Eleven seconds passed before Councilman Andy Jackson cast a crucial second to Warren Keith Bell’s motion to approve the city’s budget for the upcoming fiscal year — a motion that would go on to gain a unanimous OK from the panel.

Jackson spoke out on enacting a tax increase to fund the city’s $19,836,054 financial blueprint which draws $748,783 from the fund balance.

The tax rate for the upcoming fiscal year remains the same.

His comments were against enacting a tax increase for the upcoming fiscal year, which begins July 1, and had been discussed in an earlier public hearing on the matter.

“I realize that we need to be careful because Roanoke Rapids has a median tax rate of 1.78 percent, which is among the highest,” Jackson said before a motion to approve the budget was made. “The national average is 1.02.”

He said, “While necessary for funding essential services, I realize tax increases negatively affect resident’s finances and contribute to housing affordability challenges. It is important for policymakers to consider policies that balance the need for revenues with the desire to support affordable housing and economic stability. Can we get this out of this budget?”

City manager’s response

City Manager Kelly Traynham replied that the upcoming fiscal year budget is incremental to help the city slowly get where it needs to be. “But we definitely need to look at our strategic planning efforts and our budgeting in the upcoming year.”

However, she said, “We’re only going to be able to do what we can afford to in the budget. I think that the statement that you’re asking us to agree with is an aspirational statement. But again, it’s going to be a tight budget. Our revenues are pretty limited right now.”

Fund balance questions

Councilwoman Sandra Bryant wanted to know how pulling the $748,783 from fund balance would affect the health of the overall fund balance. 

Traynham replied the city has about $3.5 million that is “fully flexible in our discretionary funding … Absent using any fund balance we would have to cut some major services or a department based upon those figures.”

There is a total of about $14 million in the fund balance but the $3.5 million is what is available for discretionary spending.

Call for a motion

Mayor Emery Doughtie asked the council whether they were ready to vote and called for a motion to accept or possibly have another session to discuss it further.

That’s when Bell made a motion to accept the budget “because of the date we’re at right now.”

When no second was immediately made, Doughtie again called for one and Jackson spoke up.

Budget details

The budget approved is about $8,000 less than the one originally advertised, Traynham said before a motion was made. “In our general fund revenues the city does have a struggle with revenue sources. Our tax base is not growing very quickly at all. It’s pretty stable but we’re an aging community and so without much new development our property tax values are one thing to look at. In the upcoming year we will need to really reevaluate our needs based upon the tax values and look at all resources, especially state-directed revenues for any anticipated changes that are going to come that way.”

Without the theater payment, she said, “We’d be able to have a balanced budget without having to use fund balance this year. So the light is at the end of the tunnel as far as that debt is concerned with the last payment being in 2032.”

Conservative budget

The budget is very conservative, Traynham said, as are expenditures. “We do have a lot of needs. We have millions and millions of dollars in physical and structural needs throughout the community.”

Unfortunately, she said, “We just can’t rely on regular revenue funding streams to help sustain and pay for the things that we neglected over years and years of time. A lot of our facilities are outdated. These things did not happen overnight and we’re not going to be able to cure them overnight.”

Strategic plan

The city is in the process of developing its first strategic plan that will be finished in the next couple of months, the city manager said. “With that I feel like once we’re going into the upcoming fiscal year we’re going to have a real sense of direction as we get to prepare the fiscal year ‘27 budget. Budgeting isn’t something we do once a year even though it’s a big project that we work on, but budgeting occurs by practice every single day.”

Other plans

Traynham said the city needs to consider taking on some financing debt or look into general obligation bonds that may require a referendum before taking on major debt. “What we’re finding is some of the key feedback coming out of our strategic planning efforts is that citizens are willing to support increases in taxes if it helps improve the quality of life, facilities and such — especially your parks and recreation facilities.

“People are more willing to consider short-term increases in taxes to improve recreational facilities as opposed to building a new public safety building or something like that. That’s something we’re looking into in consultation with our bond counsel. I feel like the vision for our community remains strong and everyone wants it to be better. Everyone wants things to be better — not just for ourselves right now, but for our future.”