Hickory’s Fiscal Year 2021-2022 Recommended Budget

Recommended Budget

Hickory’s Fiscal Year 2021-2022 Recommended Budget

/ May 19, 2021

City Manager Warren Wood delivered his Fiscal Year (FY) 2021-2022 Recommended Budget to the Hickory City Council on May 18. The Recommended Budget totals $115,866,833 for all City operations, capital improvements, and debt service requirements for the upcoming year. This represents a 3.9 percent increase over the current year’s budget.

Key components of the budget include:

  • General Fund (Main Operating Fund): A budget of $58,859,515 is recommended, which represents a 4.2 percent increase over the current year’s budget. The property tax rate for FY2021-2022 is recommended to be increased 4 cents over the current rate of 58.75 cents to 62.75 cents per $100 of assessed value. This recommended property tax rate increase is needed to make scheduled increased debt service payments on the City’s General Obligation (GO) bonded debt approved by Hickory voters in 2014. The property tax rate was scheduled to increase by 2 cents in FY2020-2021 for increased bonded debt service payments, but that was postponed due to the COVID-19 pandemic. Without the recommended property tax rate increase, the FY2021-2022 Recommended General Fund Budget would be flat when compared to the FY2020-2021 Adopted Budget, meaning no increase in expenditures.
  • Water and Sewer Fund: A 3 percent increase in utility rates is recommended to maintain infrastructure and the enterprise fund’s self-sufficiency, while still maintaining a competitive rate when compared to systems across the state.
  • Solid Waste Fund: An increase of $1.00 is recommended to bring the monthly sanitation rate up to $25.00 per month for the upcoming fiscal year. The Solid Waste Fund is self-supporting, and this increase will help to offset increases in fuel and labor costs.


“With the vision of City Council and with the support of the community in approving the Bond Measure in 2014, we began a journey to improve the quality of life offered in our community that would attract and retain a quality workforce and create new investment. Today, our local economy is in the process of being transformed into a strong and diversified engine that is attracting new international investment; investment from well-established companies who have called Hickory home for generations; and as importantly, investment from small start-ups who believe in where Hickory is headed,” said Wood.

“At the onset of the bond program, we estimated that the City’s property tax rate would need to increase 6 to 8 cents over the course of the bond program to cover the bonded debt for our revitalization efforts. Because of the significant growth and economic development activity already spurred by the bond projects, only a 6-cent tax increase is needed overall to achieve this. The recommended 4-cent property tax rate increase for FY2021-2022 will be the last increase required to service the $40 million voter-approved GO bonded debt,” added Wood. “We are seeing growth in our property tax base, growth in jobs, and growth in population. In the months, years, and decades ahead, we look forward to seeing our investments through the bond program continue to create new opportunities and craft a stronger, more vibrant community.”

History and projected future of the City’s GO bonds:

  • November 2014 - the citizens of Hickory approved two GO bond referendums
    • $25 million for streets and sidewalks
    • $15 million for economic development
  • September 2018 - the City issued $15 million in GO bonds
  • July 2019 - City Council approved 2-cent property tax rate increase to service bonded debt
  • November 2019 - the City issued another $15 million in GO bonds
  • July 2021 - City Council considers 4-cent property tax rate increase to service bonded debt
  • Summer 2021 - the City anticipates issuing the remaining $10 million in GO bonds
  • October 2021 - the City’s initial seven-year GO authorization will expire. If needed, the City can get a three-year extension to October 2024 from the North Carolina Local Government Commission.


The full FY2021-2022 Recommended Budget is available for review online at https://www.hickorync.gov/budget.

The Hickory City Council welcomes public input and will hold a public hearing on the FY2021-2022 Recommended Budget on Tuesday, June 1, at 7 p.m., during its regular City Council meeting at the Julian G. Whitener Municipal Building.