, Center for Domestic Peace and the HERE program.
New funding has been proposed for Village Green and Vision Cashiers.
Mountain Projects’ request of $1,500,000 for Webster Village Partnership was recommended to be funded over a two-year period. The final $750,000 is included in this proposal.
Changes are being made to the fee schedule for recreation department fees; solid waste availability fee recommendations will remain the same.
“The budget process is never simple or easy,” said King. “It takes time, effort and the necessary ability to make hard choices and sometimes unpopular recommendations. We strive to include all necessary expenditures without the need to increase the tax rate. I would like to thank all county employees, elected officials and organizations who work hard to provide the eservices to the citizens of Jackson County.”
The county was scheduled to hold a public hearing on the budget during its June 3 meeting and is tentatively expected to approve the budget during its June 17 meeting.
