BY DEBBIE PAGE
Troutman Town Manager Justin Longino led the Town Council through the town’s budget priorities for each department and gathered elected input on Wednesday as he and Finance Director Gina Merrell continue to put the finishing touches on the town’s spending plan for fiscal year 2026-2027. The final draft of the budget will be presented to the council and public at the May 14 council meeting, with final approval coming on June 11 after public and council comment.
Longino said the budget will reflect the town’s core mission: “delivering reliable, high-quality services to our residents every day as a service-first organization.” The staff’s goal is to create a conservative, balanced budget that meets statutory requirements with a focus on long-term financial stewardship, he said.
The budget document reflects the priorities and values of the community and its government, he said, with the aim of maintaining financial stability that leads to the town’s future success by aligning town resources with the priorities discussed at the council’s strategic planning retreat in February.
GENERAL FUND EXPENTURES AND REVENUES
Longino provided an overview of FY 27 projected general fund expenditures, which earmarks 28 percent for public safety, 22 percent for general government functions, 16 percent for capital projects, 11 percent for public works, 10 percent for solid waste services, 8 percent on debt service, and 7 percent on recreation.
The town manager projected FY27 general fund revenues to be $10,272,635 in property tax collection (an increase of $1,060,326 over this year), $2,588,300 in sales and utility taxes, $1,350,000 in fees and services, $734,530 in intergovernmental funding, $202,000 in investment income, and $175,000 in real property income.
The proposed budget will leave Troutman’s ad valorem tax rate at 50 cents per $100 of the property’s assessed value. Longino said that Iredell County has projected a higher valuation of property for FY27, but he and Merrell elected to stay conservative with their projected revenue estimates.
The town collected $9,212,309 in ad valorem taxes in FY26 (100 percent collection rate).
This budget year, the town has collected $1,579,626 in sales and utility taxes through March 31 (63 percent) of the expected $2,511,300 for FY26. Longino explained collections of taxes through the N.C. Department of Revenue are often two months behind, so full collection rates will not be known until closer to the end of fiscal year.
Though the town collected more than 100 percent of expected sales and utility taxes over the last two budget years, Longino said the FY27 proposed budget remains only slightly higher because of economic uncertainties.
Fees for town services are established by the council annually to recover costs and fund services from the user rather than the general taxpayer. The town has collected $957,223.33 in fees through March 31 (86 percent of the FY26 projected $1,112,340).
This category contains Parks and Recreation Department fees for sports and events, zoning and planning review fees, passport fees, notary fees, and other smaller fees for town services.
FY 27 Projected Parks and Recreation fees are expected to increase due to higher demand over the last few years. Zoning and permit review fees were either lower or remained the same because of the town’s residential development moratorium.
Garbage fees for customers will rise 5 percent in FY27 due to a service cost increase.
Intergovernmental funding revenue comes for a variety of reasons from other government agencies, either local or at the state level. This money includes the reimbursement from the Iredell-Statesville Schools for 10 months of costs for each School Resource Officer, Powell Bill funds to help cover costs of maintaining and repairing eligible streets, traffic impact funding for development planning, and quarterly profit distribution from Troutman ABC Store sales.
Investment and real property revenue comes from the interest earned on cash investments and accounts and rental income from the town’s real estate holdings. Longino believes the town’s investment income will continue to grow, and changes are underway to maximize this source of revenue. Rental income is projected to remain steady for FY27.
BUDGET ASSUMPTIONS
The town manager said several budget increases were included in the FY budget to cover rising costs, including a 3 percent cost of living adjustment for all employees, an assumed 3 percent merit increase for all employees, a 6 percent increase in health insurance costs, a $72 annual increase in dental insurance costs to increase access for employees, and new retirement rates (set by the state) of 15.1% for general employees (previously 14.44 percent) and 17.1% for law enforcement officers (previously 16 percent).
The total average cost per employee, including a $72,521.78 average salary and all benefits (401K contributions, NC retirement contributions, insurance (medical, dental, vision, short-term disability, and life), and various leave time (vacation, longevity, wellness, personal, care, sick) equates to $120,740.42 annually.
Current employees by department are five in administration, along with 27 in police, six in parks and recreation, four in planning, 5.9 in streets, five in utility administration, and eight in public works.
To accommodate a growing town and population, Longino is requesting six new positions, including a community engagement specialist, accounting tech, management analyst, special events and administration support specialist, a police officer, and a public works operations manager.
GENERAL FUND BUDGET
Governing Body
The Governing Body provides operational funding for the Town Council, Town Attorney, and for special town events. The FY27 budget ($193,470) includes a 3 percent cost of living adjustment for the Mayor and Town Council.
An audit contract amount of $30,000 has been moved to Administration Department, accounting for the 11 percent funding decrease over this fiscal year ($217,399).
Contracted services account for 46 percent of proposed expenditures, with 32 percent for personnel, 17 percent for operating expenses, and 5 percent for training and travel.
Administration
The Administration Department manages the day-to-day operations, planning, and coordination of the town services and policies. This department includes the town manager, town clerk, and Human Resources, and Finance departments.
The FY27 requested funding ($1,512,074) is up 42 percent over this year’s budget because of plans to rent modular offices for staff during Town Hall renovations as well as the purchase of a new staff evaluation and performance management system for HR, funding for a grant consultant, and a $30,000 increase in the tax collection services contract with Iredell County.
Seventy-one percent of this budget request covers personnel, with 15 percent for contracted services, 12 percent for operating systems, and 2 percent for travel and training.
Passport Office
The passport office budget request dropped 28 percent over this year’s budget because of lower than expected costs and underspending over the past two budget years. The FY27 budget includes training for a third town staff member to become trained in passport application by December.
Sixty-two percent of the department budget covers personnel, with 20 percent for operating expenses, 10 percent for travel and training, and 8 percent for contracted services.
Information Technology
The requested information technology department FY27 funding ($272,300) covers leasing costs of printers and copiers, funding for Council Chamber technology and broadcasting improvements, and town-issued employee cell phones.
General government expenses account for 45 percent of the town’s IT spending, with 31 percent for public safety, 13 percent for equipment leasing, 8 percent for Parks and Recreation, 2 percent for operating expenses, and 1 percent for public works.
Planning
The Planning Department oversees land use, development, and mapping support to Troutman’s strategic growth and planning efforts. The requested $1,019,295 for FY27 (7 percent decrease) includes continued funding for the Comprehensive Land Use Plan.
The reduction in costs is associated with permitting moving to the Iredell County software system. Estimated revenue coming from permits and fees collected for zoning and planning are expected to be flat, with the budgeted revenue at no change from FY26.
Forty-nine percent of the department’s budget request will cover personnel costs, with 41 percent for professional services, 7 percent for special projects, 2 percent for operating expenses, and 1 percent for travel and training.
Public Safety
The police department’s FY27 $3,876,126 funding request (a 6 percent increase) does not include any new School Resource Officer positions. It includes money for the Meridian Rapid Defense system for public events, additional radios, and Axon body cameras as well as three new police vehicles and the required upfit to replace aged-out vehicles.
Seventy-six percent of the funding is earmarked for personnel costs, with 10 percent for equipment, 8 percent for operating expenses, 5 percent for contracted services, and 1 percent for travel and training.
Public Works – Street Division
The streets division of the Public Works Department $1,983,188 budget request has increases (up 36 percent) that relate to the proper cost allocation of staffing throughout Public Works, an increase in cost of utilities for streetlights due to increases from Duke Power, and $1,200,000 budgeted for patching and paving.
Sixty-five percent of the division’s budget will go to contracted services (mostly paving), 28 percent for personnel, and 7 percent for operating expenses.
Parks and Recreation
The Parks and Recreation Department’s FY27 budget request ($1,258,197) is up 25 percent over FY26, including funding for a new Parks Master Plan ($150,000), a new Special Events and Administrative Support Specialist position, and specific line items for department costs related to new youth athletics programs, athletic uniforms, and referees and umpires.
Some of these costs are offset by an expected $150,000 in program and athletic registrations.
The new budget also raises spending on special events by 25 percent and adds $3,000 for additional upgrades to Morrison and Georgie Street parks.
Personnel accounts for 59 percent of the department’s budget, with contracted services at 15 percent, operating expenses at 10 percent, special events and athletics at 6 percent each, and park upgrades at 4 percent.
Sanitation
Troutman provides solid waste and recycling disposal, along with leaf and limb pickup, through external contractors. The FY27 $1,137,494 budget request is up 3 percent. This amount includes 5 percent increase in Garbage/Recycling rates per the town’s contract with WastePro.
The current rate for Troutman residents is $18.52 per month for one garbage bin and one recycling bin, with extra charges incurred for additional bins. Leaf and limb pickup and street sweeping are provided by the town.
The garbage/recycling rates will be adjusted by the council in June to $20.46 to reflect the increase in costs to break even on the service.
Debt Service
The town’s debt service covers repayment of interest and principal on a debt for a specific period. The FY27 debt service budget request of $1,239,029 is a 23 percent increase over last year, covering payments on the 2018 street improvement project, two Wagner Street and three Eastway Drive properties, and the Keystone property, which is currently on the market.
No debt exists on the Dollar General or Liat properties, which were purchased with cash.
Reserve Fund Transfers
Proposed annual FY27 fund transfers to capital reserve funds include $500,000 to the ESC Park Fund (a $175,000 increase) to cover the debt service payment on the pickleball and basketball courts and the park lighting project.
The Town Hall fund would get $1,275,000, bringing the balance to $4,015,070. Longino said this fund will help cover the Town Hall expansion project, adding that the sale of the Keystone property would also free up funds for this as well.
Economic Development was slated for $70,000 transfer (current balance $365,070) and industrial recruitment a $100,000 transfer (current balance $80,000). However, Mayor Teross Young suggested instead using some of these funds to pay off debt early on town properties.
The Greenway Fund is slated for a $100,000 boost (current balance $120,042), and the Pocket Park Fund would receive a $60,000 contribution. Longino said some of this money might go toward a pocket park area next to Wagner Street Bistro.
OTHER BUDGET CONSIDERATIONS
Proposed downtown development funds include funding a community engagement specialist ($109,045). Some of the funding for this position could come from occupancy tax funds. The proposed budget also includes further downtown enhancements ($250,000).
The council also discussed the creation of a defined Municipal Service District for which it can set a specific tax, the proceeds from which can only be used in this area.
FY27 CAPITAL PROJECTS
Street Improvements
Longino said that with the help from the town’s engineering firm, the town has estimates for all the roads slated for paving this fiscal year and is in the process of getting bids for the $1,045,060 estimated cost.
He also noted that the Public Works Department is about 90 percent complete with all new street town-maintained street signs displaying the town logo.
Park Lighting
The ESC Park lighting project will begin installation in June, with the ballfields expected to be complete in September in time for fall sports with the entirety of park lighting finished by November.
The town is taking out a $2.1 million loan to complete the project.
Downtown Sidewalks
The right-of-way acquisition estimate is $500,023 for the Talley, Rumple, and Wagner street sidewalk project, significantly higher than the original $129,000 estimate. The town must obtain right-of-way from over 40 property owners.
Town Planner Andrew Ventresca hopes that some property owners will donate the right-of-way on their property for this improvement, which would lower the project ’s costs.
The project is currently waiting for NCDOT to give authorization to move forward with right-of-way acquisition. The town is receiving $129,000 for property acquisition and $1 million for construction from the Charlotte Regional Transportation Planning Organization (CRTPO).
The town is looking into borrowing from the construction fund to complete right-of-way purchases and then asking for additional construction funds from CRPTO’s discretionary funds. Money for the project, which began in 2016, is coming from a federal highway grant (65 percent) and town funds (35 percent).
Remaining construction and engineering costs on the project include $156,319 for engineering and $1,623,000 in construction. Design and engineering have been ongoing in conjunction with the NCDOT.
Richardson Greenway
The Richardson Greenway capital project, which will extend the greenway to Byers Road, will require the town to acquire right-of-way from 12 property owners. The project is waiting for some NCDOT approvals and estimates for property acquisition for the $2,295,406 project.
This project is being funded by a federal highway grant and town funds on an 80/20 split.
WATER AND SEWER FUND BUDGET
The Water and Sewer Fund is a separate entity that functions independently from the town’s budget. The fund’s revenue is expected to reach $8,495,583 in FY27. Longino projects the Water and Sewer Fund revenues for FY27 to include $4,117,152 in water fees and revenues, $4,178,431 in sewer fees and revenue, and $200,000 in investment income and miscellaneous revenue.
Utility Administration
The utility administration team provides customer service and account management for the town’s utility services and oversees the administration of the water and wastewater systems.
Longino is lowering the utility administration budget request by 19 percent because the streets division is being separated out and the fee for governmental lobbying is being spilt with the general fund.
The utility administrative $778,869 budget request includes 78 percent for personnel, 12 percent for operating expenses, 9 percent for contracted services, and 1 percent for training and travel.
Utilities
The Public Works Department provides the services required to ensure a sustainable community to meet current and future water and wastewater systems challenges.
The proposed $5,276,538 budget request Includes cost allocation for staff and adding a full-time Public Works operations manager, a 2.5 percent increase in water purchase rates, and new equipment.
The water fee increase will be passed on to customers in the council’s June schedule of fees adjustments.
The budget allocations include 54 percent for water and sewer capacity purchases, 17 percent for personnel, 11 percent for operating expenses, 7 percent for equipment, 6 percent for contracted services, and 5 percent for contingencies.
Debt Service
The utility fund debt service FY 27 allocation is $256,705, covering payments on Mill Village sewer improvements, sewer and water tank projects, Energy United project, and the 2022 Sewer Rehabilitation.
Capital Projects
2022 Wastewater Capacity Improvements
The 2022 Wastewater Capacity Improvement Project includes removing the Quail Haven pump station and running gravity sewer to the Streamwood pump station. This project also includes removing Westmoreland pump station and building a larger station with more capacity.
This $4,178,290 project should be wrapping up in fall of 2026.
2022 Sewer Collection Project
The sewer collection project is wrapping up soon and consisted of smoke testing and scoping the sewer lines, repairing issues where inflow and infiltration was present, raising and repairing manholes, and installing cured in place pipe.
This $2,820,638 project will help prevent sanitary spills and overflows and prevent rainwater from entering the town’s sewer systems.
Shinn Farms Regional Pump Station
The town has partnered with Shinn Farms developers to upgrade this primary pump station for the Shinn Farm development to a regional facility. The station is designed to flow to the Wiggins Road Pump Station owned by Mooresville. It will receive flow from the Westmoreland Pump Station, where town wastewater currently flows, and then pump it to the South Iredell Pump Station.
The $2,230,328 project is being funded by water and sewer fund balance funds.
Wastewater Transmission Project
This project is in the surveying stage and will be the final stage of getting Troutman’s sewer to the Wiggins Road pump station in Mooresville. Engineering costs of $1,677,198 are coming from the water and sewer fund balance. Construction costs will be estimated once engineering is complete.