Graham city manager Megan Garner outlined her proposed budget to the city council Tuesday night at the conclusion of the council’s regular agenda.
Garner is proposing a 2-cent tax increase for Graham, the first local municipality to have an increase recommended. (Elon’s town manager initially proposed a 1.5-cent increase, but council members have already trimmed that back to eliminate the increase altogether.)
Mayor Jennifer Talley seemed to justify the tax increase by opining that Graham and other municipalities had been unfairly disadvantaged two years ago by the county’s undervaluation of some large commercial and industrial buildings, those with over 100,000 square feet, she said. (See sidebar story nearby.)
It is the first tax increase in two years. Graham was the only local government to adopt a revenue-neutral budget after revaluation in 2023.
The proposed budget totals $22.7 million; Garner proposes to add five new city employees: a public relations specialist; building maintenance technician; sanitation collector; and three firefighters (one for each of three shifts).
All employees will get a 3 percent cost-of-living increase.
The largest revenue source for the city is its property tax collections. A penny on the tax rate is estimated to raise $270,215. About 35 percent of the revenues come from property taxes, another 30 percent from sales taxes.
The water and sewer budget is set at $13 million.
Water and sewer rates are scheduled to go up 4 percent. Monthly garbage and recycling fees will be increased by $1.00, from $13.50 per month to $14.50 per month.
The council is scheduled to hold a budget work session next Tuesday, May 20, at 10:00 a.m.
A public hearing on the proposed budget is scheduled for June 10 at 6:00 p.m.
Under state law, municipalities and other local units of government must adopt their fiscal year budgets by June 30.
