Elon Town Manager Proposes 5-Cent Property Tax Rate Increase for 2026

For every $100,000 of assessed value on an Elon property, the town manager's proposed budget would add $50 to the annual tax bill. A home assessed at $250,000 would cost its owner $125 more per year; a downtown commercial property assessed at $400,000 would absorb $200 more. Water and sewer customers would face an additional 5% rate increase on top of that.

Town Manager Richard Roedner presented the proposal to the Elon Town Council on March 26, recommending a property tax rate increase from 35 cents to 40 cents per $100 of assessed value, a 14.3% jump. The 5-cent hike is projected to generate roughly $470,000 in new annual revenue, the single largest piece of a plan to bring the general fund to approximately $13.9 million, what Roedner calculated is needed to sustain current services and meet the council's priorities.

"This is not a budget I am pleased with or look forward to finalizing," Roedner wrote in his report, framing the increases as a structural correction rather than an expansion of services. His central argument: Elon has repeatedly tapped its reserve fund to cover the gap between what the town spends and what it reliably collects, and that practice has reached its limit.

Two upstream cost pressures are driving the utility side of the proposal. Burlington, which supplies treated water to Elon and handles the town's wastewater processing, is expected to raise its wholesale rate 4%, forcing Elon to pass a portion of that cost to its own customers. Separately, financial contributions from Elon University, historically a dependable partner for town events and certain municipal activities, have become less predictable and can no longer be assumed at prior levels, adding further pressure to the revenue picture.

The council has not yet voted. The March 26 presentation opened the formal budget process, which will include council review sessions, potential line-item adjustments, and at least one public hearing before a final levy is set. The deadline is hard: the new fiscal year begins July 1, 2026, and North Carolina law requires municipalities to adopt a balanced budget before that date. Roedner urged the council to use the review period to structurally reduce reliance on reserves rather than treat fund balances as a recurring revenue source. The public hearing schedule had not been announced as of the presentation, but it will be the point in the process where Elon residents and business owners can formally address the council before the rates are locked in.