Between 20 May and 7 June 2026, the petitioners rewrote the budget on grayscreeknc.com without noting the change anywhere on the site. Both versions are archived on the Wayback Machine. Here is what moved.
| Figure | Website, May 2026 | Website, June 2026 |
|---|---|---|
| Property tax rate | $0.25 / $100 | $0.21 / $100 |
| Net increase over the $0.15 fire tax | $0.10 | $0.06 |
| Cost per household, per year | ~$286 | ~$171 |
| General fund (operating) | $7.5M | $8.73M |
| One-time capital outlay | $4.95M | $7.47M |
| Total revenue (all funds) | $13.97M | $17.4M |
| Ad valorem (property tax) revenue | $5.5M | $5.93M |
First, the direction. They cut the advertised tax. The headline rate fell from $0.25 to $0.21 per $100, and the net increase residents actually feel, after it replaces the existing $0.15 fire-district tax, fell from $0.10 to $0.06, nearly in half. The worked example dropped from about $286 a year to about $171. At the same time the budget grew: operating up about $1.2M, one-time capital up about $2.5M, total revenue up about $3.4M. A smaller advertised tax on top of a bigger budget.
Second, the convergence. The website's old revenue figure, $13.97M, was the more conservative of the two budgets in circulation. The new figure, $17.4M across all funds, lands almost exactly on the $17M the Facebook post claimed. The version that looked careful has moved toward the version that looked inflated, leaning partly on a new $800,000 FAMPO grant and a restructured Powell Bill line.
What did not change: there is still no feasibility study, no charter, and no published calculation behind any of these numbers. Figures that swing this far in three weeks, with no model released to justify either set, are estimates, not a budget. The line-by-line below uses the petitioners' May figures; the June revision is a third set of numbers, and the contradiction only deepens.
Before looking at individual line items, the structural issue: the same petitioners are circulating two different sets of numbers.
The Facebook post version is more generous (revenue is higher, surplus is larger, trash is "free"). The website version is more conservative (revenue is lower, surplus is smaller, trash costs $325 per household per year). The website appears to have been written later, after some scrutiny of the original Facebook post.
Residents at the Paradise Acres meetings will likely hear the Facebook version. Residents who visit the website will see the website version. Which one will be presented to the NC General Assembly is unknown. Neither has been published as a formal feasibility study.
Where the money is supposed to come from, and what's questionable about each figure.
| Line item | Claimed | What's questionable |
|---|---|---|
| Ad valorem property tax | $5.5M (May figures) | At a $0.10 municipal rate (excluding the existing $0.15 fire tax), this implies a taxable base of roughly $5.5 billion. For a rural community with significant mobile-home stock and modest median home values, that figure deserves an independent assessment from the Cumberland County Tax Office. (The June revision raised this line to $5.93M at a $0.21 rate; see the revision watch above.) |
| Sales tax distribution | $7M (Facebook) / $4M (website) | NC distributes Article 39/40/42/44 sales tax to municipalities by formula. Hope Mills, which has a $24M budget and similar size, reports roughly $4-5M from sales tax. The $7M figure on Facebook is implausible. The $4M figure on the website is more defensible but still high for a town with no commercial concentration of its own. |
| Refuse / sanitation | $1.5M (both versions, framed differently) | The Facebook post says incorporation will "eliminate individual monthly trash bills." The website says households will pay a $325/year sanitation fee. Both can't be true. Either residents pay through the town or they pay directly to haulers; the town doesn't get free money. |
| Powell Bill (roads) | $1.2M (Facebook) / $400K (website) | Powell Bill is allocated by NC based on population and certified municipal street mileage. The $400K figure on the website is plausible. The $1.2M "street and transportation funding" on Facebook is not explained. Powell Bill funds are also restricted to local street maintenance: they cannot be used for police, fire, or general operations. |
| Recreation | $1.3M (Facebook) / $1.1M (website) | Listed as "recreation and miscellaneous taxes" on Facebook. Listed simply as "Recreation" on the website. Neither version explains what specific tax or fee generates this revenue. Recreation is normally an expense, not a revenue line. |
| Utility franchise tax | $900K (website only) | Plausible for a town this size. Not listed in the Facebook version. |
| Permits & fees | $450K (Facebook) / $350K (website) | Within range. Will scale with development activity, which the petitioners simultaneously claim will be restricted. |
No functioning municipality runs a 55% surplus margin. Either expenses are understated, revenue is overstated, or money will be spent on something not listed.
The Facebook version of the budget shows $17 million in revenue against $11 million in expenses, a $6 million surplus on an $11 million budget. That is a 55% margin.
Real NC municipalities run roughly balanced. Hope Mills's adopted budget is balanced. Spring Lake's is balanced. Fayetteville's is balanced. Towns are required by NC's Local Government Budget and Fiscal Control Act to adopt balanced budgets: they cannot legally appropriate funds in excess of estimated revenue, and they can only run a structural surplus by accumulating fund balance, which itself is subject to state oversight.
A 55% surplus suggests one of three things:
The website version is closer to balanced ($7.5M operating + $4.95M one-time capital against $13.97M revenue), but the petitioners owe residents an explanation for why the Facebook version is so different.
The petitioners' tax-rate comparison shows Gray's Creek at $0.25, lower than Hope Mills ($0.48). The comparison is misleading.
Hope Mills did not start at $0.48. New municipalities in NC routinely start at low introductory rates and raise them as service obligations grow. The honest comparison is not where Hope Mills is today but where Hope Mills was in its first three years.
The $0.25 figure is also "subject to revision." Once incorporated, the first elected Town Council sets the actual rate. Nothing on the website is binding. The petitioners cannot guarantee any rate will stay at $0.25 because they will not be the ones setting it.
For commercial property owners (the corridor along Highway 87, the Gray's Creek shopping center, the Corporation Drive cluster, contractors, farms, and automotive shops), the rate applies to much larger valuations than residential property. A municipal tax adds thousands per year for commercial operations, on top of the unchanged county tax.
Items the current materials omit but a serious feasibility study would require.
Adding 2-3 dedicated deputies costs roughly $300-500K per deputy fully loaded. The website allocates $2.6M for "Public Safety" but doesn't break out what's negotiated with the Sheriff vs. what's contributed to the fire departments.
The website mentions "$4.95M in proposed one-time capital outlays (buildings, vehicles, equipment)." This is not financed in the operating budget. How will it be paid for: debt, reserves, grants? At what interest rate? Over how many years?
A $5.5M ad valorem revenue claim requires showing the Cumberland County parcel data that supports it. The petitioners have not published the underlying calculation.
The budget claims to fund Gray's Creek Fire Stations 18 & 24 and Cotton Fire Department. No public endorsement or contract framework from any of those departments has been produced.
What happens if sales tax distributions come in at $3M instead of $4M? At what point does the $0.21 rate become unworkable? A real feasibility study models this.
The closest peer is Hope Mills (similar size, same county). Why is its budget $24M when Gray's Creek's would be $7.5M for the same service basket? The website does not address this.
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