Responsible Spending Plan Balances Low Tax Rate With Quality Services and Important Capital Projects

The Board of Commissioners adopted the Town's FY 07-08 budget at its June 12 regular meeting after several weeks of review and deliberation. The new budget takes effect on July 1, 2007. The total FY 07-08 budget is $10.26 million, with the General Fund making up the largest portion of this amount - $7.38 million.

The FY 07-08 budget includes funding to continue the Town's quality services and proceed with important capital projects that will serve our customers well in future years. The Board placed a priority on maintaining a low property tax rate, investing in important public safety building projects, continuing efforts to resolve storm water issues in the Coast Guard Road area, and maintaining adequate financial reserves.

The FY 07-08 General Fund tax rate is 6.7 cents per $100 of assessed value. The new rate is a decrease from the current tax rate of 15.5 cents, and is due to the recent revaluation of property by the Carteret County Tax Office. The 6.7 cent rate does, however, represent a 1-cent tax rate increase over the revenue-neutral rate of 5.7 cents. The tax rate increase represents an additional annual tax bill of $58 for the average taxpayer in Emerald Isle. The Town's total assessed valuation, after the recent revaluation, is now in excess of $4.25 billion. The 1-cent increase on the Town's tax rate will generate approximately an additional $425,000.

Town staff and the Board of Commissioners worked hard to limit the tax rate to the lowest rate possible without impeding progress on important items for our customers. Although we are not pleased to have even a minimal tax rate increase, we are proud that the FY 07-08 General Fund tax rate is still lower than the adjusted tax rate in FY 02-03. Although revaluation will impact individual tax bills in different ways, the average taxpayer in Emerald Isle will still be paying less Town property taxes in FY 07-08 than they did 5 years ago! Additionally, Emerald Isle's tax rate is among the lowest of all beach towns in North Carolina.

The special district tax rates for the Town's beach nourishment projects were established at the revenue-neutral tax rates, as promised to the voters prior to the bond referendum for these projects. The oceanfront district tax rate is 16.2 cents per $100 of assessed value (down from 48 cents), and the non-oceanfront rate is 1.1 cent (down from 3 cents). FY 07-08 is the 6th year of these special district taxes. FY 10-11 is the final year of special district taxes associated with the Town's beach nourishment bond referendum held in 2002.

The Town's annual solid waste fee was established at $180 per year, a $10 increase over the current fee. This fee equates to $15 per month for the Town's solid waste services. Although the monthly cost for these services is comparable to other area towns, Emerald Isle offers the highest service levels by any municipality in our area.

As noted above, the FY 07-08 budget invests in several beneficial capital projects, including the following:

- $240,000 for the renovation and expansion of the Emerald Isle Police Department,

- $350,000 (to be added to other project funds) for the construction of a new EMS Station adjacent to Fire Station 1,

- $250,000 for design and permitting activities to construct two additional storm water pumps in Spinnakers Reach,

- $145,000 (primarily anticipated grant funds) for the construction of a soundside pier and bathhouse at the new McLean Park located next to Chapel By The Sea,

- $75,000 to replace aging and deteriorating walkways at Cedar Tree Lane and Santa Maria Drive.

The budget also includes funding for several other smaller projects designed to enhance Town services and improve the quality of life for our customers.

Town staff and the Board of Commissioners look forward to a productive new fiscal year, and are eager to serve you!