Council to discuss nearly 42 percent tax rate increase in Leland

LELAND, NC (WWAY) — The Town of Leland could see an almost 42 percent tax rate increase in the next budget.

Mayor Brenda Bozeman said that is because the town is facing the possibility of $1.1 million in revenue loss.

Many people like Charles Ibbs and David Head moved to Leland from other parts of the country.

“The east coast is way better than the west coast,” Ibbs said.

“My wife and I moved down here five years ago and the property tax is considerably lower than it was up north,” Head said.

That tax rate could soon change.

In a town newsletter, Bozeman said there is a potential estimated revenue loss of $511,000, because of the state Senate Bill 126 allowing redistribution of sales tax money away from Brunswick County. She said there is an additional $119,000 revenue loss in historical fire district revenue, because of redistricting and the County discontinuing their historical support of the emergency services provided by the fire department.

Bozeman also said the budget for fiscal year 2017-2018 includes the new governmental fire/rescue department with eight new fire/paramedic positions for a total of  28 full-time positions and 38 part-time positions, two new full-time patrol police officer positions, six full-time departmental positions, one full-time utility position, and one part-time departmental position.

Bozeman said the new staff, excluding the fire department, totals $370k additional expenses. The Council also has included a roadway improvement project costing $150k. These items total to $1.13 million.

“These are certain things in the community that we need and make our community thrive,” Head said.

Bozeman said Council is discussing a tax rate increase from about 18 cents to 26.0 cents. For the average house at $212,000 that would mean $162 more a year.

As a business owner and a homeowner Head said he gets it.

“Everybody’s got to play their part, so I think it’s no problem personally,” Head said.

Meanwhile, Ibbs said the town should look at other revenue sources.

“You try to bring in more revenue by building up your city, which we’re trying to do, and they’re doing a good job, but you know, don’t hurt the middle class people by raising up their taxes,” Ibbs said.

Bozeman said nothing will be final until the very last day the budget is due.

The meeting tonight is the official public hearing for the budget. There is a tentative meeting set for June 8 if Council wants to have additional discussion. The regular agenda meeting is June 12 and the regular meeting is June 15. Town Manager David Hollis said Council could call additional special meetings up to and until June 30. He said the budget must be approved on or before June 30.

Bozeman said she has never been for tax increases, but sometimes you have no other choice.

The official budget public hearing is tonight at 6:00 p.m. at town hall.