Look for city property taxes to increase

The much-discussed new main fire station and the seldom-discussed renovations to Kinston City Hall are expected to add another penny to property taxes, perhaps as soon as next year.

That comes on top of last year’s 1 cent increase to pay for the voter-approved library expansion and an as-yet non-specific increase next year to pay for almost $70 million in school improvements, if voters say yes to that referendum in May.

School referendum proponents are estimating that increase to be 5 cents per $100 of property value. That figure relies on partial financing by a new lottery. Those proceeds seem less promising since Gov. Mike Easley plans to use about half the lottery proceeds to reimburse the General Fund for past school spending.

The city will borrow nearly $5 million for the fire station and City Hall upgrades. The estimate has increased from the original $4.35 million due to the higher cost of construction material, Deputy City Manager Phil Robey told Kinston City Council members Monday.

Most of the money is expected to come from two USDA loans for long-life facilities. The first loan, for $3.1 million, appears to be set. The city will request a second loan for the balance of the construction costs. U.S. Rep. G.K. Butterfield is helping secure the financing.

The advantages to a USDA loan are the low interest rate and the long-term repayment schedule. The loan has a 40-year payback period.

Renovations to City Hall would include remodeling the present fire station into office space, detention rooms and evidence storage areas to be used primarily by the law enforcement branch of the Public Safety Department.

Greg Smith, public safety director, said the ceiling of the main fire station next to City Hall on King Street is not high enough to accommodate his department’s ladder truck. The truck is kept at the city complex on U.S. 258. If a fire requires the ladder truck, someone has to drive to the complex, pick it up and go to the fire, Smith said. The process wastes time.

Smith also has said the city’s population has shifted, mostly because of the flood buyout, and the King Street station no longer is centrally located.

Councilman Joe Tyson cautioned against another tax hike. Tyson said the 1-cent increase is an estimate relying on “enough people left in Kinston” to pay for it.

“People are leaving here,” Tyson reminded city officials.

Other council members said they are reluctant to increase taxes but they feel they must provide services the community has come to expect.