Last year, the Roanoke Rapids City Council approved a 2-cent tax reduction based on projected ad valorem tax revenue, which was overestimated by $1.1 million compared to actual collections. 

This year, despite the city proposing a slightly lower budget than last year, the tax rate remains unchanged. 

This raises important fiscal questions that deserve public discussion.

If last year’s revenue projections were incorrect, why is the city not adjusting the FY 2025-2026 tax rate to account for the shortfall? 

A tax rate increase — even a modest one — could help stabilize city finances, ensuring essential services are funded without unexpected deficits. 

Without an adjustment, are we risking another year of misaligned budget forecasts that will likely strain city departments?

I begged the city council not to lower the tax rate last year, and the city manager insisted that the city would still come ahead due to the property value adjustments.  

Unfortunately, she missed the mark by $1.1 million.  

Since 1 cent generates $136,591, just to get to the originally forecasted mark would mean a tax increase of 8.5 cents to 73 cents.

Additionally, following the budget amendment of $1.1 million to FY24-25, next year’s revenue projections appear to have not been reduced to reflect the actual collections of the current fiscal year.  

This raises concerns about whether the city is planning based on optimistic estimates instead of proven trends.  

Budgeting should be based on accurate financial data, and failing to correct revenue assumptions could lead to future shortfalls, service cuts, or emergency reallocations.

The residents of Roanoke Rapids deserve clear answers from city leadership.  

Transparency in financial planning and accountability for tax decisions are crucial for responsible governance.  

Adjusting revenue projections to match reality and ensuring tax rates align with actual fiscal needs would be a prudent step toward financial stability.

Ephraim Brodsky

Roanoke Rapids