The Hope Mills Board of Commissioners was presented with the proposed budget for the upcoming fiscal year during a regularly scheduled Monday meeting at Town Hall.
Town Manager Chancer McLaughlin read through the proposed numbers for fiscal year 2025-2026 and referred questions to Finance Director Drew Holland, who provided an overview of the budget document distributed to the board.
McLaughlin stated that the proposed budget would take effect on July 1, 2025, and run through June 30, 2026. He described it as a conservative forecast for the upcoming fiscal year, with the full budget to be published Tuesday on the town’s website.
“I’m recommending an operating budget of $22,083,000, which reflects our continued commitment to fiscal responsibility while making key investments in public safety, infrastructure, inspections, and quality-of-life enhancements,” McLaughlin told the board.
The proposed budget includes a total ad valorem tax rate of 45 cents per $100 of assessed value, which represents a 6-cent decrease from the fiscal year 2025 rate. Although this rate is 14 cents higher than the revenue-neutral rate of 31 cents, it is expected to generate $9,257,325 in revenue to support essential services. Of the 14-cent difference, 10 cents are necessary to offset a $2,070,789 shortfall resulting from changes to the sales tax distribution formula.
“Notably, this is the lowest tax rate Hope Mills has seen in the last decade,” McLaughlin added. “Though it remains a bare-bones rate, some services had to be reduced to maintain it.”
McLaughlin outlined major line items in the proposed budget. One significant item is continued support for School Resource Officers (SROs) in Cumberland County Schools, with the town contributing $350,150 beyond the reimbursed salary expenses from the school district.
This contribution stems from the announcement last May from the Cumberland County Sheriff’s Office that it would no longer provide SROs for certain schools in Fayetteville, Hope Mills, and Spring Lake starting July 1, 2024. The Sheriff’s Office cited staffing shortages and the need to reallocate resources to handle service calls, prompting municipalities to take over SRO responsibilities at their schools.
“This proposed budget reflects our continued dedication to being responsible stewards of our taxpayers’ dollars while maintaining high service standards. Although it’s a lean budget, it supports core services and critical improvements,” McLaughlin said.
In order to balance the budget and set a 45-cent tax rate, Holland told the board they had to draw from reserves and project funding.
“I’m not entirely comfortable with the level of project funding used, and I’ve discussed this with the manager and the mayor,” Holland said, “I’d like to revisit this during our budget workshop and explore ways to reduce those amounts.”
Commissioner Elyse Craver raised concerns about the county’s recent property revaluation. “You’re not lowering taxes — you’re actually increasing them by 14 cents,” she said to Holland.
“We are lowering the rate from 51 to 45 cents,” Holland replied.
Craver responded, referencing the impact of the county’s recent housing revaluation. “But we’re going to be paying more because of that revaluation. If I paid $1,000 before, I could be paying $3,000 now. So will everyone else whose property values went up. We need to aim for 31 cents if we want to avoid a tax increase.”
Mayor Pro Tem Kenjuana McCray acknowledged Craver’s concern but said that the increase primarily funds public safety. “If we want to lower the tax rate, just tell us what to cut,” she said.
McLaughlin supported McCray’s point, saying that 10 of the 14 additional cents are strictly to offset the county’s funding shortfall. “So even if we started at 31 cents, we had to go up to 41 cents just to make up for that. The remaining 4 cents are all for public safety.”
New business
Under new business, the board passed a resolution authorizing the town manager to execute a contract with Schnabel Engineering for inspection services and continued monitoring of the instrumentation at the Hope Mills dam. The renewed contract spans five years at a total cost of $72,000. Schnabel Engineering has provided inspection services and instrument data tracking and analysis after the dam’s completion in 2018.
The board also unanimously approved a $11,500 budget amendment to cover the cost of acquiring an additional K-9 for the Hope Mills Police Department. The funds will be drawn from the drug forfeiture account. According to Police Chief Stephen Dollinger, $10,000 will cover insurance and necessary supplies for the dog’s upkeep, while $1,500 will be used for the purchase of the dog itself.
Public hearings
The board heard and voted on several cases under public hearings.
The first and largest item was the rezoning of 50.76 acres from R5-CZ to R5-CZ (Residential Conditional Zoning), which passed with a 4-1 vote, with Commissioner Craver opposed. The approval included a site plan amendment, changing a portion of the development from single-family residential to townhome residential units.
Commissioners also considered a contiguous annexation request for four lots in the All American Business Park. The vote passed unanimously.
Closed session
The board also held a closed session to consult with the town attorney to consider matters under attorney-client privilege. Upon returning to open session, the board voted to seal the minutes of the closed session. No action was taken.
The next regular board meeting was scheduled at 6 p.m. on June 2 at Hope Mills Town Hall. Mayor Jessie Bellflowers informed the board that this meeting will now instead be converted from a standard board meeting to a public hearing, allowing residents to provide input ahead of the upcoming budget workshop at 6 p.m. on June 9.
