Pender County adopts 2026–27 budget tied to SB889 values; board uses limited fund balance to restore some school and nonprofit support

Pender County commissioners adopted a FY2026–27 budget ordinance Tuesday night that keeps the county’s effective property tax rate at 73.75 cents and bases revenue projections on values tied to Senate Bill 889, staff said.

The ordinance funds a recommended package of employee pay actions — a 3% cost‑of‑living increase and targeted step adjustments known as the “way forward” — and protects recurring public‑safety positions tied to the new law enforcement center. County Manager presented the budget as a balance of competing priorities after months of delays caused by reappraisal and the absence of a state budget.

The board’s vote followed a public hearing in which residents, school officials and nonprofit leaders urged more local investment. Dr. Brad Breedlove, superintendent of Pender County Schools, told commissioners the district ranks near the bottom in local per‑pupil spending and asked for help covering deferred maintenance and capital projects.

At the meeting staff explained that SB889 — which would require counties conducting 2025 revaluations to use prior schedules of values for tax calculations — remained pending the governor’s action. County Attorney Barbara Jones said the bill had passed both chambers and the governor had 10 days to veto. If the governor vetoed it, the legislature could attempt an override later in the biennium; staff warned that a different final outcome would require a return to amend the tax rate and adopted ordinance.

Facing a roughly $3.8 million gap earlier in the process, commissioners and staff cut outside agency grants and pared enhancement requests. The compromise approved Tuesday adds limited one‑time fund balance appropriations to restore some items: a portion of school capital needs, $600,000 to adjust specific EMS/Rescue funding, and an additional $50,000 earmarked for outside agencies to be allocated by the board. Staff said restoring the full school capital request would reduce the county’s fund‑balance ratio from the mid‑30s to roughly 31% but is legally feasible as a one‑time action.

The motion to adopt the ordinance passed on a roll call with the majority in favor and one commissioner recorded in opposition; the budget document describes alternative scenarios for changing the tax rate if SB889 does not become effective.

Significance: the adopted budget preserves the board’s stated priorities for public safety and workforce retention while limiting recurring commitments funded from reserves; staff emphasized that continued reliance on fund balance for recurring expenses is not recommended.

What’s next: staff will provide detailed cost estimates for any mid‑year requests and the board will consider allocations from the newly created $50,000 outside‑agency pot; if SB889 is not enacted the board must reconvene to revise the revenue side of the ordinance.