Asheboro sets nearly $79.7 million budget; here are key parts

ASHEBORO — Asheboro passed a $79,653,436 budget for the new fiscal year.

At its June 4 meeting, the city council approved $52,421,888 for the general fund, $26,325,548 for the water and sewer fund, and $906,000 for the Powell Fund.

City Manager Donald Duncan said the city will keep the current tax rate at 71 cents. There will be a five-percent rate increase on water and sewer rates, and sanitation cans will go up to $23 to $30.

The city will also phase in new system development fees for construction to help pay for utilities.

Budget aims to navigate economic headwinds

This budget is up $4 million from the 2025-26 fiscal year. Duncan said the city is projecting higher healthcare claims, lower sales tax revenue, inflation, and rising energy costs. Big manufacturing projects like Toyota and Wolfspeed are also winding down their construction, which impacts revenue.

Public safety, as is typical each year, is a significant portion of operational costs. Police will get $16,032,292. Among their vehicle purchases, they plan to replace 10 patrol units and get an ATV and armored personnel carrier. Fire and Rescue will get $10,240,958.

Duncan said, “When somebody asks, ‘Where does my property tax go?’ It pays for those who watch out for you.”

Cultural and Recreational Services will receive $7,975,755. Among their changes, the golf course will stop offering memberships. Duncan and Recreation Services Director Jonathan Sermon said it has been operating at a loss for years. Starting in January, golfers will pay $18 for walking only, $25 for riding nine holes, and $35 for riding 18 holes. Fundraiser tournament rates will be $20.

For roadwork, the city will establish the Powell Fund as a separate fund. Public Works plans to repave another five miles this year.

Ongoing multi-year projects include the Jarrell Center City Garden, Fire Station #3, Trade Street, the library roof and Asheboro Regional Airport improvements.

Council members Kelly Heath and Mary Joan Pugh highlighted that the city regularly applies for grants to help with costs. Duncan credited the grant writer, Nate Marsh, for finding funds to pay partly for a sanitation truck and galvanized piping replacements. He said the new fire station is 75 percent funded, and the new airport terminal could be covered 80-100 percent.

Duncan said Asheboro begins the new fiscal year with low debt service ratio and a good $99.2 million year-over-year.

Water and sewer rates and projects

Water rates will see a five-percent increase, equating to about $3.21 more per month. The water and sewer department plans to rehabilitate five pump stations, build a new pump station on US-64 behind James River Equipment, and expand service to East Dixie Drive for commercial development.

Duncan called the water and sewer infrastructure the foundation for all pillars of economic development. “I don’t want to do increases, but I don’t have a choice,” he said, adding that rising energy costs affect the cost of materials like aluminum, brass, steel and copper.

This year, Asheboro will begin supporting the Seagrove-Ulah Metropolitan Water District’s plant upgrades. This budget adds a customer service manager and meter technician to help serve that region.

Mixing garbage, recycling leads to increases

Sanitation is the source of another increase. Households will pay $23 for the first garbage can – up from $18 – and $7 for the second can – up from $5.

Duncan said Waste Management unexpectedly upped the landfill tipping fee last year.

For the second can, the city will let households choose a recycling can or another garbage can. Duncan said one of the reasons is that people often mix solid waste into their recycling, which causes contamination.

“It will prevent us from wasting recyclable goods, which will reduce the amount going to the landfill, which will reduce tipping costs at the landfill,” he said. “And the people serious about recycling and can still be serious about recycling.”