Lake Lure Approves Tax Increase, Seeks $1.96 Million FEMA Loan

Town officials say property tax collections remained stronger than expected after Hurricane Helene

The Lake Lure Town Council approved a property tax increase and authorized an application for nearly $2 million in federal disaster assistance during its June meeting as the town continues recovering from Hurricane Helene that impacted western NC on Sept. 27, 2024.

Council adopted a fiscal year 2026-27 budget totaling $10,067,258 across the General Fund, Water and Sewer Fund, and Electric Fund.

According to town documents, the budget increases the overall property tax rate by 2 cents to 37.7 cents per $100 of assessed value.

Town officials said the budget adjustment shifts funding to support fire department operations, including replacement of an aging fire engine, staffing needs, firefighter compensation and costs associated with operating Fire Station 2, the former Fairfield Mountains Volunteer Station.

During the same meeting, the council approved Resolution No. 26-09-09B, authorizing Town Manager Olivia Stewman to apply for and, if awarded, accept and administer a Federal Emergency Management Agency Community Disaster Loan of up to $1,962,872.

According to the town’s June 12 meeting summary (also see DocumentCloud archive version and town’s Facebook post), staff began discussions with FEMA shortly after Hurricane Helene.

“Town Staff have been working with FEMA on their community disaster loan, which provides bridge funds to local governments for recovering or for covering operational costs after a disaster,” the town said on its website.

The summary notes FEMA has determined Lake Lure is eligible for up to $1.96 million through the program.

The town’s report also states that property tax revenues did not decline as much as originally anticipated following the storm.

“As mentioned during the budget discussion, the property tax collection rate really did not decline as predicted,” the town’s summary said.

Officials said the loan request is not based on property tax losses.

“This amount does not account for any loss of property tax and is more focused on revenues from recreational loss,” the statement said.

According to the meeting summary, town officials said the funding would help support cash flow and continued recovery efforts.

The June meeting included updates on multiple recovery projects. Officials reported that more than $5 million in FEMA project obligations have been approved for debris removal, emergency protective measures, bridge design, water and wastewater repairs, road damage, and engineering projects.

The town also reported receiving a $31 million State Revolving Fund loan offer for sewer replacement projects, including $6 million in principal forgiveness.

Additional recovery projects discussed during the meeting included reconstruction of Washburn Marina, replacement of Boys Camp Bridge, continued sewer replacement planning, sediment removal, future dredging operations, and design work for a replacement dam.

Council members also approved a 2027 lake drawdown schedule and authorized engineering and permitting work for a proposed deep-water access ramp at Mallard Cove.

The actions reflect the next phase of Lake Lure’s recovery as town officials continue pursuing outside funding sources while advancing long-term infrastructure projects damaged or delayed by Hurricane Helene.

Read the 120-page agenda packet on the town’s website or on DocumentCloud.