By Paul Slobodian
Editor’s note: Mr. Slobodian is a Pamlico County resident who closely monitors the fiscal condition of local government.
Over the past five budget cycles, Pamlico County has quietly undergone one of the most significant fiscal expansions in its recent history. What began as a $22.8 million general fund budget in FY 2021–22 has grown to more than $27.1 million in the current FY 2025–26 budget – an increase of roughly $4.3 million, or 18.8 percent in just five years.
That growth has not been driven by population increases or major new industries, but by rising service costs, expanding departmental budgets, and a growing reliance on property taxpayers to close the gap.
Property taxes remain the backbone of county operations. In FY 2021–22, Pamlico collected $11.99 million in ad valorem revenue. By FY 2025–26, that figure has climbed to $13.95 million, an increase of nearly $2 million. Put differently, property taxes now account for more than half of all general fund revenues, and their share has grown steadily each year.
At the same time, the county’s population has remained essentially flat — meaning the tax burden per resident has risen sharply. In 2021–22, the per‑capita property tax load was approximately $1,020. By 2025–26, it has reached about $1,190 per resident, a five‑year increase of nearly 17 percent. For a county with a high proportion of retirees, fixed–income households, and modest wage growth, that trend is not trivial.
Much of the budget growth has occurred in public safety, social services, and health programs — areas that are essential but increasingly expensive. The Sheriff’s Office alone has grown from $2.37 million in FY 2021–22 to more than $3.3 million in FY 2025–26. The jail budget has risen from $2.14 million to $2.39 million. Social Services has expanded from $3.56 million to $3.86 million. These increases reflect real needs, but they also reflect a structural reality: the county’s cost of doing business is rising faster than its tax base.
The county has also leaned more heavily on fund balance appropriations to balance its budgets.
(Note: The term ‘fund balance’ is government-speak for discretionary savings.) In FY 2021–22, Pamlico appropriated $1.76 million from savings. By FY 2025–26, that figure has grown to $2.06 million. While fund balance is a legitimate tool, sustained reliance on it signals that recurring revenues are not keeping pace with recurring expenses.
Taken together, these trends raise a central question for Pamlico County’s future: How long can a small, rural county continue expanding its budget without a corresponding expansion of its economy? Without new commercial growth or a broader tax base, the burden inevitably shifts to homeowners — many of whom are already stretched thin.
Pamlico County is not alone in facing these pressures. Rural counties across North Carolina are grappling with inflation, state mandates, and rising personnel costs. But the numbers tell a clear story: the county’s fiscal trajectory is outpacing its population and economic growth. If the trend continues, the next five years will require either new revenue sources, significant spending discipline, or both. For now, the county’s taxpayers are carrying the load — and they deserve a clear, honest conversation about where this trajectory leads. Here is one conversation we ought to have: Boost both population and commercial growth with a bridge to Cherry Point.
