On June 3, the Southern Shores Town Council approved the fiscal year 2025/26 budget, cementing a four-cent townwide tax increase.

There was no community input during the brief public hearing, though finance/human resources director Bonnie Swain explained to council what the increase would mean to the average homeowner.

Swain said that for a resident with a home valued at $1 million, for example, the increase would amount to about $400 annually. This brings the total rate for the Town of Southern Shores to 18.4 cents per $100 real and personal property valuation, or about $1880 annually for that $1 million property holder. These are in addition to Dare County taxes, which are expected to remain revenue neutral. Residents in a municipal service district (MSD) will continue to pay the same unchanged additional rates: MSD 1 (.0408) and MSD 2 (.0176).

This is the first townwide increase since 2012, which council member Paula Sherlock said was “pretty amazing.”

Revenues and expenses for the 2025/2026 balanced budget total just under $11.5 million, compared to about $10 million last year.

“I think the budget was well put together,” said council member Mark Batenic. “It reflects what the town needs and what government is supposed to do for the citizens.”

The tax hike will help to fund several new positions in the fire department, which is transitioning from a volunteer to a paid municipal department.

As part of this transition, the town will now pay the debt service on the new fire department directly to the bank, rather than to the Southern Shores Volunteer Fire Department. By having its name added to the loan documents, the town will save considerable amounts of interest, said town manager Cliff Ogburn.

This change will require approval from the North Carolina Local Government Commission. The town must approve a resolution and application for funding, which is set for the July 8 council meeting.

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