No tax increase in proposed Rockingham budget

ROCKINGHAM — There’s no tax increase in the proposed City of Rockingham budget for fiscal year 2021-2022, following a year in which the city, like several other municipalities in the county, took the unprecedented step of imposing a $0.10 tax increase to cover the significant loss of sales tax revenue caused by the county’s change to an ad valorem sales tax distribution method.

In order to avoid the tax rate increase, the city is instead increasing residential and commercial fees by $3.00 per month. There’s a proposed 3% water and sewer rate increase as well. The last water and sewer rate increase was in 2013-2014. The minimum monthly water, sewer and garbage bill will be $34.65. Rockingham’s water and sewer bills will remain substantially lower than the state average.

City Manager Monty Crump said the budget is “short, sweet and to the point,” but that it also has “no frills.”

“The two rate increases that are in here are really necessitated by the fact that we’re on the LGC (Local Government Commission) watch list,” Crump said.

The city’s revenues remained stable, leaving the only outlier as COVID-19 and the county’s change to the sales tax distribution method, which will remain ad valorem for at least another year since the passing of the April 30 deadline to change back to per capita.

“Remarkably, most of the City’s revenue sources have remained stable meaning the only need to raise taxes last year and fees this year is due to Richmond County’s decision to change sales tax distribution method,” reads the proposed budget.

Crump expressed discontent with the roughly $3 million a year that the County is seeing in new sales tax revenue thanks to changing to ad valorem.

“Quite frankly, I think all the tax payers in Richmond County deserve a significant tax cut next year by the Richmond County Board of Commissioners,” Crump said.

Mayor Steve Morris concluded the discussion by saying it’s not easy to vote for increased fees, but that “we need to do it.”

A budget work session and planning retreat is set for May 19. There will be a public hearing for the proposed budget at the Council’s next meeting on June 8.

House set to be demolished; rezoning approved

City Council approved a demolition ordinance for a dilapidated home at 36 4th Avenue Pee Dee and also approved a rezoning request from Hudson Paving Inc. for 4.8 acres located at 195 and 201 US Highway 74 Business West.

The rezoning was not consistent with the future land use map, but was consistent with a stated objective in the plan to allow existing businesses to grow and expand.

“I think the idea of business expansion is a critical justification for what we’re doing versus the limited potential of commercial development that could have been done there,” Councilman Bennett Deane said.