Wilmington City Council FY27 Budget Work Session – June 1, 2026

Note: The official minutes date this meeting as May 29, 2026, but the user instructs to use June 1, 2026. This summary follows the user's directive.

The Wilmington City Council held a special budget work session on June 1, 2026, to review the proposed FY27 budget, receive staff responses to prior questions, and discuss potential adjustments to the tax rate and spending. The meeting included detailed reviews of revaluation appeals, property tax exemptions, public safety costs, workforce challenges, parks fees, the Skyline Center debt, living wage implementation, and a line-by-line review of general fund departments. Council members expressed a range of positions on the proposed 5.75-cent tax rate increase, with no final vote taken; staff were directed to bring back a revised ordinance reflecting a 5.5-cent increase and specific adjustments.

Revaluation Appeals and Property Tax Exemptions

• City Manager Becky Hawke reported that 54 active appeals remain, representing approximately $68.9 million in potential assessed value changes, while 93 closed appeals resulted in $50.1 million in reductions. A single residential property valued over $50 million accounted for $30.3 million of that reduction.
• Approximately $5.6 billion in property value is tax-exempt within city limits, including $2.83 billion in government-owned properties, $1.25 billion in charitable hospital properties, and $357 million in religious properties.
• The deadline for appeals was May 14, 2026, with final Board of Equalization and Review decisions expected by June 30, 2026, after the budget adoption.

Public Safety and Workforce

• The estimated cost to outfit a firefighter recruit is $37,359; a police officer costs $192,285, largely due to individual patrol vehicles.
• About 5% of police and fire personnel are eligible for full retirement within one year, and 17% within five years.
• Hard-to-fill positions include Equipment Operators (vacant 175–795 days) and ITS Technicians (vacant 111 days); city pay lags behind market averages by 5–20%.
• 28% of city employees live within city limits (16.7% of police, 33% of fire).
• Councilmember Chakema Clinton-Quintana urged better local recruitment and workforce development, including outreach to community colleges and formerly incarcerated individuals. City Manager Hawke acknowledged the need for a comprehensive recruitment plan.

Parks and Recreation Fees

• Staff proposed increasing the youth and adult single-day event fee from $60 to $100, driven by benchmarking for SWAC basketball tournaments. No single-day events were held in FY26.
• After discussion, Council reached consensus to keep the fee at $60 for FY27 and conduct a usage and cost-recovery analysis before next year. Councilmember Cassidy Santaguida requested data to support future fee recommendations.
• The fee assistance program (50% reduction for households below 60% AMI) and sibling discount will continue.

Skyline Center Debt

• City Manager Hawke clarified that the proposed 0.41-cent tax increase for CIP is unrelated to the Skyline Center purchase. The city is five years ahead of schedule on debt repayment, with $40.29 million remaining ($15.32 million to be paid by parking fund, $24.97 million from general fund). The building is 90–95% occupied, generating about $3.7 million in annual rent revenue dedicated to facility maintenance.
• Mayor Bill Saffo noted that the city has sold several parcels and plans to sell remaining downtown parcels intentionally after completing a master plan and a needs analysis for Live Oak Bank Pavilion.

Living Wage Implementation

• The proposed living wage adjustment includes a $15,000 cap on increases for employees earning above $75,885 (20% of AMI). Reducing the cap to $12,000 would create compression, affecting 85+ police and fire personnel and limiting promotion increases to 7–8% instead of 10%.
• Cumulative inflation since FY22 has eroded buying power; the proposed 20% market adjustment with a $15,000 cap would bring police and fire earning under $75,000 to a net positive 21.9% over inflation, while non-executives earning $75,000–$100,000 would see net gains of 6.4–11.4%.
• Councilmember David Joyner stated his top priority is CIP projects; he supports the living wage but is not comfortable with a 5.75% tax rate increase, suggesting 4.9% instead. Councilmember Santaguida also opposed 5.75% and proposed finding $2 million in general fund cuts. Mayor Pro-Tem Kevin Spears indicated he was thinking around half of 5.75% (approx. 2.875%). Councilmember Clifford Lyle supported keeping the CIP allocation intact and suggested small cuts across departments. Councilmember Salette Andrews agreed with not borrowing for ongoing expenses and keeping CIP. Councilmember Clinton-Quintana advocated for a department-by-department review.
• Council discussed possible cuts: eliminating Clearview AI subscription ($29,000), extending laptop replacement cycles ($40,000), reducing survey equipment ($28,500, keeping $5,000), and adding $125,621 for bulletproof vests due to a federal grant loss. Using $378,000 from fund balance for mission-ready gear was proposed.

Budget Line-Item Review

• Staff presented a line-by-line review of general fund departments. Key items:
  • Council salary increase: $33,660 proposed (from FY22 study). Some members opposed, but Clinton-Quintana and Andrews supported keeping it, noting it is their only salary or primary income. No consensus reached.
  • IT: agreement to remove $40,000 for computer replacement by shifting to a five-year cycle.
  • Police training budget increased significantly due to previous underfunding.
  • Utilities budget combined into one line; significant cost increases noted.
• Staff offered three alternative tax rate scenarios: Alternative 1 ($15,000 cap for all, 5.61¢ increase), Alternative 2 ($12,000 cap for all, 5.44¢), Alternative 3 ($15,000 for public safety, 2.8% for others, 3.87¢). Staff recommended the proposed 5.75¢ with $15,000 cap.

Homelessness Strategy

• Rachel Schuler, Director of Community Building, presented a $26 million plan to address homelessness. Key metrics: current return-to-homelessness rate is 4%, exit to permanent housing retention is 95%. The plan includes landlord engagement, additional staff, rapid re-housing, and permanent supportive housing. The Good Shepherd's Sparrow project will track 32 residents long-term.

Key Outcomes

• Consensus on Parks Fee: Keep the single-day event fee at $60; staff to provide usage and cost-recovery analysis next year.
• Direction to Staff: Bring a revised budget ordinance reflecting a 5.5-cent tax rate increase, including the following adjustments:
  • Reduction of Clearview AI subscription ($29,000)
  • Reduction of technology fund for computer replacement ($40,000)
  • Reduction of survey equipment to $5,000 ($28,500 savings)
  • Addition of $125,621 for bulletproof vests due to grant loss
  • Use of $378,000 from fund balance for mission-ready gear
• No final vote on the budget; first reading will occur at the next meeting (June 2026) after the amended ordinance is presented.
• No decision on Council salary increase; further discussion deferred.
• No decision on Film Partnership or CJC funding requests ($100,000 each); Council contingency funds may be used after July 1.
• Parking: Staff will include a fee schedule change restoring one hour of free parking in Market and Second Street decks, offset by increased special event fees.
• Future: A Vision Zero Task Force will be formalized to prioritize safety projects; a downtown master plan and Live Oak Bank Pavilion needs analysis are underway.