Straining for stabilization, Jackson weighs next budget
Jackson County commissioners have begun the process of budget planning, likely to be full of difficult decisions.
Cory Vaillancourt photo
After last year’s property tax increase, Jackson County commissioners met Feb. 17 to begin planning next year’s budget, balancing fresh revenue growth against rising costs and lingering anxiety from property owners still absorbing the impact of escalating property values — just as a competitive Primary Election looms.
“This year is a stabilization year for people,” said Chair Mark Letson. “We need to keep that in mind.”
Letson’s reminder came as the board opened its annual budget workshop, a sprawling review of revenues, capital projects and mounting personnel pressures that will shape the fiscal year beginning July 1.
Last summer, commissioners delayed adopting the budget amid pushback over the countywide revaluation and the resulting tax bills. Property values surged in many parts of the county, particularly in Cashiers and other high-demand markets, forcing the board to recalibrate the tax rate.
Even with a greatly reduced property tax rate, some taxpayers saw double-digit percentage increases in their tax bills — for some, approaching 30%. The debate exposed tension between rising service demands and the ability of residents to afford them.
On paper, the county enters the new budget cycle with encouraging additional capacity. Finance Director Darlene Fox told commissioners that updated taxable values and revenue projections point to roughly $3.3 million in new-year capacity. Of that, $2.2 million will come from increased property values and a projected 4% increase in sales tax collections worth just over $1 million.
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Payroll adjustments alone — a one-step career path increase and a 2% cost-of-living increase — will eat up more than $1.6 million of that additional revenue. Health insurance costs are projected to rise 5.3%, adding another $376,012 to the expense side of the ledger.
After those expenses, Fox estimated about $1.35 million in additional capacity remaining.
Fund balance as of fiscal year 2025 sits at just over $51 million, with roughly $15 million available above required reserves and commitments.
Meanwhile, outstanding debt as of July 1 is projected at $52,764,000.
Much of that borrowing funds capital projects already in motion — 18 separate endeavors including the administration building, Whittier-Qualla Park, school improvements and the Justice Center, totaling $123 million — all of which commissioners appeared reluctant to interrupt.
County Manager Kevin King walked through the administration building project, noting bids came in roughly $3 million below initial projections.
A new eight-lane track facility is budgeted at $2.5 million, with additional ADA improvements included.
Justice Center renovations and detention center programming remain in design, with estimates still fluid.
Perhaps the most ambitious revenue-generating concept is the new Charles R. Elders Event Center in Whittier, a substantial recreation project named for a late county commissioner who served three terms and passed away last June.
Officials project annual additional revenue from the facility, which would be a good fit for car shows, musical performances and railroad-themed events in conjunction with the Great Smoky Mountains Railroad, in excess of $600,000 once the facility and related improvements are complete, suggesting a potential five-year payback on roughly $3 million in county investment, not including grant support.
“We’ve got some good stuff going on, some stuff that’s, been needed for a long, long time,” said Commissioner Todd Bryson.
But even as Letson urged restraint, partner agencies described growing strain.
Harris EMS Operations Manager Matthew Burrell told commissioners that requests for service continue to climb, placing pressure on staffing and response times. While the county currently relies on an interlocal agreement with the Eastern Band of Cherokee Indians for certain calls, the question of whether to expand county-run coverage surfaced again.
“With our call volume increasing, we are seeing consistent peak periods where our demand is exceeding our available resources during that time,” Burrell said. “Our ambulances are frequently all committed at one time.”
Burrell asked commissioners to fund an additional 12-hour ambulance crew during peak call volume hours at a cost of more than $440,000.
Starting pay for paramedics in some parts of the county remains far below neighboring jurisdictions. Consequently, competition for certified personnel has intensified.
Nate Turner, Glenville-Cashiers Rescue Squad board chair, said his squad runs about 1,100 calls per year, with seasonal population swings that can swell service demand dramatically. Turner made three requests of commissioners.
The first request totals $23,875 per month to address pay disparities with surrounding counties — or about $286,000 annually.
The second seeks roughly $90,000 for a new quick response vehicle, an F-150 outfitted for advanced life support.
The third is an inflation adjustment to overall county support.
Turner said starting salaries at GCRS lag well behind regional averages, making retention difficult.
“Our starting salary right now for our EMT is $16 an hour, and our starting salary for our paramedics is $19.20,” he said, adding that comparable postings in nearby counties average around $25 per hour. “Two of our 10-year shift supervisors are making $4-an-hour less than the starting pay at the services closer to their homes.”
The disparity creates what Turner described as a pipeline problem — training paramedics only to lose them to better-paying agencies with shorter commutes.
At the same time, development in the southern end of the county is accelerating.
Turner referenced billions in projected new construction over the next several years, arguing that investment in emergency services protects the tax base.
“These are $5 million-plus homes,” he said. “The number one — bar none — question they ask the realtors is, ‘What’s the quality of health care in this in this area?’”
He cited a recent rescue in which two ice-climbers fell 90 feet in 48-degree temperatures, a reminder that remote terrain and tourism amplify risk.
Beyond public safety, the workshop highlighted several major capital efforts.
Affordable housing infrastructure also surfaced as a looming cost driver. Three options for water system upgrades near Webster range from approximately $3.7 million to $7.5 million depending on tank size and regional integration.
“There’s going to be roughly about $25 to $30 million invested in that community,” King said.
Surprisingly, there was no discussion about the additional cost of operating a standalone library once the withdrawal from the Fontana Regional Library system becomes official on July 1.
Last summer, every commissioner on the all-Republican board — except Letson — voted to leave the eight-decade regional library partnership over objections to LGBTQ content; initial county estimates were that the withdrawal would add around $500,000 to library operating costs; however, Letson told The Smoky Mountain News earlier this month that the actual increase could be three times that figure.
Letson is currently facing a contentious four-way Primary Election on March 3, likely due to his vote against leaving the FRL.
Bryson, who is also up for reelection, has decided this will be his last term on the board, prompting four Democrats and two Republicans to fight it out in the Primary to replace him. Commissioner John Smith is also up for reelection but has no Primary opposition. Two Democrats have filed to oppose him. Commissioners Jenny Hooper and Michael Jennings aren’t up for reelection until 2028.
Department heads will meet next week to refine requests before the manager presents a formal budget proposal later this spring. By law, budgets must be passed no later than July 1.
