BY DONNA SWICEGOOD
Statesville City Manager Ron Smith presented the city’s proposed budget for fiscal year 2025-2026 to the City Council on Monday evening.
The spending plan calls for maintaining the property tax rate at 51 cents per $100 valuation. If approved by the City Council, the budget also includes 9 percent increases in water and sewer rates.
Smith said the proposed budget of $157,025,153 would provide a 3 percent cost-of-living increase for city employees.
Council members will hold a budget workshop on May 28 and May 29, if needed. The budget will be presented to council for approval on either June 2 or June 16.
Rezoning requests receives first approval
Council members approved the first reading of a request to rezone 32 acres for a 85 to 95 home development off Peachtree Road near Mocksville Highway.
Planning Director Sherry Ashley said developers, McAdams and NVR/Ryan Homes, met with residents twice last year to discuss their concerns, which have been addressed in their request to rezone the property to R-8.
Eddie Moore, representing McAdams, said the Peachtree subdivision will include homes of between 1,680 square feet to and just under 2,500 square feet. There will be abundant open space in the development, he said.
Contract awarded for sinkhole repair
The council also approved a bid of $373,784.43 from Country Boy Landscaping for repairs of the sinkhole that has closed the intersection of Front and Tradd streets for more than two months. Three other bids ranged from $594,000 to more than $1 million.
Mayor’s Cup awarded

Mayor Costi Kutteh presented the 2024 Mayor’s Cup to Stamey Holland III, the Wilson family, Statesville Historical Collection and the Preservation Statesville Board for the renovation and beautification work at 117 S. Center Street. The former Woolworth’s building was renovated to house the Statesville Historical Collection items curated by Steve Hill. Vicky and Tom Wilson, Holland and Hill accepted the recognition.
The award is presented by the Statesville Appearance Commission.
“It’s a real honor and privilege to present this award,” Kutteh said.
He said the award is largely because of the vision of the late Jim Wilson, who wanted to find a place for Hill’s collection.
“Jimmy and Vicky (Wilson) had the idea that Steve Hill needed a place to memorialize, I guess, his collection,” the mayor added.
Hill’s recommendation led them to the building owned by Stamey Holland.
“This is as good an example of a community partnership I’ve ever seen,” Kutteh said.
OTHER BUSINESS
In other business, the council:
♦ Approved the Statesville Police Department’s request to accept a grant from the Bureau of Justice Assistance for $23,819 and approved a budget amendment for that amount.
♦ Approved the second reading of an ordinance to annex Barkley Springs Phase 2 along Barkley Road.
♦ Approved a resolution of intent to permanently close a portion of Jefferson and Jackson streets between Jackson Street and South Elm Street and set a public hearing for June 2.
♦ Approved the second reading of an ordinance to demolish a structure at 509 to 517 S. Center Street. The structure has been deemed a safety hazard.
♦ Approved a quitclaim on a portion of 657 S. Green Street contingent upon removal of a structure and driveway at the Green Street Cemetery.
♦ Approved a resolution of intent to adopt an ordinance for the Charter of the City of Statesville to change the election method for City Council to nonpartisan plurality and ratification of an ordinance for electing at-large seats to four-year terms on a staggered basis. A public hearing will be held on May 19.
PROCLAMATIONS
Mayor Kutteh also presented the Freedom Fund proclamation, Leave a Legacy Month proclamation, Mental Health Awareness Month proclamation and Municipal Clerk Week proclamation.