Waxhaw could burn through its financial reserves by fiscal year 2031 if the town's property tax rate holds steady, Town Manager Scott Dadson warned.

Dadson presented projections at the Board of Commissioners' Tuesday, Oct. 27, work session showing that under a historical cost growth scenario, fund balance would be exhausted by FY2031. The current budget already draws roughly $900,000 from fund balance to stay balanced, according to meeting minutes.

Under a stress test scenario, unassigned fund balance would drop to 23.8% of the operating base by FY2032. That falls below the town's own 30% policy minimum. If the $0.29 tax rate is maintained, the operating share needed by FY2032 would range from about 23.65 cents under baseline assumptions to 41.44 cents under the historical cost growth scenario.

The board agreed it would like to keep the tax rate unchanged if possible.

Dadson also outlined a preliminary method of reallocating the existing tax rate between operations and debt service without changing the total rate or overall cash position. Davenport & Company is reviewing that approach, with final analysis expected in November 2026. Additional next steps include verification of financial assumptions by the Finance Department and consideration of findings during development of the FY2027–2028 budget.

The presentation was informational. No board action was requested.

Downtown paving, grants and a railroad deal

Commissioners Daniel Farris and Michael DeIulio were absent. All action items passed unanimously, 3-0.

Downtown asphalt repair: Assistant Town Engineer James Kelly said the work stems from Union County's cast-iron water main project downtown. Under an agreement between the town and Union County, Waxhaw administers the paving restoration and will be reimbursed by the county. Three bids came in. Trull Contracting LLC was the lowest responsible bidder at $205,058.10. The work area is south of NC 75 and includes a portion of West North Main Street. The anticipated start date is Monday, Nov. 2, with completion targeted for Nov. 24 to avoid winter temperature changes.

Safe Routes to School grant: Development Services Director Kevin Robinson said the grant covers a pedestrian crossing with a pedestrian refuge near an elementary school. The projected total cost is about $90,000, with a 20% local match of $18,000. Mayor Pro Tem Susanna Wedra made the motion to adopt the resolution and authorize Dadson to execute a reimbursement agreement with NCDOT if the grant is awarded.

Greenway feasibility study: Parks and Recreation Director Dena Sabinske and Deputy of Administration Robin Viar presented an NCDOT feasibility study grant for the North-South Greenway project, known as Sonny's Way. The maximum award is $120,000, with a $24,000 local match from fund balance. The town received the same type of grant in 2023 for the East-West Greenway. Mayor Robert J. Murray III said the trail would help connect neighborhoods to Kensington Elementary and the Cureton Town Center.

CSX license agreement: Robinson said CSX approached the town about town-owned items located in the railroad's right of way downtown, including benches, sidewalks and trees. The license agreement lets the town keep that infrastructure. The cost is $3,000 in the first year, $4,000 in the second year and $5,000 in the third year, followed by a 2.5% annual escalator. Commissioner Richard Daunt said the agreement avoids removal of items such as the memorial wall. Commissioner John Gemignani made the motion to adopt the resolution.

The board also moved its Nov. 24 work session to Tuesday, Nov. 17, to avoid Thanksgiving week.

The next regular meeting is Tuesday, Nov. 10, at 6:30 p.m. The next work session is Nov. 17 at 6:30 p.m.