Johnston County Manager Presents Proposed FY 2025-2026 Budget Summary

For Immediate Release:  May 19, 2025

Smithfield, N.C. - Johnston County Manager Rick Hester presented the following budget summary to the Board of Commissioners during the May 19, 2025 Board meeting:

Johnston County's proposed Fiscal Year 2025-2026 General Fund budget is presented at $402 million with a three cent property tax rate reduction from 67 cents per $100 value to 64 cents. Since Fiscal Year 2019-2020, the property tax rate has been reduced 11 cents (78 cents to 67 cents). This proposed budget reflects the Board of Commissioners' six priorities, which are public safety, educational funding, infrastructure, land use, County employees and financial stewardship. Please note, there will likely be adjustments needed for the proposed budget through the June budget meetings. As an example, formal appeals for the tax revaluation will possibly be ongoing throughout the Board’s budget deliberations. That, in itself, may be reason to consider this as a two year review by the Board. The ad valorem revenue projections are conservative.

At this proposed tax rate, revenues will greatly exceed expenditures. That is not to simply bank taxpayer funds. There are large education related capital projects that have been approved by the voters that have not yet been reflected in annual budgets. There has been discussion of funding the proposed Clayton High School project (the design process is ongoing). The actual construction aspect of the project has not yet been formally approved as it is subject to consideration by the Board of Commissioners as well as review and approval by the North Carolina Local Government Commission. The Board has discussed the construction of new county government and court related facilities. Planning for future debt service for those selected projects will need to occur. Maintaining the County’s AAA bond rating is important. The day-to-day operational funding for delivering critical county government services is also very important. Continuing to maintain and recruit employees in a highly competitive environment is a priority. 

Overall, the proposed General Fund budget includes expenditures for county government operations, debt service obligations, funding for our education partners (JCPS and JCC) and nonprofit funding. Debt service for the General Fund is up 14%. With that said, due to the County’s strong bond ratings, there is a one time $9 million bond sale premium to assist with paying debt service for just this upcoming budget year. This is one of the positive results from the recent $100 million bond referendum sale from the 2022 voter approved bond referendum. This additional premium reflects how the County is viewed in the financial markets. Again, this bond premium is only for one year.  

Recommended Funding for Education Partners

We enjoy a great working relationship with our education partners, Johnston County Public Schools (JCPS) and Johnston Community College (JCC). Recommended preliminary allocations for supplemental current expense plus capital outlay follow. Please note these recommendations may change prior to the budget meetings based on additional information between now and June’s budget meetings.

Proposed New Positions (with October 2025, and beyond, start dates)

General Fund:

• Emergency Services - 16 positions 
• Social Services - 12 positions, plus some reclassifications (Some positions receive partial reimbursement)  
• Parks, Greenways and Open Space - Two full-time positions and two part-time positions
• Public Health - Three positions
• 911 Communications - Two positions
• Tax Office - Two positions
• Public Information Office - One position
• Legal - One position
• Register of Deeds - One position 
• Soil and Water Conservation - One position
• Building Inspections - One position 

*In addition to the positions noted above, once the new Wilson’s Mills fire station is built, we would respectfully ask for consideration to hire the 8 additional EMS staff that will be needed there. 

Enterprise Funds  

There are two full time positions requested in the Public Utilities Enterprise Fund.&nbsp

Proposed Fee Increases in the Enterprise Funds

Public Utilities - Please see the Public Utilities memo in the supporting documents section of the proposed budget. 

Solid Waste - Increase yard waste from $20/ton to $25/ton and move the minimum charge from $8 to $10 with an effective date of August 1, 2025. 

Employee Compensation

Funds are included for a pay adjustment in July with the potential of a performance pay adjustment later in the fiscal year. The County Manager's recommendation is being finalized and will be presented during the upcoming budget meetings.  Funds are also budgeted for alternate year pay review adjustments.

Countywide Fire Tax Rate

The Countywide fire tax rate will need to be established. It is currently 14 cents per $100 valuation.  

Budget-Related Board Meetings

As a reminder, budget meetings are open for public comment and tentatively scheduled for:

*Monday, June 2 at 10:00 a.m. (Public Hearing)

*Monday, June 9 at 6:00 p.m. 

*Monday, June 16 at 6:00 p.m. (Proposed Budget Adoption)

I look forward to sharing more details about the proposed budget at the June 2, 2025 public hearing. I may have some amendments to present that day as well, as projections can sometimes change quickly. A special thanks goes to Chad McLamb, Jocelyn Andrews, Jennifer Slusser, and the County-wide team for their work on this budget.  It has truly been a team effort. For more information visit www.johnstonnc.gov/budget.

Sincerely,

Rick J. Hester

County Manager