Haw River’s town council is tentatively scheduled to vote Monday night on town manager Sean Tencer’s $9.5 million proposed budget for 2026-27, which recommends keeping the municipal property rate at its existing level of 44 cents per $100 of valuation while increasing water/sewer and sanitation fees by 5 percent.
Tencer’s proposed budget reflects a potential reduction of $949,667 (9.1 percent) from the $10.4 million budget that Haw River’s town council had adopted for the current 2025-26 fiscal year that ends June 30.
General fund spending would decrease by $227,331 (6.8 percent); the budget for the water/sewer fund would increase by $480,644 (16.5 percent) due to additional revenue generated by the proposed 5 percent increase in the town’s water/sewer fees, based on the proposed budget that Tencer recently presented to the town council.
“I wouldn’t say it’s an extravagant budget,” Tencer said Tuesday afternoon in an interview with The Alamance News. “I would say it’s neutral.”
The total budget is projected to decrease as the town continues to spend down the remaining proceeds from a $6.1 million grant that the Haw River Fire Department had received through the biennial state budget that the General Assembly passed in September 2023, Tencer explained Tuesday afternoon.
The town began the 2025-26 fiscal year with $3.9 million in proceeds from the grant, spent approximately $1.5 million, and is estimated to begin the new fiscal year on July 1 with $2.4 million in remaining grant funds, based on a breakdown that Tencer provided to the council earlier this month.
About half of the state grant, $3.1 million, is being used to fund the construction of an addition and renovations to the fire station, which is currently operating out of the municipal civic center along Stone Street, according to town officials.
Water/sewer budget proposed to increase by 16.5 percent
The budget for the water/sewer fund would increase by $480,644 (16.5 percent) for the upcoming fiscal year, from $2.9 million budget for 2025-26 to $3.4 million, under Tencer’s proposed budget.
Minimum water/sewer bills that include garbage and recycling service would increase by $3.10 per month, from $69.90 to $73 per month.
The minimum monthly rate per 2,000 gallons of water would increase by 89 cents, from $17.50 to $18.39 per 2,000 gallons, under Tencer’s proposed budget.
Minimum monthly rates for sewer service would increase by $1.58 per 2,000 gallons, from $31.39 to $32.97 per 2,000 gallons.
Water and sewer fees produce the largest stream of revenue for the town’s water/sewer fund.
Tencer said in the interview Tuesday that he’s recommending a 5 percent across-the-board increase in water/sewer fees in order to cover the town’s cost to purchase water and sewer services from the city of Burlington, whose city manager has recommended a 5 percent increase in water/sewer fees for 2026-27.
The town’s stormwater fees would remain unchanged at $2 per month, under the manager’s proposed budget.
Fees for sanitation (garbage and recycling) would increase by 74 cents per can (5 percent), for a minimum monthly bill of $19.64, which Tencer said is in line with the projected increase in Consumer Price Index rates under the town’s contract with GFL waste services.
Meanwhile, the budget for Haw River’s general fund – which primarily funds the police and fire departments, as well as the town’s administration – would decrease by $227,331 (6.8 percent) in 2026-27, under Tencer’s proposed budget.
The town manager is also proposing to transfer $40,000 in fund balance (“rainy-day savings”) within the general fund to a fire capital reserve fund.
Tencer told the newspaper that, customarily, the council has set aside a portion of unassigned fund balance within the general fund “so we’re not in shock” when big-ticket expenditures (such as turnout gear for firefighters) arise.
Manager proposes no new positions; 2 percent COLA for existing staff
The manager isn’t proposing to add any new positions for the upcoming fiscal year but is proposing to convert an existing part-time position in the sewer department to a full-time position in the public works department to help with testing and compliance. That employee would also continue to assist as needed with water leaks and large public works projects, Tencer told the council earlier this month.
The police department requested funding for one new patrol vehicle at $70,000 and one new administrative employee; neither is funded in Tencer’s proposed budget.
The fire department requested two new full-time employees in order to have two firefighters per shift, which also aren’t funded in the proposed budget.
Instead, Tencer has recommended that the fire department continue to focus on completing the expansion and renovation of the fire station, using the remaining funds from the $6.1 million grant, for which the town has received a one-year extension of the spending deadline, he explained in his budget message for the council.
Like its municipal counterparts elsewhere in the county and state, Haw River’s costs for employee benefits are projected to increase in 2026-27.
Tencer has proposed funding a 2 percent cost-of-living adjustment (COLA) increase for existing town staff.
The employer’s matching contribution to the Local Government Retirement Employment System (LGERS) will increase from 14.35 percent to 15.10 percent for general government employees; the contribution for sworn personnel (police and fire) will increase from 16.10 percent to 17.10 percent, marking the eighth year of a mandated five-year increase.
Vehicle and equipment purchases
On the capital side of the ledger, Tencer proposes to purchase one new vehicle, a replacement vehicle for Haw River’s assistant public works director, whose 2018 Chevy Silverado has 94,000 miles. He estimates that the total cost for the replacement vehicle will cost approximately $45,000, Tencer told the newspaper Tuesday.
Tencer is also proposing to purchase a tractor attachment, estimated at $9,000, for the parks and recreation department that will be used for baseball/softball field maintenance.
Tencer told the council that he’s taking a conservative approach to estimating the town’s sales tax revenue for 2026-27, due to an anticipated decrease in discretionary spending that economists have attributed to inflation.
The North Carolina League of Municipalities is projecting sales tax revenue to increase by 3.10 percent during the upcoming fiscal year, but in erring on the side of caution, Tencer is forecasting a 2 percent increase in sales tax revenue for 2026-27, Tencer said in the interview.
Haw River’s town council is scheduled to hold a public hearing on the proposed budget, and will likely vote to adopt a budget for 2026-27, at its next meeting on at 6:00 p.m. Monday, June 1, Tencer told the newspaper Tuesday.
State law requires local governing boards to adopt a budget by June 30 for next fiscal year.
