Haw River budget keeps tax rate steady, raises utility fees 5 percent

Haw River is keeping its property tax rate flat, but town residents are set to pay more through their water, sewer and sanitation bills as the town works to balance a $9.5 million spending plan. The proposal would hold the rate at 44 cents per $100 of valuation while trimming overall spending by $949,667 from the current year, a shift that places more of the budget burden on fees instead of taxes.

Town manager Sean Tencer presented the fiscal 2026-27 plan on May 28 for Haw River, a town of 2,550 residents. The proposal would cut general-fund spending by $227,331, even as the water and sewer fund rises by $480,644 on the strength of higher utility revenue. Tencer described the budget as “neutral,” signaling that the town is not expanding spending so much as adjusting to current obligations and the fading availability of outside money.

The fee changes would hit monthly bills directly. Minimum water and sewer service that includes garbage and recycling would rise from $69.90 to $73 a month. The minimum monthly water charge for 2,000 gallons would increase from $17.50 to $18.39, and the sewer charge would move from $31.39 to $32.97. Tencer tied the 5 percent increase to Haw River’s own cost of buying water and sewer services from Burlington, which is also proposing a 5 percent increase in its rates.

The biggest reason the overall budget drops is that Haw River is still drawing down the remaining proceeds of a $6.1 million state grant awarded to the Haw River Fire Department through the 2023 biennial state budget. The town began the current fiscal year with $3.9 million in that grant, has already spent about $1.5 million, and expects to start the new year with about $2.4 million left. About half of the grant, or $3.1 million, is going toward construction of a fire-station addition and renovations, while the fire department continues operating out of the municipal civic center on Stone Street.

The fire project has been on the town’s books for some time. In September 2024, council minutes show members reviewed and tabled an AIA agreement with Samet Corp. to design and build the addition for $3.1 million. Haw River’s current 2025-26 operating budget was $10,417,186, also with the 44-cent tax rate, and it raised water and sewer fees by 5 percent then as well. The new budget keeps the tax rate steady for now, but it leans on higher utility fees and one-time grant money to stay balanced.