Frequently Asked Questions

The Town’s revenue comes from a mix of local taxes, service charges, fees, and intergovernmental sources. The largest single source is property tax, which helps fund general government services such as police, fire, parks, public works, and administration. The Town also collects utility revenues from its water, sewer, and electric systems. These revenues are restricted to supporting those utilities.

Other important revenue sources include sales taxes from the State of North Carolina, user fees for recreation and cultural programs, development-related fees, vehicle taxes, solid waste fees, and grants. Together, these revenue streams allow the Town to fund both daily operations and long-term infrastructure needs.

The Town decides how to allocate money through an annual budget process that balances legal requirements, community priorities, and long-term planning. Each year, the Town begins by reviewing its Strategic Plan, which outlines the community’s long-term goals and guides decisions about where resources are most needed. Input from residents is also an important part of the process. The Town conducts a Budget Survey to gather feedback on services, priorities, and areas where residents would like to see investment.

Departments use this information to develop budget requests based on operational needs, service demands, and upcoming projects. These requests are reviewed by the Town Manager and Budget Office to ensure they align with strategic priorities, support core services, and fit within available revenues.

The Town Manager then presents a Recommended Budget and Budget Message to the Town Council. After public review and a formal public hearing, the Town Council adopts the budget ordinance, which legally authorizes how funds may be spent in the upcoming fiscal year.

The Town’s largest expenses vary by fund, but generally fall into a few major categories. In the General Fund, the biggest costs are personnel, such as police officers, firefighters, parks and recreation staff, public works crews, and administrative staff, because most Town services are delivered by people. Public safety, including police and fire, typically represents the single largest category of operating costs.

In the Town’s enterprise funds, including Water and Sewer and Electric, the largest expenses are related to system operations and infrastructure, such as treatment plant operations, power purchases, system maintenance, and large-scale capital improvements needed to support growth and reliability.