Stable Tax Rate Supports Ambitious Community Goals
Mocksville Town Manager Lee Rollins has presented a balanced $8.48 million General Fund budget for Fiscal Year 2025-2026 that maintains the current property tax rate of $0.29 per $100 of assessed value. The proposal reflects the town’s continued focus on strategic planning, infrastructure investment, and sustainable growth.
“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.”
Revenue-Neutral Rate Reflects Property Revaluation
In accordance with North Carolina’s requirements for a revaluation year, the budget includes a revenue-neutral tax rate of $0.2401 per $100. 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.
“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,” Rollins explained.
Key Focus Areas: Planning, Infrastructure, and People
The proposed budget is centered on three strategic priorities:
Planning for Smart Growth
- Updates to the Town’s Comprehensive Plan, Land Use Plan, and Zoning Ordinance
- Community engagement and public input sessions
- Reinstatement in the NC Main Street Program
Infrastructure Enhancements
- Sidewalk construction to improve downtown connectivity
- Renewal of 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 for critical capital improvement projects that enhance efficiency and safety
Investing in Municipal Workforce
- Invest in town staff with a one-time 5% pay increase
- A new pay study to stay competitive with nearby municipalities (the last was in 2019)
- Hiring of an additional firefighter for improved shift coverage
- Increased Board compensation in recognition of public service
“We are not only investing in our infrastructure but also in our people,” noted Rollins. “Our team is the foundation of our town’s continued success.”
Sound Fiscal Management: Strong Reserves, Low Debt
Mocksville continues to demonstrate financial discipline, with nearly $10 million in its unassigned fund balance—equal to 160% of General Fund expenditures.
“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,” said Rollins.
Additionally, the town will make its final $100,000 payment on a USDA loan tied to utility expansion for Gildan in 2015, closing out the REDLG project.
Revenue Outlook and Service Contract Adjustments
General Fund Revenues
- Ad Valorem (real property) taxes make up 51.6% of the General Fund, generating $4.38 million at the current tax rate
- Forty percent of those revenues come from the top ten industrial taxpayers, reflecting successful economic development efforts
- Sales and Use tax revenues are projected at $1.5 million, with close monitoring due to economic uncertainty
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: Investing in Infrastructure and Partnerships
The Water and Sewer Enterprise Fund operates separately from the General Fund, relying on user fees to support its operations. For FY 2025–2026, the proposed budget totals $5.95 million. To ensure long-term sustainability and compliance with state and federal mandates, a rate study by Raftelis recommended adjustments that are reflected in the budget: a 6% increase in water rates and a 14% increase in sewer rates.
The fund also includes an annual debt service payment of $239,852 to cover a twenty-year loan used for critical upgrades at the wastewater treatment plant.
By the end of the fiscal year, Mocksville will retire its existing water treatment facility and shift to purchasing water in bulk from Davie County Public Utilities. This regional collaboration is expected to reduce operating expenses over time. “This partnership allows us to stabilize future costs while continuing to provide reliable, high-quality service,” explained Rollins.
Investing in the Future: Capital Projects and Reserve Funds
Major capital investments include:
- $250,000 for water line replacements
- $250,000 for sewer line replacements
- Equipment and infrastructure improvements within the General Fund
Capital reserve funds, established for both the General and Water and Sewer Funds, strengthen long-term financial planning and reduce dependence on annual budget cycles.
Public Involvement Encouraged: Budget Review and Hearing
Rollins expressed his appreciation for the Town team: “Our ‘Town Team’ has made this transition seamless. Their professionalism and commitment to service are evident in every aspect of this proposed budget.”
Residents are encouraged to review the full budget at https://mocksvillenc.org/current-budget or in person at 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).
At the meeting, Eric Thomas from the Development Finance Initiative (DFI) will present his assessment of the five-acre former Energy United property recently acquired by the town. Commissioners will also hear from a planning consultant who will outline the potential components of a downtown master plan and discuss its possible benefits for the community.
For questions, contact Town Hall at (336) 753-6700.
