BY MIKE FUHRMAN

Iredell County Manager Beth Milton presented a proposed $354.1 million budget for the upcoming year to the Board of Commissioners during Tuesday’s board meeting.

The spending plan, which maintains the existing property tax rate and the all-county fire tax rate, is based on a countywide property valuation of $45.5 billion and a collection rate of 99.27 percent.

“This 2026-27 fiscal year budget is our best effort to plan for the worst and hope for the best,” Milton said. “It includes cost-cutting measures to absorb some known unfunded mandates, but we know more are coming. This shift is only the beginning, so we will continue to do the best we can while trying to maintain a tax rate in the lower third in the state.”

At 50 cents per $100 valuation, Iredell County’s current tax rate is the 28th lowest among North Carolina’s 100 counties. The state average is 58.34 cents per $100 valuation.

While preparing the budget, the county’s finance team projected property tax revenues to grow by a modest 1.6 percent in 2026-2027.

Milton told commissioners that the mandates placed on county government by state and federal governments without adequate funding from those entities is eroding the county’s “ability to successfully serve” residents.

“Over the past few years, we have experienced dramatic shifts in policy, funding, and support at both the federal and state level,” she said. “The landscape of local government is on the brink of substantial change.”

The county manager pointed to legislation approved earlier this year by the N.C. General Assembly — which will likely be placed on the November ballot for voter approval — that would limit counties’ ability to raise additional funds through property taxes. Combined with a reduction in state and federal funding to local governments, these property tax “caps” could force county and municipal governments to reduce services.

Meanwhile, state lawmakers have not acted on calls for developer impact fees, which could generate funds for school construction and infrastructure improvements. Requests for limited tax relief for seniors and disabled veterans have also not generated traction in Raleigh.

Commissioners are scheduled to meet on Wednesday and Thursday to discuss the proposed budget in more detail.

BUDGET HIGHLIGHTS

♦ Funding for Iredell-Statesville Schools, the Mooresville Graded School District and Mitchell Community College totals $125.6 million, which includes operating expenses and capital expenses. This is the county’s largest expenditure and accounts for roughly 38 percent of the budget. Per pupil funding will increase from $2,354 to $2,392.

♦ Total allocations to the Sheriff’s Office will eclipse $53.6 million, which includes funding for enforcement and the county detention center. This equates to 17 percent of the budget. When compared to the other 99 counties in the state, Iredell ranked 12th in total public school allocations as a percentage of the general fund budget for fiscal year 2025-2026, according to the N.C. Association of County Commissioners.

♦ The budget includes a total of $45 million for the Health Department and Social Services, which equates to 8 percent of the budget.

♦ The budget includes $22.2 million for capital projects, a decrease of more than $1.5 million from the current fiscal year. Some $11.7 million is earmarked for the courthouse expansion, which officials believe will reduce the backlog in criminal cases and potentially reduce the number of inmates in the detention center, which has reached capacity. Other major capital expenses include $3.6 million for ambulance replacements and nearly $1.8 million for new emergency radio dispatch consoles for the 911 Communications Center.

♦ Health insurance costs for county employees are expected to increase by $2.5 million. An additional $1.9 million is earmarked for a 3 percent increase for all employees and reclassifications, promotions and certifications.

♦ The proposed budget does not include any funding for new positions and, in fact, eliminates 28 positions, including 19 in the Department of Social Services, four each in Solid Waste and ICATS, and one in General Government.

♦ The all-county fire tax rate would remain 9 cents per $100 valuation, which will generate $23.5 million. Commissioners will discuss how those funds will be allocated.

♦ As of June 30, the county is expected to have an unassigned fund balance of $118 million, which represents about four months of operating expenses.