OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

FY27 City Council Budget Work Session - May 19, 2026

City Council & Planning Commission — Tuesday, May 19, 2026
BodyWilmington, North Carolina
SessionCity Council & Planning Commission
DateTuesday, May 19, 2026
StatusFILED
Video Record
0:00 / 2:30:40

Transcript — Verbatim
0:01

I'll bring the meeting back to order.

0:03

Somebody settled.

0:04

It's Friday afternoon.

0:06

Okay.

0:07

Take a roll call.

0:08

Mayor Pro Tem, are you here?

0:10

Reluctantly, yes.

0:13

Council Member Joy, are you here?

0:15

Councilmember Andrews, are you here?

0:17

Councilmember Lau, you here?

0:18

Here.

0:18

Councilmember Santa Guida, are you here?

0:20

Here.

0:20

Councilmember Clinton Quintana, are you here?

0:23

I am in the flesh, sir.

0:25

The chair is here.

0:26

We're all here to counter for it.

0:27

I'll turn it back over to you, Ms.

0:28

Hulk.

0:30

Like sitting in a time share presentation.

0:35

All right.

0:36

Next question is why was there a 75% jump for reserved fund balance?

0:42

Laura has the details on this, but um really in general, this is to anticipate um increased fuel costs that we are experiencing across the city more than anything was uh the jump in that.

0:56

And so if those costs are needed, then those dollars will be allocated out to the departments as those needs arise.

1:06

Um but this is really kind of a central holding location for dollars that are needed to run our fleet.

1:14

Um in that fund, um, unfortunately, we occasionally have accidents and need to repair vehicles.

1:22

Um, and so the dollars sitting in this account help cover the cost of that because we are self-insured, so um we have to take on those costs ourselves.

1:34

Why the drop in interest earnings for the convention center?

1:38

Um we do operate as a multi-year fund for the convention center.

1:42

Um so we are just um looking at um less interest revenue in this upcoming fiscal year um interest earnings that are received but not appropriated, that stay those stay in the fund.

1:56

Um so we're just basically projecting an interest earnings amount.

1:59

If we exceed that, that would just go into the convention center fund balance for future use uh for something related to the convention center.

2:08

But you're you're projecting a 44% decrease in interest earnings period.

2:16

Sure.

2:17

Martha has raised her hand.

2:24

The convention center fund is a multi-year fund, and so what we're doing is we're projecting the interest rate earnings that we need in order to balance the budget.

2:35

The additional interest earnings that we may receive will still remain within that fund and we'll have the ability to budget in the future if needed.

2:44

So since this is a multi-year fund, it kind of operates a little bit different than the general fund with an annual basis, but those funds the revenue if we receive more will always be available.

2:55

And it but it stays within the convention center bucket.

2:58

Correct.

2:59

Okay.

3:00

I I just because it stays within that bucket.

3:04

I don't is this like we're having a highly conservative estimate for interest earnings, or this is explain to me this the multi-year nature of this.

3:12

Uh so this is just what's needed.

3:14

So with a multi-year um, like if we had savings one year, like last year, we could use some of that money because it would the available budget would still be there because it's not on an annual basis, and so it's more of a cumulative effect.

3:33

So this would be like cumulatively overall, this is what we need in the the fund this year.

3:40

So you so it's not that you think that the interest on this account is gonna earn 44% less than last year, it's that you're spending some of it down.

3:49

Uh it well, not necessarily down, but that is correct.

3:53

It's not that we think that the earnings will be 44% less.

3:57

It's cumulatively this is what we needed to balance the budget.

4:01

So we any interest earnings that are above what is currently budgeted are still going to be in that fund and available to appropriate if needed later in the fiscal year.

4:12

I understand now.

4:13

Thank you.

4:13

Martha, real quick, you when you invest that particular amount of money, you I know in the general fund you don't want to invest in anything over a five-year period.

4:24

I don't think you can.

4:25

In this particular fund, can you does it does it follow the same same guidelines?

4:30

Yes, we use the same principles.

4:34

Okay.

4:35

All right, thank you.

4:36

Thanks, Martha.

Discussion Breakdown — Share of Meeting
Parks and Recreation███████████████████████████27%
Public Safety█████████████13%
Engineering And Infrastructure████████████12%
Economic Development██████████10%
Fiscal Sustainability█████████9%
Parking Management██████6%
Technology and Innovation█████5%
Personnel Matters█████5%
Public Engagement███3%
Summary of Proceedings

FY27 City Council Budget Work Session - May 19, 2026

This work session was held to continue review of the City of Wilmington's FY27 recommended budget, addressing follow-up questions from prior sessions and receiving presentations on parks maintenance, capital improvement projects, police workload, and proposed fee schedule changes. City Manager Becky Hawke and staff provided detailed responses and analysis to support council's upcoming budget decisions.

Parks Maintenance Funding

  • Presenters: Sally Thigpen (Assistant Director of Landscaping), Darrell McCall (Assistant Director of Facilities Management), Mary Vigue (Deputy City Manager)
  • The Asset & Property Management Department has a proposed FY27 budget of $27.8 million, with 100 authorized positions (60 in landscape maintenance).
  • Maintenance levels vary: Level 1 (daily/weekly) for Riverfront Park, Level 2 (bi-weekly) for most parks, Level 3 (three-week) for medians and natural areas.
  • Greenfield Park has received $1.5M in capital maintenance investment over the last 10 years. Upcoming projects include restroom roof replacement, trail repair, and Lions Bridge reconstruction.
  • 34 park restrooms face challenges from vandalism, aging infrastructure, and staffing. Creative solutions include roll-up doors (installed at Abbey Park for $6,000 for two doors), stainless fixtures, and cameras (outside only). Staff is comfortable with the FY27 operating budget but expects future needs after a full year of data.

Review of Capital Improvement Projects

  • Presenters: Dennis LaCaria (Chief of Staff), Mike Naklicki (Division Manager, Design and Construction)
  • The proposed 0.41-cent portion of the tax increase funds debt service for completing existing CIP projects. Only one new project is included: $1 million for Greenville Loop Park design.
  • Projects with funding shortfalls include:
    • CFCC Bulkhead: $879,320 shortfall
    • Water Street Park (EDA grant package): $4,211,694 shortfall (total project $17.5M, 80-20 federal match)
    • Pine Grove Bridge replacement: $17,964,741 shortfall
    • Pine Grove North intersection: $11,903,869 shortfall
    • Water Street Park: $1,217,690 shortfall
    • Pine Grove South/Greenville Loop Trail Section 4: $14,038,730 shortfall
    • Kerr Avenue Trail: $1,747,207 shortfall
  • The Front Street Bridge rehabilitation and Wrightsville Avenue sidewalk/roundabout projects are under construction.

Police Workload and Pay Comparison

  • Presenter: Police Chief
  • From 2021–2025, Wilmington Police Department (WPD) handled 63% of all directed patrol calls in New Hanover County, averaging about 150,000 calls for service per year.
  • March 2025–March 2026 data shows approximately 384 calls per day, with peak hours 10 a.m. to 10 p.m. and Friday as the busiest day.
  • Calls per budgeted position: 487 for WPD, compared to lower ratios in neighboring agencies (e.g., Leland, Jacksonville, High Point, Asheville).
  • Part I crimes per budgeted position: WPD is among the highest (specific ranking noted but not exact in transcript).
  • Starting pay comparison: Leland leads at ~$58,600; WPD at ~$52,200, below the average of peer agencies. The proposed living wage adjustment aims to improve competitiveness and retention.
  • Hard-to-fill positions exist beyond police/fire, including fleet mechanics and equipment operators, due to private-sector wage competition.

Fee Schedule Changes

  • Presented by: Dylan (staff)
  • Golf fees: 18-hole local resident weekday walking fee increases from $33 to $35; 18-hole non-local from $43 to $45; punch card prices increased accordingly.
  • Parks and recreation fees increased to align with adopted cost recovery policy (tiers from 0–20% to 100%). Youth/single-day athletic events: from up to $60 to up to $100. Council expressed concerns about equity for underserved youth; staff noted a fee assistance program for households below 60% AMI.
  • Parking fees: Reduced on-street meter rates in outer downtown from $3.00 to $1.50/hour to encourage usage; new fees at 115 N. 3rd St. lot for after-hours parking.
  • Police off-duty contract rates increased to match New Hanover County Sheriff's Office ($56/hr for officers, plus $5/hr for supervisor; higher rates for short notice and holidays).
  • New film permit fees: $50 per permit or $500 per project per year for unlimited permits.
  • Stormwater fee: $8.97 to $9.27 per ERU (30-cent increase).

Living Wage and Tax Rate Discussion

  • Full living wage implementation would require 4.01 cents of the proposed 5.75-cent increase ($14.2M). Phased options: 75% (2.98 cents, $10.6M), 50% (1.94 cents, $6.9M).
  • Staff cautioned that less than full implementation would likely require an additional tax increase in FY28.
  • Tax rate comparison: Wilmington's current 28.25 cents is third lowest among peer cities; Greensboro is highest at 67.25 cents. For cities with comparable assessed value, Wilmington has the lowest tax rate.

Open Discussion and Council Proposals

  • Councilmember David Spears:
    • Proposed removing $29,000 for Clearview AI (facial recognition software) from the police budget until a citywide AI policy is adopted. Staff noted policy development is needed.
    • Proposed delaying a new $375,000 capital project in the parking fund (not affecting tax rate) – after clarification, he withdrew the objection.
    • Proposed reducing computer hardware replacement funding ($831,735) by extending replacement cycles from four to five years. Interim IT Director Jen Clift said analysis is possible.
  • Councilmember Kevin Spears:
    • Requested analysis on reducing the salary increase cap from $15,000 to $12,000 for living wage implementation. Staff will provide a CSV and recommendation.
  • Councilmember Clifford Barnett:
    • Requested data on hard-to-fill positions beyond police/fire, with private-sector pay comparisons.
  • Councilmember Jaylan Davis:
    • Proposed funding the North Carolina Film Partnership at $100,000, noting 200 jobs in New Hanover County and 7,000 statewide from ARPA-funded training. Several council members requested impact data on job placements, union integration, and county contributions. Staff to gather information.
  • Councilmember C.J. Spears:
    • Expressed concern about cost recovery policy impacts on underserved communities, asking for a comparison of athletic program fees and attendance across facilities.
  • Mayor Bill Saffo:
    • Asked for data on the number of individuals trained through the film partnership who have been hired by unions.
  • City Manager Becky Hawke:
    • Committed to providing follow-up analyses on all outstanding questions before the next budget work session.

Key Outcomes

  • No formal votes were taken; this was a discussion session to inform final budget decisions.
  • Staff will provide:
    • Analysis of reducing salary cap from $15,000 to $12,000 with CSV
    • List of hard-to-fill positions with pay comparisons
    • Data on film partnership job placements and county funding
    • Five-year computer replacement cycle cost differential
    • Impact reports and data on athletic program fees
  • The Clearview AI funding will be considered in the context of an upcoming AI policy discussion.
  • The budget will be further refined at subsequent work sessions and adopted by June.

Meeting Transcript

I'll bring the meeting back to order. Somebody settled. It's Friday afternoon. Okay. Take a roll call. Mayor Pro Tem, are you here? Reluctantly, yes. Council Member Joy, are you here? Councilmember Andrews, are you here? Councilmember Lau, you here? Here. Councilmember Santa Guida, are you here? Here. Councilmember Clinton Quintana, are you here? I am in the flesh, sir. The chair is here. We're all here to counter for it. I'll turn it back over to you, Ms. Hulk. Like sitting in a time share presentation. All right. Next question is why was there a 75% jump for reserved fund balance? Laura has the details on this, but um really in general, this is to anticipate um increased fuel costs that we are experiencing across the city more than anything was uh the jump in that. And so if those costs are needed, then those dollars will be allocated out to the departments as those needs arise. Um but this is really kind of a central holding location for dollars that are needed to run our fleet. Um in that fund, um, unfortunately, we occasionally have accidents and need to repair vehicles. Um, and so the dollars sitting in this account help cover the cost of that because we are self-insured, so um we have to take on those costs ourselves. Why the drop in interest earnings for the convention center? Um we do operate as a multi-year fund for the convention center. Um so we are just um looking at um less interest revenue in this upcoming fiscal year um interest earnings that are received but not appropriated, that stay those stay in the fund. Um so we're just basically projecting an interest earnings amount. If we exceed that, that would just go into the convention center fund balance for future use uh for something related to the convention center. But you're you're projecting a 44% decrease in interest earnings period. Sure. Martha has raised her hand. The convention center fund is a multi-year fund, and so what we're doing is we're projecting the interest rate earnings that we need in order to balance the budget. The additional interest earnings that we may receive will still remain within that fund and we'll have the ability to budget in the future if needed. So since this is a multi-year fund, it kind of operates a little bit different than the general fund with an annual basis, but those funds the revenue if we receive more will always be available. And it but it stays within the convention center bucket. Correct. Okay. I I just because it stays within that bucket. I don't is this like we're having a highly conservative estimate for interest earnings, or this is explain to me this the multi-year nature of this. Uh so this is just what's needed. So with a multi-year um, like if we had savings one year, like last year, we could use some of that money because it would the available budget would still be there because it's not on an annual basis, and so it's more of a cumulative effect. So this would be like cumulatively overall, this is what we need in the the fund this year. So you so it's not that you think that the interest on this account is gonna earn 44% less than last year, it's that you're spending some of it down. Uh it well, not necessarily down, but that is correct. It's not that we think that the earnings will be 44% less. It's cumulatively this is what we needed to balance the budget.

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