By Miles Layton

SWAN QUARTER — Hyde County property owners will not see a tax increase or higher solid waste fees in the coming year under a proposed $24.5 million budget presented Monday by County Manager Kris Noble to the Hyde County Board of Commissioners.

“This budget does not increase the property tax rate and allocates resources to maintain current levels of service,” Noble told the board during a special-called meeting. “The property tax rate will remain 92 cents per $100 valuation.” The solid waste fee schedule is also proposed to remain unchanged.

Because no tax increase is included, Noble said the county would not need to draw on its reserves to balance the books. “With no ad valorem tax increase, no appropriations from our general fund balance will be required to balance the budget.”

Noble then delivered her formal budget message, opening with the bottom line.

“I am pleased to present the manager’s recommended budget, fiscal year 2026–2027, in the amount of $24,578,535,” she said, “with a general fund at $20,288,078 of that amount.”

Story’s photo is of the lighthouse on Ocracoke — an island everyone should visit.

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The general fund reflects a 3% increase over the adjusted 2025–2026 budget. Noble noted the primary drivers of that growth are rising benefit costs, insurance premiums, utility rates and the cost of goods. The budget also includes a 2% cost-of-living adjustment for full-time county employees, on top of the standard 1% annual years-of-service increment.

“NCACC and other organizations have been polling various counties, and this was actually one of the lowest COLAs in the surrounding area,” Noble said.

One notable offset to increased spending is the retirement of the 2010 qualified school construction bond. 

“The payoff of the 2010 qualified school construction bond for school improvement projects represented two cents of the prior budget,” Noble said. “We’ll no longer have that debt.”

Noble organized the $20.3 million general fund around five budget objectives: safe and healthy communities, resilient infrastructure, social and educational development, stewardship for community progress, and investment in the workforce.

Public safety, which encompasses EMS, the Sheriff’s Office, emergency management, and fire services, is the largest single expenditure in the general fund, Noble said. She highlighted a period of rebuilding within EMS in recent years.

“Since 2023–2024, Hyde County EMS has been in an era of repair and restoration. The 2024–2025 and 2025–2026 budgets increased our EMS expenditures to allow for organizational restructuring and increased staffing to address our unique geography.”

Noble called attention to the county’s unusual position among North Carolina counties. Because Hyde County has no incorporated municipalities, she explained, “Hyde County government provides services of a broader nature than most counties.” Those services include public health, social services, emergency response, tax administration and elections — areas where county and municipal governments typically share responsibility elsewhere in the state.

The health department budget drew special attention, with Noble pointing to significant revenue reductions tied to changes at the federal level. Social services also absorbed a hit. 

“There was $130,000 in revenue social services did not receive this past year because of changes at the federal level,” Noble said. “And that becomes county dollar.”

On the revenue side, Noble projected total taxable property value for Hyde County at approximately $1.475 billion, including roughly $1.2 billion in real property, $35 million in public service utilities and $68 million in business and personal property, plus $74 million from DMV. Property tax revenue is forecast to reach $14,338,882 in the coming year, up from roughly $13 million in the current year. Sales tax is projected to grow at a conservative 2%.

Noble devoted considerable time to the county’s fund balance, tracing its recovery from a dangerous low point.

“We were in a very dangerous place in 2022 when we dropped to not quite 8%,” she said. “And last year, fiscal year 2025, we were able to grow to 21.65%.” She said the county’s goal should be a 30% unassigned fund balance and recommended zero dollars be appropriated from reserves this year. 

“It is our savings and it’s accumulated over years,” Noble said. “Fund balance is critical during times of disaster. It provides sufficient cash flow, it improves our investment ratings, and it provides funds when we’re in emergency or we have a budget shortfall.”

One area of ongoing structural discussion is solid waste funding. Noble described the fee structure launched in the 2025–2026 budget as a first step toward a fully enterprise-funded system. 

“The goal is to continue developing the fee structure to fund the county solid waste budget entirely with user fees, making it an enterprise fund very similar to the water system,” she said. 

Solid waste expenditures are projected at $1.5 million for the coming year. Noble acknowledged the particular challenges on Ocracoke, where space constraints limit the use of commercial dumpsters. 

“This will require some innovative solutions, which is what most of our challenges on Ocracoke require.”

Before Noble’s budget presentation, the board approved the Outer Banks Occupancy Tax Board’s recommended project allocations totaling $826,935, covering items ranging from Ocracoke Life programs and the Friends of the Library to the island’s tram project and the Ocracoke Cats Preservation Society. The board also approved a revised budget calendar, adjusting the previously planned three-day budget workshop schedule to two days — Tuesday, May 26, and Wednesday, May 27.

A public hearing on the proposed budget is scheduled for 1 p.m. Monday, June 1, in conjunction with the board’s regular monthly meeting. Final adoption of the budget and tax rate is slated for a special-called meeting on 10 a.m. Thursday, June 11.

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