Haywood proposes budget without tax increase
After losing roughly $200 million in valuation due to the closing of the Pactiv Evergreen paper mill and the damage wrought by Hurricane Helene, Haywood County Commissioners will entertain a 2025-26 budget that’s thin as can be.
“With the mill closing and the flood and everything else that’s happened economy-wise it’s been a tough budget year,” said Brandon Rogers, vice chair of the commission.
County Manager Bryant Morehead proposed a $111.9 million budget for Fiscal Year 2026 that maintains the current property tax rate of 55 cents per $100 of assessed valuation, despite rising costs in personnel, education, public safety and capital needs. Presented May 19, the budget including department requests had totaled more than $117.4 million.
“In total, we cut about $5.5 million out of their requests to get our recommended budget,” said Will Scarborough, county budget analyst.
Key themes include employee compensation, mounting social service demands, deferred vehicle and equipment needs and a focus on long-term fiscal resilience.
With the county’s total property valuation now exceeding $10.2 billion and a projected tax collection rate of 98.18%, the proposed budget relies on appropriating $10.9 million from fund balance to meet projected expenditures.
Related Items
Following Helene, Big Pillow Brewing crafts its next chapter
This must be the place: ‘All the summer, all of fall, trying to find my little all in all’
Rock for Relief ‘Black Tie-Dye Ball’
Cold Mountain Music Festival
“I think it’s worth noting that we are using nearly $11 million or somewhere around [that] to be able to not increase the tax rate to our citizens with everything Commissioner Rogers just mentioned,” said Commissioner Tommy Long.
Over the past five budgets, typical fund balance appropriations have ranged from $5.2 million to $6.8 million.
Although the tax rate will remain right where it is, five fire districts — including Maggie Valley and Cruso — are requesting increases from 9 cents or less to 10 cents.
Employee costs are a major driver of budget growth. The budget includes a 3% cost-of-living adjustment and a 2% merit increase for county employees, totaling $2.35 million. Retirement contributions to the Local Government Employee Retirement System are also rising — general employees from 13.6% to 14.6%, and law enforcement officers from 15.1% to 16.1%.
Additionally, a one-time $175,000 Christmas bonus is proposed, along with continued longevity and 401(k) contributions. Despite requests from various departments for 22.5 new full-time equivalent positions — including patrol officers, EMS personnel, social workers, and library staff — none were funded in the recommended budget.
The total estimated cost of those unfunded positions, including equipment, was more than $2 million.
The Department of Social Services’ foster care budget will increase by more than $1 million, reflecting heightened need across the county. Overall operating cost increases total $1.17 million, driven in part by inflation and rising service demand.
Funding for local education remains a priority. Haywood County Schools would receive $18.4 million for operations, $1.25 million for capital needs and $2.3 million for debt service.
Haywood Community College is budgeted for $3.5 million in operational funding, $750,000 in capital, and $753,839 for debt.
A total of 18 vehicles — ranging from patrol cars and ambulances to facilities and environmental health trucks — are proposed for purchase at a cost of $1.43 million, up from $1.15 million the previous year. The sheriff’s department alone accounts for $765,842 of that total.
The budget also includes $858,354 in capital replacement projects, including HVAC repairs, roof shingles and new carpet for the library. Jail equipment upgrades, such as ovens and a freezer, along with a new forklift and replacement shed, are also included.
County officials are signaling that even with no tax increase this year, rising salary and benefit obligations — estimated at $471,000 for every 1% increase — will continue to pressure future budgets. Other looming costs include planned renovations to the county library, improvements to the public safety radio system and ongoing debt from the jail expansion.
Haywood County Schools and Haywood Community College each carry significant debt service, budgeted at $5.1 million and $3.68 million, respectively.
The Board of County Commissioners is expected to hold a public hearing on the proposed Fiscal Year 2026 budget at 5:30 p.m. on Monday, May 19. Final adoption is slated for June 2 during the board’s 9 a.m. regular meeting at the Historic Courthouse in Waynesville.
Copies of the recommended budget are available for public inspection at the County Clerk’s office and the main branch of the Haywood County Public Library, as well as online at haywoodcountync.gov.
