FY27 Budget Passes First Reading with 4.9-cent Tax Increase

Published on June 03, 2026

At its Tuesday evening meeting, Wilmington City Council voted 4-3 to approve the first reading of the City Manager’s recommended FY27 budget of $349.8 million. A second reading and final adoption vote is scheduled for June 16.

The budget was initially presented by City Manager Becky Hawke on May 4 with a property tax increase of 5.75 cents per $100 of assessed valuation. During the meeting, Councilmember Joyner motioned to amend the proposal to a 4.9-cent/$100 increase, which was approved by the majority of Council. Based on the median assessed home value of $445,000, the revised increase equates to approximately $18.17 per household per month.

The FY27 budget centers on people and safety, with more than 70% of increased costs supporting police and fire services. It advances the City’s living wage strategy, addresses rising operational costs, and invests in critical infrastructure and capital projects that support reliable service delivery.

To deliver on the promise of the recommended budget while reducing the tax increase needed, Council approved the use of $2,504,978 from the City’s available fund balance to fund one-time public safety purchases, including police vehicles and mission-ready gear.

The City maintains strong financial reserves with unassigned fund balance levels remaining within policy limits even after the proposed use for one-time expenses. As a reflection of the City’s strong financial standing, both S&P Global Ratings and Moody’s Ratings reaffirmed the City’s credit ratings in April.

The FY27 budget is designed to maintain the City’s strong financial position while meeting current service demands. If adopted on second reading, the budget will take effect July 1, 2026.

Read the proposed budget here.