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BY DONNA SWICEGOOD

City Manager Ron Smith presented the proposed budget for fiscal year 2026-2027 to the Statesville City Council on Monday evening.

The spending plan maintains the current property tax rate of 51 cents per $100 valuation.

The $168 million budget includes a 3 percent cost-of-living increase for city employees. The budget also includes $1.5 million to cover the salaries and benefits for 15 new firefighters hired this year to staff a new station on Gaither Road. Station 5 will be located in a renovated house already on the property.

Providing a pay increase for city employees was one of the top priorities identified by the council during their annual budget retreat earlier this year.

A public hearing is scheduled for June 1 on the 2026-2027 budget.

While the property tax rate remains unchanged from the current year, a 12 percent rate hike for water and sewer service are included in the budget. Smith said this increase is part of a long-range plan to help fund needed upgrades and expansions to current facilities. The increase began this year and will continue for a total of 10 years.

Smith told council that new residential development is expected to bring in an increase in property tax revenues.

In the coming year, he told council, there is a need to set aside more money for street paving. The proposed budget raises the amount set aside from $200,000 to $500,000.

Also included in the 2026-2027 budget is a new electric substation in South Statesville and the addition of four new staff positions — two in finance, a full-time attorney and a new position in the police department.

Sewer Extension

A proposal to amend a reimbursement agreement between the city and a developer for expansion of the Third Creek Sewer Extension drew concerns from some council members.

Bill Vaughan, director of public utilities, said the agreement between the city and Prestige Land and Site Works LLC concerns a development initially proposed in 2024.

The Briarwood Sewer Extension involves some $3 million designated to be paid by the State of North Carolina as part of an economic development program.

Council member Lisa Pearson said she was concerned that the city was committing to fund something without a clear idea of when the state would provide that reimbursement.

“The state has not decided on their budget,” she said.

Pearson said she was concerned the city could be left financially responsible.

The cost of the project could reach $10 million, Smith said. Bids are scheduled to be opened on Friday.

He explained the funds outside of the reimbursement are the responsibility of the developer and that the city would not be financially liable.

Council member Doris Allison asked what would the city’s responsibility be if the developer pulled out. Smith said the funds from the state are for economic development and could be redirected to another project.

Council member Trey Robertson said the developer put down a surety bond. “It’s not the city of Statesville’s money,” he said.

Vaughan agreed. “Prestige is on the hook,” he said.

Council approved the revised reimbursement agreement in a unanimous vote.

Rezoning, annexation get first approval

Council also approved first readings of rezoning and annexation requests that would bring a Quik Trip convenience store to the intersection of Interstate 77 and Turnersburg Highway.

Planner Joseph Campbell told council that the property is 24 acres and includes six parcels. One of those parcels currently houses an Arby’s restaurant and that will remain on the property, he said.

The 7,300-square-foot convenience store is the second part of the development with the rest of the property set aside for future development.

The rezoning is to change the property from Iredell County GB (General Business) Conditional Use District to Statesville B-4 Conditional Zoning District.

The annexation is non-contiguous to the city and some services cannot be provided currently, Campbell said. Electric services will be provided by Duke Energy and water by Iredell Water Corporation, he said. The city will provide sewer but that will not be available until January of 2027, he said.

Council approved the first readings of the requests by a unanimous vote. A second reading of the two requests will be held at a future meeting. Those are usually part of the consent agenda, which is approved in one motion unless a council member asks that an item be removed for further discussion.

As part of Monday’s consent agenda, council approved ordinances to demolish houses at 409 Monroe Street and 1115 Old Charlotte Road due to unsafe and dangerous conditions.

OTHER BUSINESS

In other business:

♦ Council also approved two rezoning requests for two apartment developments. One is for Killington Reserve Apartments on Buffalo Shoals Road and the other for Ochre Hill Apartments on James Farm Road.

♦ Council also directed the city clerk to investigate petitions for annexation for 1006 Wall Street. and 237 Third Creek Road. A public hearing on each of these requests is planned for June 1.

♦ Mayor Doug Hendrix presented proclamations recognizing ALS Awareness Month and National Police Week.