Zebulon commissioners voted 6 to 1 to approve its budget despite community opposition.
Residents spoke against the budget during Monday night's meeting. The main sticking point is raises for the board, as the Town faces a $2.4 million budget deficit.
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In the budget, the mayor's pay will increase by $5,000 to $20,000 a year. Commissioners' salaries will double from $8,000 to $16,000 a year.
Initial proposals suggested paying Mayor Jessica Harrison $30,000, Mayor Pro Tem Quentin Miles $27,000, and Zebulon commissioners $25,000 annually, according to town staff.
"The proposed compensation adjustments were discussed during the budget process and included consideration of factors such as the time commitment associated with serving in elected office, changes in the cost of living over time, and a review of compensation levels," Harrison said in a statement to WRAL.
WRAL News reached out to every Zebulon town board member about the proposed raises. Each member either declined an on-camera interview, did not respond to our request for comment, or deferred to Town Manager Katy Crosby.
One commissioner asked others to reconsider the budget before approving it because of the opposition.
“I think a lot of the things that the citizens said are accurate, you know, our expenditures are outpacing our revenues and we haven't done anything to address that besides kick it down the road to next year,” Commissioner George Roa said.
Ultimately, the board voted to approve it, citing that a balanced budget helps them work towards eliminating the multi-million-dollar deficit.
In the larger, neighboring town of Wendell, the mayor is paid $16,000 each year, and commissioners make $12,000, according to town staff.
"Why would you think about rewarding yourself for these financial difficulties that you put the town in?" Zebulon resident Scott Carpenter said.
The pay raises come as Zebulon leaders are reducing operations elsewhere to close a $2.4 million budget gap. Town staff say the deficit is a result of rising personnel costs, healthcare expenses, infrastructure obligations, and continued growth-related service demands.
To close the gap, millions of dollars tied to inactive or delayed capital projects are being returned to the town’s unassigned fund balance, among other measures, according to a budget proposal.
"We should've been doing those things. If we're not doing them this year, when are we going to do them? Where would that money even come from?" Carpenter said.
"What we are experiencing is not a situation where the town cannot pay its bills," Crosby said in a video posted to Zebulon's social media page. "...it is a timing issue where some of the costs associated with growth occur, but the related revenues are received."
In recent budget work sessions, some town leaders expressed hesitancy over the long-term impacts of moving funds to fill the gap.
"We're taking the funds out of capital expenditures to fill that structural deficit," Commissioner George Roa said. "We're not raising taxes and we're not tightening any departments.
"Next year, we're not going to have the same capital expenditures available to plug the structural deficit that is just going to carry over. And it's just going to get a little larger because things get more expensive."
Town leaders met days earlier to discuss possible cuts to town parades, retreat/travel expenses, and other programming. During the meeting, town staff told the Board of Commissioners that Zebulon's unassigned fund balance, which is the town's primary operating reserve, sits at roughly 25%. Town policy requires it to remain at or above 30% of total general fund expenses.
Zebulon does not have a financial forecasting model to project revenues, expenses, or growth-related service demands, according to the town's proposed budget. Crosby said a financial forecasting tool is being developed "to better anticipate future needs."