By Nicole Bowman-Layton

EDENTON — The Edenton Town Council unanimously voted Monday night (June 22, 2026) to postpone adoption of its Fiscal Year 2026-27 budget and budget ordinance while awaiting Gov. Josh Stein’s decision on legislation that could determine how local property taxes are calculated in Chowan County.

Council members voted to table the budget until the governor acts on Senate Bill 474, which would determine whether Chowan County remains subject to a one-year moratorium on using its recently completed property revaluation for tax purposes. At-Large Councilman Craig Miller was absent.

Stein has until Friday, June 26, 2026, to sign the bill, veto it or allow it to become law without his signature.

Because local governments must adopt budgets before the start of the new fiscal year on July 1, town officials said they expect to hold a special meeting before June 30 to approve the budget once the bill’s fate is known.

Town Manager Corey Gooden told council that staff prepared two versions of the FY 2026-27 budget because of uncertainty created by legislation moving through the General Assembly.

If Chowan County is allowed to use its new property values, the town would approve a proposed tax rate of 43 cents per $100 valuation. If Senate Bill 474 becomes law and delays implementation of the revaluation, the town would instead use older property values and a proposed tax rate of 55.5 cents per $100 valuation.

“The budgets are no different as far as expenses go,” Gooden told council. “They are different with the two tax rates that would be applicable.”

Gooden emphasized that neither budget proposal includes increases for residential solid waste collection, commercial dumpster service, stormwater fees, water rates or sewer rates. Both versions include an approximately 8% increase in electric rates.

Why the legislation matters

The budget delay stems from a series of property tax bills approved by the General Assembly this month.

Stein signed Senate Bill 889 on June 19, creating a moratorium on the use of newly revalued property assessments in certain North Carolina counties. Chowan County’s status under that legislation changed multiple times through amendments and subsequent legislation.

Senate Bill 474, now awaiting the governor’s decision, modifies which counties are covered by the moratorium by adding Chowan County and ultimately determines whether the county can use its new revaluation values during the upcoming 2026-2027 budget cycle.

The issue created confusion for some residents during Monday’s meeting and afterward as property owners sought clarification from town officials.

For property owners, the question is not whether the county’s recent revaluation occurred. Instead, the issue is whether local governments will use those new values immediately or continue using previous assessments for another year.

If the moratorium applies to Chowan County, property owners would continue paying taxes based on older assessed values, while local governments would adopt a higher tax rate (55.5 cents per $100 for Edenton) to generate the same revenue. If the moratorium does not apply, the new property values would be used and tax rates would be set lower — 43 cents per $100 for Edenton — because the overall tax base would be larger.

The Albemarle Observer is working on a follow-up story about on how the bill will impact Chowan County taxes.

Mayor Hack High described the situation as “very strange” during the discussion of the legislation.

“We have no idea how or why this came about,” High said.

At-Large Councilman Patrick Sellers asked about the positions of State Sen. Norm Sanderson and Rep. Ed Goodwin, whose districts include Chowan County. During the discussion, officials noted that both legislators voted in favor of the legislation.

Gooden said town officials have spent the past several weeks working with other affected counties, legislators and the governor’s office to seek clarification and advocate for Chowan County’s position. Officials have also contacted the town’s lobbyist, Bob Steinburg.

“We’ve done everything we can,” Gooden said.

After signing Senate Bill 889, Stein issued a statement saying, “The cost of living is too high. This law provides tax relief for North Carolinians who are feeling pain in their pocketbooks.” However, he also expressed concerns about how the legislation affects certain counties and urged lawmakers to pass Senate Bill 474 to address those issues.

Council ultimately voted unanimously to table the budget until the governor acts.

Tyler Run rezoning approved

In other business, council unanimously approved a rezoning request for Tyler Run Apartments, changing the zoning designation for properties at 213 Tyler Lane and 303 Old Hertford Road from R-10 Residential to R-5 Residential.

Planning Director Dwayne Whealton described the request as a correction to the town’s zoning map rather than a change in land use.

“This is basically cleaning up the zoning map,” Whealton said.

The apartment complex has operated as a multifamily development for decades, but the current zoning classification does not permit multifamily housing, creating a nonconforming use.

The properties were recently acquired by Transcend Group, an affordable housing owner and developer.

Peter Wallace, representing Transcend Group, told council the company intends to keep the apartments as affordable housing while making significant improvements to the property.

“We’re looking to do a comprehensive renovation of the property,” Wallace said.

Planned improvements include expanding the leasing office to add a community room, community kitchen, exercise area and business center for residents.

Wallace said the company is not planning to add apartment units or convert the development to market-rate housing.

The apartments currently receive rental assistance through federal housing programs, and Wallace said residents’ rents are based on income guidelines established by the U.S. Department of Housing and Urban Development and the U.S. Department of Agriculture.

The company intends to keep the apartments as affordable housing units, Wallace said.

Other action

Council also:

• Proclaimed June as Gun Violence Awareness Month, recognizing the work of the Marcus Jackson Project and the annual Snow Day community event.
• Approved participation in a joint Homeland Security Grant Program award with Chowan County Emergency Management. The $20,000 grant will fund a specialized rescue watercraft for use in water emergencies in Edenton Bay and throughout northeastern North Carolina. There will be no cost for the county or town.
• Approved a letter of intent allowing contractors to begin ordering materials for the rehabilitation of Runway 1-19 at Northeastern Regional Airport. The project is funded through the Federal Aviation Administration. The town will not incur any cost.
• Approved a $15,640 budget amendment for additional work associated with the airport’s T-hangar project.
• Approved a budget amendment recognizing higher-than-anticipated airport fuel sales and hangar rental revenues.

Editor’s Note: Because Senate Bill 474 could also affect Chowan County’s budget process and tax calculations, The Albemarle Observer will continue following the legislation and its potential impact on county taxpayers.