Wilmington City Council approves FY26 budget

Published on June 18, 2025

At its June 17 regular meeting, Wilmington City Council voted to adopt the FY26 city budget, which takes effect on July 1 at the start of the city’s new fiscal year. The $306.6 million balanced budget is guided by the city’s long-term priorities outlined in the city’s vision, mission, core values, and five-year strategic plan. These focus areas include support for workforce development, public safety, infrastructure, and housing affordability, while maintaining critical services and managing costs responsibly.

Following a countywide revaluation conducted by New Hanover County, the median residential home value increased from $238,300 to $364,408. To maintain revenue neutrality, the city set the FY26 tax rate at $0.2825 per $100 assessed valuation. This includes a slight rounding adjustment from the calculated neutral rate of $0.2815. The Municipal Services District (MSD) tax rate changed from $0.0647 cents to $0.05 per $100 assessed value due to reappraisal.

Highlights of the FY26 budget include:

• $8.6 million in competitive pay to attract and retain skilled employees. It realigns pay scales, reclassifies key roles, adds senior police and fire positions, raises the minimum wage to $17.38 per hour, and lowers health premiums by $50 per month. These efforts support a strong, stable workforce ready to serve Wilmington’s growing needs.
• Nearly one-quarter of the general fund supports police and fire services in FY26. Key investments include transitioning from the Safelight program to city-owned cameras and converting the SABLE helicopter unit to unmanned aerial systems. More than $400,000 will support police equipment and service contracts. New funding will also cover cancer screenings for all uniformed firefighters.
• More than $30 million in capital investments to improve and maintain Wilmington’s essential infrastructure. This funding supports street and sidewalk restoration, drainage and stormwater improvements, and the preservation of public facilities to ensure Wilmington’s infrastructure remains strong, resilient, and ready for the future.
• $2.3 million to fund a range of affordable housing initiatives, including gap financing to support new developments, homeownership assistance, and safety and health-based home repairs. The city remains committed to helping more residents access safe, stable, and affordable housing options.

The city’s budget development process began in November 2024 with the first of five work sessions to review progress reports and financial information, and to identify City Council priorities for the upcoming year. These culminated in the City Manager’s recommended budget and a May 20 public hearing. City Council votes twice when adopting budgets, with the first vote occurring at its June 3 meeting and the second and final vote on June 17. The new budget is set to become effective on July 1, the first day of the city’s fiscal year.

Learn more about the FY26 city budget online at www.wilmingtonnc.gov/budget.