Tax Collection Remains on Target 2/11/2010

Property tax collection remains on pace, enabling the Town to remain in good financial shape as preparation begins on the 2010-2011 budget.

More than 92 percent of the 2009 tax bill total had been paid by Jan. 31, a percentage comparable with previous years for the end of January. As more payments are received, Town officials expect the collection percentage to reach or exceed 98 percent for 2009 bills.

That collection rate is important this year and next because the Town will use it in forecasting how much property tax revenue it will collect next fiscal year in budgeting for Town programs and services.

At the Feb. 16 Town Council meeting, Finance Director Drew Holland will present a summary of the Town's financial standing as of Jan. 31.

Recently, an accounting error in a Town budget status report led to a newspaper story that tax collection was down and that the Town faced a shortfall. The newspaper story accurately reflected what was in the budget report. However, one of the weekly bank deposits of tax payments had not been reflected in the report. That made it appear that the collection rate was much lower than actually was the case.

"At the end of the day," Holland said, "the Town has been and remains in strong financial health."

Town Manager Carl Dean said this week that property tax collections for the current year likely will exceed the amount that was budgeted.

"We budgeted very conservatively this year," he said.

In another budget matter, Holland said it's possible that the Town could receive an additional $2.65 million in state transportation reimbursement for the Green Oaks Parkway project before the end of June. That's good news because the original agreement with the state called for the Town to receive the money in 2011-2012.

Home page

Town of Holly Springs - PO Box 8 - 128 South Main Street - Holly Springs, NC 27540 - (919) 552-6221 - Holly.Springs@hollyspringsnc.us