The city of Lenoir proposed fiscal 2025-26 budget recommends an 11-cent decline in property taxes and a 2.3% increase in water and sewer rates in the upcoming year.
The budget, presented to the Lenoir City Council by City Manager Scott Hildebran, recommends property taxes decline from 57 cents to 46 cents per $100 in property valuation.
The proposed tax rate is 1 cent more than the revenue neutral rate of 45 cents per $100 in property valuation, according to the budget proposal.
The recent Caldwell County revaluation raised property values by an average of 55%, said Caldwell County Tax Administrator Josh Angle. A home that was valued at $100,000 may be $155,000 now, which increases the amount property owners pay in property taxes.
The average home value in Lenoir is $208,793, according to Zillow.
The budget proposal also recommends a decrease in the downtown Municipal Service District property tax rate from 20 cents to 18 cents per $100 in property valuation. The revenue neutral rate is 17 cents per $100 in property valuation.
The downtown Municipal Service District tax rate will generate about $35,000, according to the presentation.
The general fund budget is more than $25.2 million according to the budget proposal. The budget shows that the 2024-25 budget for the general fund was lower, at more than $23.75 million.
The utilities budget totals $13,263,721, which is more than the 2024-25 utilities budget of $11,770,028, according to the budget proposal.
The fiscal 2025-26 budget also recommends a 2.3% increase in water and sewer rates, which will result in an increase of about $1.28 for the average customer using 5,000 gallons per month.
“The city has traditionally used the annual Consumer Price Index — south region for all urban consumers as a gauge and guide when considering increases in water and sewer rates,” according to the budget message “This year, the CPI was 2.3% in February of 2025.”
Other budget highlights
Some key components of the proposed budget include:
- A cost-of-living adjustment of 3.75% for all employees.
- $420,000 allocated to continue implementation of pavement plan for resurfacing streets.
- Support for the downtown master plan to expand downtown decorations and add planters for a combined $40,000.
- More than $100,000 allocated for building demolitions and foreclosures.
General fund capital investments include:
- Ladder fire truck replacement for a total of almost $2 million, with $90,000 will coming from the budget and $1.21 million through other sources.
- Automated garbage truck replacement for $425,000.
- Mulberry Recreation Center improvements for $299,000.
Water and sewer capital investments include:
- Repairs and building renovations at the water treatment plant for about $4.65 million.
- Ridge Street and East Harper Avenue sewer replacement for a combined $1.85 million.
- Raw pump and valve replacements for a combined $222,000.
Council will hold a public hearing on the budget on June 3 at 6 p.m. in the Lenoir City Council Chambers, at 905 West Ave.
The budget is available in the city manager’s office and online at www.cityoflenoir.com/549/FY-2025-26-Budget-Proposal.