Budget Reflects Strategic Vision and Sustainable Growth
Mocksville Town Manager Lee Rollins has submitted a balanced proposed budget for the Fiscal Year 2025-2026 to the Board of Commissioners, in accordance with the North Carolina Local Government Budget and Fiscal Control Act. The $8.48 million General Fund budget reflects the town’s commitment to long-term strategic planning, infrastructure investment, and sustainable growth, while maintaining the current property tax rate of $0.29 per $100 of assessed value.
“This budget is the result of thoughtful collaboration with our leadership team and Board of Commissioners,” said Rollins. “It represents an incremental but meaningful step toward realizing the town’s vision of a vibrant, modern community that still honors our small-town heritage.”
Revaluation Year Brings Revenue-Neutral Rate
As required in a revaluation year, the budget includes a revenue-neutral tax rate of $0.2401 per $100, adjusted for an average tax base growth of 4.87%. This calculation ensures that the overall tax burden across the jurisdiction remains consistent despite rising property values. Mocksville’s property tax base increased by over $344 million, from $1.29 billion to $1.63 billion.
Rollins clarified, “It’s important to understand that the ‘revenue-neutral’ rate addresses the collective tax burden, not individual tax bills, which may still rise or fall depending on specific property values.”
General Fund Priorities: Growth, Infrastructure, and Workforce
The FY 2025-2026 budget focuses on three main priorities:
- Sustainable Growth and Planning
- Updating the Town’s Comprehensive Plan, Land Use Plan, and Zoning Ordinance
- Renewed public input opportunities to guide future development
- Re-establishing Mocksville’s status in the NC Main Street Program
- Infrastructure Investment
- Continued pedestrian-friendly sidewalk development connecting people to downtown
- Reinstating annual street paving and maintenance
- Ongoing engagement with the Development Finance Initiative to create a transformative public/private partnership for the former Energy United property adjacent to downtown.
- Funding capital improvement projects for efficiency and safety
- Workforce Retention and Development
- Invest in town staff with a one-time 5% pay increase
- A new pay study to remain competitive with nearby municipalities. The current study was completed in 2019
- Hiring an additional firefighter to enhance shift coverage
- Increased Board compensation in recognition of public service
“We are not only investing in our infrastructure but also in our people,” said Rollins. “Our team is the foundation of our town’s continued success.”
Healthy Fund Balance and Reduced Debt
Mocksville’s unassigned fund balance stands at nearly $10 million—160% of General Fund expenditures—allowing the town to propose a budget without drawing on reserves. “Maintaining a healthy fund balance is essential for sound fiscal management of the Town and can be a valuable asset for emergencies and one-time opportunities,” explained Rollins.
The town will also make its final $100,000 debt payment on a USDA loan used to extend utilities to Gildan in 2015, closing out the REDLG project.
General Fund Revenues
Ad Valorem (real property) taxes account for the largest source of revenue for the General Fund and make up 51.6% of all General Fund revenues.
It is recommended that the Ad Valorem tax rate be set at the current rate of ($0.29/$100), which will generate $4,379,114 for FY 2025-2026. Of note, the top ten largest taxpayers, all industrial partners, contribute approximately forty percent of these revenues. This speaks positively to ongoing economic development initiatives.
Projected Sales and Use tax collections are budgeted at $1,500,000. This is in line with recent years. Given the current economic uncertainties and a three-month lag in receiving sales tax revenue from the state, our team will closely monitor.
Contracted Services
There will be a 3% increase for the law enforcement contract with the Davie County Sheriff’s Office as stipulated in year two of the current five-year agreement. Budgeted: $1,545,000
There will be a 5.2% increase for residential trash and recycling pickup from Republic Services. Residents will see an increase of $4.86 per billing cycle in their water and sewer bill. It is recommended that the General Fund no longer subsidize this service from real property taxes. Budgeted: $475,032
Water and Sewer Fund: Regional Partnerships and Rate Adjustments
The Water and Sewer Enterprise Fund, which operates independently from the General Fund, is meant to be self-sustaining with its own revenue stream. The FY 2025-2026 budget is proposed at $5.95 million. A 6% increase in water rates and a 14% increase in sewer rates are included, based on a rate study by Raftelis. These adjustments are necessary to comply with ongoing state and federal regulations.
The Water and Sewer Fund includes annual debt service of $239,852 for a twenty-year loan, which paid for needed capacity upgrades to the wastewater treatment plant.
By year’s end, Mocksville will decommission its water treatment plant and transition to a bulk water purchase agreement with Davie County Public Utilities, a move expected to mitigate long-term operating costs. “This regional partnership will help slow the rate of future cost increases while maintaining high service quality,” Rollins noted.
Capital Projects and Long-Term Planning
The proposed budget incorporates multiple capital improvement projects, including:
- $250,000 for water line replacements
- $250,000 for sewer line replacements
- General Fund investments focused on equipment replacement and infrastructure
Capital Reserve Funds, established for both the General and Water and Sewer Enterprise Funds, support long-range financial planning and reduce reliance on annual budgets for major expenditures.
Gratitude and Commitment
Rollins concluded by expressing appreciation for his leadership team and town staff: “Our ‘Town Team’ has made this transition seamless. Their professionalism and commitment to service are evident in every aspect of this proposed budget.”
Residents Invited to Review Proposed Budget & Attend Budget Hearing
Mocksville residents are invited to review the full FY 2025-2026 budget proposal on the Town website at https://mocksvillenc.org/current-budget/ or by visiting Town Hall.
Rollins encourages residents to attend the Public Hearing on Budget – Adopt Budget Ordinance on Tuesday, June 3rd at 6 p.m. in the Mocksville Education Building, 201 South Salisbury Street (the former Energy United Building).
During the meeting, Eric Thomas with the Development Finance Initiative (DFI) will share his evaluation of the five-acre former Energy United property recently purchased by the town. Commissioners will also hear from a consultant who will explain what a downtown master plan could look like and how it might benefit the community.
If you have questions, please contact Town Hall at (336) 753-6700.