While some citizens might argue that the town shouldn't have taken this approach, the board said the town's financial situation made instituting a tax the best option.
The town board voted unanimously Monday night to levy a tax rate of 30 cents for every $100 of property valuation. For a homeowner with a $100,000 home, the tax would come to about $300.
The commissioners said with a major industry — Waverly Mills — closing its doors and an outstanding bill for storm debris cleanup, the town is strapped for cash. Waverly Mills had been contributing about $10,000 a year to East Laurinburg — mainly to help pay for streetlights - and the price tag for the cleanup comes in at about $100,000.
"Right now we don't have any other choices," Mayor Randy Miller said. "The amount could be somewhat worse."
The town board said it made the decision after talking with officials from the North Carolina Treasury Department.
Sharon Edmundson, Treasury's director of the fiscal management section, and T. Vance Holloman, deputy treasurer attended Monday's meeting.
"I brought the mayor a budget proposal," Edmundson said. "It does include a recommended property tax."
Edmundson said that the property tax would raise $12,000 in revenue for the 2008-2009 fiscal year. Edmundson said that the town could also receive sales tax revenue from the county in 2009-2010.
"We have explored the option of FEMA aid to pay Robert's Tree Service and right now that's not looking like a possibility," Edmundson said. "You don't have a whole lot of other options out there."
The residents at the meeting appeared to support the plan. Many expressed concern that without it, the town might be bankrupt and end up annexed by Laurinburg.
East Laurinburg resident Harry Pittman asked for a show of hands from the nearly 50 people in attendance, to ask which of those would prefer to be taxed by East Laurinburg rather than pay higher taxes in the city of Laurinburg. All raised their hands.
"I think it's a good idea," Pittman said. "I'd rather pay 0.30 percent than 0.42. This town has needed a tax base for many years."
He was a little apprehensive, however, that the tax may have to be paid by Jan. 5, 2009.
"I think they'll have to have some kind of grace period," Pittman said. He said he'd be fine to pay his taxes, but was worried that others, especially the elderly, would not be able to pay.
Constance Adams also supported the measure but not the due date.
"I think it's too soon," Adams said. "But we really do need streetlights."
Adams said her concern about crime was the number one reason why she wants the lights to stay on.
County Manager Kevin Patterson, who also attended Monday's meeting, said he will ask his finance officer if there is a way to accept later payments. His understanding, he said, was that the county could not legally use a later date.
"The bills will be due Jan. 5, 2009," Patterson said. "I am not sure how this plays out with such a late approval date."
In September, some East Laurinburg residents expressed anger and dismay over the possibility of property taxes being instituted.
One group started a petition to oppose any increase, raising over 100 signatures according to Agnes Freeman Sturdivant, one of the people who organized the drive. The 2000 U.S. Census said there were about 295 people living in East Laurinburg.
According to Sturdiviant, a quarter of those residents live below the poverty line and with a failing economy, they cannot afford more taxes.
Sturdiviant and the other petition organizers were not present at the meeting.
"We had to do something," Mayor Pro Tem Marshall Stevens said Monday. "Most people understand the situation."
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