Don Taylor, above, and his wife, Marie (not shown), are proponents of Bethlehem incorporation.

By MICAH HENRY

After withdrawing their first application in the Spring of this year, Bethlehem incorporation group members re-submitted an application to the North Carolina Local Government Commission (LGC) later in the year. The LGC oversees county and municipal budgets and borrowing, and gives input on feasibility of government budgets for proposed new towns, among other LGC tasks.

Ultimately, incorporation is a political decision involving the N.C. General Assembly. The process typically requires input at multiple levels before a final decision may be made.

The LGC heard the second application by Bethlehem incorporation proponents Don and Marie Taylor, of Bethlehem, at their Dec. 2, 2025, meeting.

LGC members approved a statement related to the potential incorporation of the community of Bethlehem, in response to a request from local residents. Under N.C. Gen. Stat. 120-163(c), residents seeking to incorporate a new municipality must receive from the LGC a statement regarding the proposed municipality’s prospects for financial viability and effective fiscal management.

The statement adopted by the LGC reflects its belief that the town is likely to be financially viable and that the community has indicated a commitment to sound fiscal policies and safeguards, the LGC press release stated. However, the statement also highlighted the ongoing statewide shortage of qualified local government finance professionals, which presents a significant challenge to sustaining strong financial management practices.

The LGC statement is neither a recommendation for nor against incorporation.

According to the LGC, the proposed Town of Bethlehem could reasonably expect to generate at least $2.4 million annually from property tax and sales and use taxes; in addition, other smaller revenue sources would add to this total. The Community proposes to levy an ad valorem property tax of $0.05 (i.e., 5 cents) for every $100 of valuation. Bethlehem’s proposal estimates its assessed valuation at $1.1 billion. LGC staff note that this is approximately 26.6% of Alexander County’s FY 2024-25 total valuation of $4.13 billion.

This property tax could generate approximately $534,000 based on: The reported assessed valuation of $1.1 billion, the planned $0.05 property tax rate, and Alexander County’s 97.06% property tax collection rate.

LGC staff estimate that, if incorporated, Bethlehem could expect to receive approximately $1.9 million in annual sales tax distributions, based on the following:
• In FY 2024-25, the most recent full year of data available, the Department of Revenue distributed $11,028,594.26 in revenue from Articles 39, 40, and 42 to Alexander County and Taylorsville.
• Alexander County allocates sales tax revenue on a per capita basis between the County and its existing municipality, Taylorsville.
• In calculating the current sales tax distributions, the Department of Revenue uses 2025 population data for Alexander County (35,958) and Taylorsville (2,361) that is provided by the Office of the State Demographer in the Office of State Budget and Management.
• The Community estimated that its population if incorporated would be 7,800.
• Had Bethlehem been incorporated for the entire FY 2024-25, it would have received 16.9% of the $11.0 million distributed to the County and its existing town, i.e., 7,800 / (35,958 +
2,361 + 7,800).

The Town of Taylorsville and Alexander County Government would be negatively affected by sales taxes diverted to Bethlehem, if incorporated. The Times has reached out to County and Town of Taylorsville leaders on more specifics.

Proponents relay next steps for Bethlehem incorporation

After the LGC meeting, the Taylors told The Times via email, “We were pleased with the Local Government Commission’s vote confirming the financial viability of the proposed Town of Bethlehem. We are continuing to work with our legal team on the next steps and overall timeline.

“Regarding the question raised by the LGC about the shortage of qualified local government finance professionals in North Carolina, we have already reached out to faculty and staff at Lenoir-Rhyne University and Appalachian State University’s accounting departments. Our goal is to support the state’s efforts while also developing a potential pipeline of candidates for our future needs,” Don Taylor commented.

When asked the following questions, Marie Taylor replied:

Q: Does the timeline include a public meeting or Q&A forum about the town formation, to provide an update?
A: “Once the timeline is developed, it will include additional town meetings.”

Q: Will the proposed map of Bethlehem town limits be refined or decreased? (The limits include all of Bethlehem 1 and Bethlehem 2 precincts currently)
A: “No, the current town limits will stay as proposed.”

Q: Do you intend the town incorporation to be decided by a for/against voter referendum of residents inside the proposed town limits?
A: “The goal is to have a referendum; however, that will be determined by the General Assembly or the Incorporation Subcommittee,” Mrs. Taylor stated.

Commissioners speak against incorporation

All five Alexander County Commissioners expressed their opinions against the proposed incorporation of the Bethlehem Community during at the Dec. 8 Commissioners’ meeting.

“There’s been a lot of talk, about commissioners, how we felt about Bethlehem [incorporation],” said Vice Chairman Larry Yoder. He noted he was “not in any way, shape, or form” in favor of incorporation.

He noted the County already provides law enforcement, fire protection, EMS, water, sewer, for Bethlehem and all the communities in the county.

“I’m not in favor of Bethlehem incorporation. Actually, if it does go through, it will raise taxes, I don’t care if you live in Vashti or Bethlehem, you’re looking at a higher tax rate. We’re sitting in a pretty good position right now. I would like to lower the tax rate again, if possible. It takes everybody working together,” Commissioner Ronnie Reese said.

Commissioner Kent Herman echoed what Yoder and Reese said about incorporation. “I would hate to see that happen to this county. I think it would hurt the whole county, tax-wise.”

Bethlehem resident and fellow commissioner Josh Lail said he knows the community well. “I can comfortably say the majority of Bethlehem does not want to incorporate. I, personally, am one hundred percent against it. The reason I am against incorporation is there’s no benefit to the Bethlehem Community and no benefit to Alexander County,” Lail said. “The services we need are being provided by Alexander County right now, and have been.”

Chairman Marty Pennell said he was “definitely opposed” to incorporation.