Chowan County commissioners consider 5% COLA, school supplement and modest tax increase during budget work session
May 14, 2026 | Chowan County, North Carolina
This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »
Chowan County commissioners met May 14 at the Chowan County Public Safety Center for a special budget work session to review department requests and the manager’s recommended FY2025‑26 budget. Manager Kevin Howard and Finance Officer Cathy Smith presented revenue, fund‑balance and salary options while department leaders outlined priority needs.
The board signaled support for including a 5% cost‑of‑living adjustment for all county employees in the draft budget and agreed to include the sheriff’s requested 3% career‑ladder merit program. Howard said his recommended budget was presented without a tax increase but noted commissioners were open to a limited increase; commissioners indicated a 2.5‑cent rise (raising the rate from 69.5 to 72 cents) would be the maximum they were comfortable considering.
Why it matters: the county faces competing priorities — employee pay, public safety staffing and equipment, and school funding — while seeking to maintain a fund‑balance policy. Finance Officer Cathy Smith and Manager Howard warned that continued reliance on fund balance to bridge gaps increases pressure to raise taxes to cover future projects, including a planned jail and a new middle school.
Key fiscal details presented included a projected additional revenue of $637,342 tied to 'Timbermill' and a $1.5 million payment the manager recommended leaving in the proposed budget as a reserve toward future debt service for a new high school even though the payment is not due in the upcoming fiscal year. Staff estimates showed using roughly $800,000 of the current budgeted fund balance for FY2024 and noted Project Teapot ($408,000) would leave the county with an estimated 22.8% fund balance if fully spent; the county’s stated fund‑balance policy target is 25%.
On schools, the board reviewed the local school system’s requests. Commissioners expressed a preference to fund the tier‑three request for 5% teacher supplements (cost: $351,030) while acknowledging the district’s tier‑one request — roughly $1 million to maintain current service levels after a state revenue reduction — remained the larger ask. Board members discussed the school system’s unassigned fund balance of $970,000 and whether the schools could use some of that balance to reduce the county’s contribution.
Next steps: the board scheduled another budget work session for May 22 at 9 a.m. No formal budget votes were taken at the May 14 work session; the manager will return with recommendations and supporting handouts referenced during the meeting.
The board signaled support for including a 5% cost‑of‑living adjustment for all county employees in the draft budget and agreed to include the sheriff’s requested 3% career‑ladder merit program. Howard said his recommended budget was presented without a tax increase but noted commissioners were open to a limited increase; commissioners indicated a 2.5‑cent rise (raising the rate from 69.5 to 72 cents) would be the maximum they were comfortable considering.
Why it matters: the county faces competing priorities — employee pay, public safety staffing and equipment, and school funding — while seeking to maintain a fund‑balance policy. Finance Officer Cathy Smith and Manager Howard warned that continued reliance on fund balance to bridge gaps increases pressure to raise taxes to cover future projects, including a planned jail and a new middle school.
Key fiscal details presented included a projected additional revenue of $637,342 tied to 'Timbermill' and a $1.5 million payment the manager recommended leaving in the proposed budget as a reserve toward future debt service for a new high school even though the payment is not due in the upcoming fiscal year. Staff estimates showed using roughly $800,000 of the current budgeted fund balance for FY2024 and noted Project Teapot ($408,000) would leave the county with an estimated 22.8% fund balance if fully spent; the county’s stated fund‑balance policy target is 25%.
On schools, the board reviewed the local school system’s requests. Commissioners expressed a preference to fund the tier‑three request for 5% teacher supplements (cost: $351,030) while acknowledging the district’s tier‑one request — roughly $1 million to maintain current service levels after a state revenue reduction — remained the larger ask. Board members discussed the school system’s unassigned fund balance of $970,000 and whether the schools could use some of that balance to reduce the county’s contribution.
Next steps: the board scheduled another budget work session for May 22 at 9 a.m. No formal budget votes were taken at the May 14 work session; the manager will return with recommendations and supporting handouts referenced during the meeting.
View the Full Meeting & All Its Details
This article offers just a summary. Unlock complete video, transcripts, and insights as a Founder Member.
✓
Watch full, unedited meeting videos
✓
Search every word spoken in unlimited transcripts
✓
AI summaries & real-time alerts (all government levels)
✓
Permanent access to expanding government content
30-day money-back guarantee
