Guilford County fire districts warn tax moratorium could cut funding

Guilford County paused its planned June 18 budget adoption and said it would call a special meeting by Tuesday, June 30, to adopt a budget ordinance. County staff and fire chiefs warned that a state property-tax moratorium in next year’s budget would leave rural fire departments across Guilford County with a $7.4 million funding gap, delaying hiring, equipment purchases and station planning.

On June 17, Guilford County was monitoring Senate Bill 889, which the North Carolina General Assembly approved Wednesday, June 10. Under the bill, counties with populations of 15,000 or more that completed a general reappraisal effective Jan. 1, 2026, would have to use the previous schedule of values for the taxable year beginning July 1, 2026, then move to the new schedule on Jan. 1, 2027. That change would push property-tax bills from a planned July 10 mailing to an estimated Aug. 15 mailing, while preserving the 1% early-payment discount through Aug. 31.

Guilford County's 23 rural fire districts originally asked for about $42.9 million in combined fiscal year 2026-27 funding, but a moratorium-based budget could lower projected revenue to about $35.5 million. The county estimated a $4.3 million revenue impact from public service equalization and a $0.3 million impact for rural fire districts. The county’s May 7 recommended FY2027 budget included a $1.1 billion spending plan with a General Fund total of $935,455,000 and a property tax rate of 61.90 cents per $100 of assessed valuation, down 11.15 cents from the prior year.

Summerfield Fire Chief Chris Johnson said the budget pressure affects apparatus orders, station renovations, staffing and training decisions made long in advance. A new fire truck can take three to five years to arrive after it is ordered, so a budget squeeze now could leave departments waiting well into the future. Johnson also pointed to rising call volumes and shrinking volunteer ranks.

Stokesdale Fire Chief Todd Gauldin said his district’s second station, which is set to open soon, will raise operating costs and that the department asked the county for three more positions. The Fire Division provides two Fire Operations units, a hazardous materials response team, inspections, investigations and fire marshal services. The Fire Marshal’s Office also assists all 22 fire districts with origin-and-cause work when requested. Many departments are already facing higher insurance, retirement, workers’ compensation and turnout gear costs, and the system was already carrying a roughly $2.3 million shortfall in February 2025.