Town of Black Mountain approves 1.5 cent property tax increase in 2023-24 budget

$19 million spending plan includes raises for 91 full-time employees and multiple capital expenditures

Fred McCormick
The Valley Echo
June 20, 2023

The Town of Black Mountain approved a 1.5 cent property tax increase, June 14, as the town council voted 5-0 to approve a $19 million budget for 2023-24. Photo by Fred McCormick

An $18.9 million spending plan for the 2023-24 fiscal year will include a 1.5 cent increase in property tax rate for Black Mountain residents to 32.1 cents per $100 of valuation, following a June 14 public hearing held by town officials. 

The budget, up 11.8% over the current year, allows the town to offer residents enhancements to their quality of life while fortifying utilities for the public, Town Manager Josh Harrold told the town council upon presenting his recommended document. The approved plan prioritizes capital outlay and personnel through a 4% cost of living adjustment (COLA) for all 91 of the town’s full-time employees, multiple parks projects, the addition of three police vehicles and upgrades to town-owned buildings and technology.

The new ad valorem rate, which takes effect, Saturday, July 1, with the start of the new fiscal year, marks the first property tax increase within the Town of Black Mountain since 2010, and the second in approximately 30 years. Property owners with a home valued at $400,000 will pay $60 more than they did a year ago, while the town will generate approximately $410,000 in additional revenue.

Elected officials began discussing the measure, May 24, while noting Black Mountain would maintain the lowest tax rate of the six municipalities within Buncombe County at the new rate. The hike was accompanied by an increase in monthly fees for water customers, who will pay an additional 5.9% within town limits, while out-of-town water customers who use an average of 5,000 gallons of water a month will see an increase of 12%, approximately $10.62.

Comprising the majority of the total budget, the $11.1 million general fund increased 16%, as $9 million was allocated to personnel, creating two new positions and expanding two part-time roles. Town employees, who received a 5.75% COLA increase in 2022-23, will earn 4% more this year.

The town added full-time police officer positions for the second straight year, approving two in 2023-24 after funding three in the current fiscal year, as the department’s $2.4 million budget increased by 3%. While staffing expenditures will increase for BMPD, which represents 29% of the town’s general fund, capital outlay is projected to decrease by 65% to $202,000.

The expansion of existing positions within the town includes a full-time manager for the Dr. John Wilson Community Garden and a full-time solid waste reduction specialist in the the sanitation division of the public works department.

A significant increase in recreation services, up 83% over the current fiscal year, will focus on capital projects with the allocation of $683,000 in funds initially received through the American Rescue Plan Act. The town received $2.6 million through ARPA in 2021 and 2022, allocating it to payroll, and creating a budgetary surplus. That money will support a range of projects, including Lake Tomahawk dam repairs and renovations for the Grey Eagle Arena.

The town council, in April, voted unanimously to allocate former ARPA funding for improvements to Cragmont Park, Lake Tomahawk Park and repairs to the Grey Eagle Monument in the 2023-24 budget.

Other capital expenditures in the approved budget focus on fire protection services, including vehicles, thermal imaging cameras, handheld radios and a fire hose for the Black Mountain Fire Department.

The spending plan, balanced by an appropriation of $1.3 million from the town’s unassigned fund balance, also allocates approximately $722,000 for debt services in the upcoming fiscal year.

A water rate analysis, performed in 2021-22, led to the increase in rates, according to Harrold’s budget message.

“Given both the current and potential future projects involving this fund, I believe it to be in our best interest to raise rates that allow us to provide our current levels of service while planning for the future capital projects we have already identified,” Harrold said. “With significant expansions on the horizon for the water fund, it is imperative that we be financially prepared for these capital projects.”

The town will invest $300,000 to replace some of the 72 miles of water lines within its system, which produces and delivers around 187 million gallons per year to nearly 4,000 taps.

While the recommended budget was approved unanimously, Mayor Mike Sobol opened the hearing by expressing his opposition to the increased property tax rate and the COLA proposal. Sobol, in a statement he read to open the public hearing, suggested several cost-cutting measures through various departments.

“I encouraged the town manager and town council to not give an across-the-board 4% COLA, which would mean that a department head who was making approximately $100,000 (per year) before now would get $4,000, while a man fixing water lines, making $30,000, gets $1,200,” the mayor said. “We don’t have a problem with job openings at the top end, rather we have a problem at the entry level. I proposed, and checked with the Institute of Government and received their OK with the idea of awarding 80% of the COLA to those making less than $50,000 (per year), and dividing the remaining 20% among the top-tier employees.”

Town Councilmember Pam King, however, expressed her satisfaction with the budget.

“I really appreciate that our department heads came to us having already made significant cuts to their wish lists,” King said. “I feel like they were mindful, and maybe they don’t live in this town, but they were mindful that it’s a tough year, budget-wise. We tried really hard to include what everybody absolutely needed.”

Vice Mayor Archie Pertiller, Jr. echoed King’s remarks.

“Everybody had a wish list, and nobody got exactly what they asked for,” Pertiller said. “All staff made budget cuts and hard decisions, and I think they did a really good job.”

The town, Councilmember Doug Hay added, has an obligation to meet the needs of its residents.

“We have to make sure we’re not neglecting the needs of the community and not neglecting the services we’ve committed to providing,” he said. “I think for many years we’ve been skirting by, kicking certain investments down the road, and eventually those come to a head. We’re seeing that now in some of our infrastructure, vehicles and personnel.”