OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

FY27 Budget Work-Session – June 1, 2026

City Council & Planning Commission — Monday, June 1, 2026
BodyWilmington, North Carolina
SessionCity Council & Planning Commission
DateMonday, June 1, 2026
StatusFILED
Video Record
0:00 / 3:50:30

Transcript — Verbatim
0:01

All right, we'll bring the meeting back to order.

0:04

Okay, Mayor Protein will do the road call.

0:06

Are you here?

0:10

Mayor Pro Tem.

0:13

Councilmember Joyner.

0:14

Here.

0:15

Councilmember Andrews.

0:16

Here.

0:16

Councilmember Lau.

0:18

Councilmember Santa Guido here.

0:20

Councilmember Clinton Quintana.

0:22

Chairs here.

0:23

Everybody's going to counterfor.

0:24

Turn back to the city.

0:25

Yeah.

0:26

I got you here.

0:27

Okay.

0:28

Okay.

0:29

Thank you.

0:29

We are going to pivot just a little bit, talk about the unsheltered populations update because that may drive some of the other budget conversations.

0:36

So I will turn it over to Rachel Schuler.

0:39

Good afternoon.

0:40

Thank you.

0:41

So just to get started, we've talked a little bit about homelessness, exiting homelessness.

0:49

I think it's always important for us to talk about the ways that you literally exit homelessness as part of this context.

0:55

And so there are generally three ways.

0:57

One is self-resolved, rapid exit.

0:59

That's for the folks who may just need uh to get back in touch with family.

1:04

It may be someone who just needs to have a month of their mortgage paid, whatever it may be, their rent, whatever it may be that small interventions.

1:13

A little bit uh next step is that rapid rehousing.

1:16

That's usually up to about three months of rental assistance, down payment assistance, things like that, uh deposits, just to get someone situated, and then they're pretty self-sufficient moving on.

1:28

And when I say self-sufficient, that may include on vouchers, uh housing toys vouchers or other things like that.

1:35

Uh and then permanent supportive housing is the most um comprehensive where you're talking about the actual units and the rental assistance and that, as well as the wraparound services uh due to the chronic mental and physical disabilities that are associated with the folks who are in that population.

1:54

So uh back in September of 2024, council and the Board of Commissioners were presented the shelter uh strategy.

2:02

We call it the strategy to address unsheltered homelessness.

2:05

This strategy was put together with a number of our partner agencies as well as New Hanover County over the course of several months from March to September, uh, where we did a lot of deep diving into the problem, hearing from those with lived experiences, looking at paths forwards and defining what success would look like.

2:25

This plan was a collaborative effort through those partner agencies and the county with all of the different uh players having a different role in this strategy and the outcomes.

2:36

So just a brief refresh on what that looked like.

2:40

Um we had the low barrier options shown here are the outcomes, objectives, and progress measures.

2:46

As you can see, some of these um progress measures and even outcomes, some are not necessarily um something that you can just put funding behind, but rather systematic um and process changes that go along with that.

3:00

When we talk about empowerment courts, um, I know council member joyner could speak a little bit more than I could on what that looks like.

3:07

But when you're speaking about the folks who are um in that situation due to homelessness, there are not typically lengthy sentences like there may be for drugs or um some other different situations that those empowerment courts have helped to be successful.

3:26

And so while this is there are some communities that have what they call homeless court, um, a lot of what that looks at is connecting people to services at those um places, and so while there obviously are financial um implications of some of those relationships, a lot of that is just that the partnerships, relationships, being at court, being able to make those referrals to get to those folks' house, and again, there's not necessarily a dollar amount you can associate with that, but just rather that larger systematic change.

3:58

Um again, looking at the 911 calls uh for people who are homeless, that really came out with how the county was tracking calls, and so again, it's it's looking at the overall system approach of not looking to arrest your way out of a homelessness problem, but rather intervening in different ways.

4:18

And so when we look at how we interact with our social workers and some of those uh street outreach teams and offering the community solutions of um who to call rather than just the police.

4:30

Are there agencies that we can call?

4:32

Are there people that they can call instead of just the um that 911?

4:37

Um when we look at the caseload capacity, a big piece of that is how we move people through the system.

4:44

When I say system, I mean the um homeless services system.

4:47

So when folks are in, say a good shepherd, and if you have a case manager who has a case of 75, it's going to be very difficult to pour in and assist those 75 individuals.

5:00

When we are able to get people out of shelters and into permanent housing, that's going to reduce what their caseload is.

5:06

And so again, the solution is not necessarily always just additional case managers, but it's sometimes funding programs like rapid rehousing or housing units to get folks into that so that way that they can have the ongoing case management when they're not worrying about the day-to-day needs as well.

5:24

And so moving on to some of the comprehensive day services and overnight shelter capacity.

5:42

As far as case management through coordinated entry, a lot of that is through a system that a lot of other communities have used.

5:51

I'm not sure if you've heard of it before, but it's case counseling.

5:54

And so when you're looking at the different ways that people are in coordinated entry, which is how anyone who's looking for that permanent housing is on this list, they meet together twice a twice a month.

6:07

The agencies of how can we place these folks?

6:09

It's talking about the individual needs of those people to figure out what's the right connection agency, et cetera.

6:17

When we talk about the gaps in services or surrounding the point in time numbers, in your packet are the updated continuum of care point and time numbers.

6:27

What's interesting about it is we've talked about this in the past too, where a lot of that is during since it's in that last time in J that last week in January, it's cold weather.

Discussion Breakdown — Share of Meeting
Homelessness█████████████████████21%
Budget Equity Analysis███████████████15%
Technology and Innovation██████████████14%
Fiscal Sustainability██████████10%
Affordable Housing█████████9%
Public Safety███████7%
Personnel Matters███████7%
Engineering And Infrastructure████4%
Community Engagement███3%
Summary of Proceedings

FY27 Budget Work-Session – June 1, 2026

Note: The agenda listed this meeting as May 29, 2026, but the official instruction for this summary specifies the meeting date as June 1, 2026.

The City Council held a budget work-session to review the FY27 Recommended Budget, discuss strategic initiatives, and reach consensus on adjustments to the proposed tax rate. The session included presentations on homelessness strategy, Vision Zero projects, a detailed line-item review of general fund departments, and follow-up questions from the previous work-session. The Council aimed to reduce the proposed tax increase while maintaining core services and investments.

Consent Calendar

  • None. This was a work-session without a consent agenda.

Public Comments & Testimony

  • No public comments were taken during the work-session; the public hearing had been held earlier.

Q&A Review (City Manager’s Office)

  • Film Partnership: The NC Film Partnership reported that since 2021, over 50% of participants in its workforce development initiatives have been New Hanover County residents. Over 80 professional film and television experts have served as mentors.
  • Living Wage Cap: Reducing the $15,000 cap to $12,000 would disproportionately affect employees near or above the Area Median Income (AMI) benchmark of $75,885. The original cap was designed as 20% of AMI to maintain proportional adjustments across pay scales.
  • Property Tax Appeals: As of May 2026, 54 active appeals represent approximately $68.9 million in potential assessed value changes; 93 closed appeals resulted in $50.1 million in reductions. Residential properties account for the majority of appeals by volume, but industrial and commercial appeals have higher per-case value impacts.
  • Tax Exemptions: Approximately $5.59 billion in property value is exempt from taxation, with government properties ($2.83B) and charitable hospital properties ($1.25B) as the largest categories.
  • Revaluation Timeline: Appeals were due by May 14, 2026; the Board of Equalization and Review is expected to complete its review by June 30, 2026.
  • Police & Fire Costs: Estimated cost to outfit a firefighter recruit is $37,359; to hire and fully equip a police officer is $192,285.
  • Retirement Eligibility: Approximately 5% of Police and Fire personnel are eligible for full retirement within one year, 17% within five years.
  • Hard-to-Fill Positions: Equipment Operator I-IV positions have been vacant for an average of 175 to 795 days; City pay lags behind market averages by $4,000–$8,000 per year for these roles.
  • Traffic Counts: Pine Grove Drive north of Oleander: 8,600 AADT; south of Oleander: 17,000 AADT. Pine Grove at Greenville Loop: 14,000 north, 21,000 south.
  • Vision Zero Projects: The city is formalizing a Vision Zero Task Force. Proposed FY27 projects include speed hump installations on multiple streets and permanent curb extensions on Market/3rd Street and Racine/College Acres Drive.
  • City Attorney’s Office: All attorneys now advise specific departments rather than specializing by practice area. Outside counsel is used for workers' compensation, large condemnation matters, title opinions, insurance-assigned lawsuits, and bond counsel.

Homelessness Strategy (Rachel Schuler, Director of Community Building)

  • Update on Unsheltered Population: The 2026 Point-in-Time Count recorded 610 individuals experiencing homelessness, up from 506 in 2025. The increase is partly attributed to expanded shelter capacity (Salvation Army reopening, new transitional beds) and improved outreach during cold weather.
  • Continuum of Care (CoC) Performance: The return-to-homelessness rate is 4%, and the exit-to-permanent-housing retention rate is 95% — both strong metrics. The CoC’s system performance score has nearly doubled from 90 to ~180 over two years.
  • Current City Investments (FY26): Total $1,133,134, including $500,000 for WPD social workers, $194,376 for the Getting Home Street Outreach, $88,454 for WDI Block by Block, $134,188 in CDBG funding, $73,116 to the CoC, and $143,000 in human service funding.
  • Low-Barrier Shelter Progress: A Request for Information (RFI) issued in January 2026 received six responses. Staff are moving forward with conversations with LINC, exploring site locations and budget needs. A Council site visit to similar projects in other communities is planned.
  • Estimated Costs for Full Strategy: Approximately $26 million total, including $7.6M for new permanent supportive housing (e.g., SECU The Sparrow, 32 units), $2.6M annual rent for scattered-site housing, $12M for new shelter construction, and $625,000 annual shelter operating costs.
  • Discussion: Council members expressed support for expanding day shelter services (Living Hope may lose its space), leveraging partnerships with the Housing Authority (Hillcrest and Houston Moore redevelopment), and considering structural changes to the CoC (e.g., the City becoming the lead agency). Several members emphasized the need for data on specific population needs (e.g., behavioral health, opioid dependency) to unlock targeted funding.
  • Council Positions: General support for continued investment in affordable housing and homelessness services. Some members urged exploring a Wilmington-centric CoC to better align resources with local needs.

Vision Zero Projects/Plans for FY27 (Justin Carter, Director of Design & Construction)

  • Completed Projects: 10th & Grace intersection improvements (ARPA-funded), slurry seal paving at Archie Blue Park.
  • In-Progress Projects: Burnett Blvd speed humps (4 of 9 completed, estimated finish June 5); Tanbridge Road speed humps scheduled for June 15.
  • In Design: Conversion of temporary curb extensions on Market/3rd to permanent; temporary median on Racine Dr/College Acres Dr to permanent.
  • Community Engagement: First meeting held with Pine Valley East neighborhood on April 28, 2026; second meeting scheduled August 5. City-wide engagement planned for late 2026/2027.
  • FY27 Workplan Snapshot: Projects include CFCC Bulkhead ($879k gap), Water Street Bulkhead ($4.2M gap), Pine Grove Bridge ($18M gap), 3rd/Ann Traffic Signal (NCDOT), and others. Many projects have funding gaps or are in feasibility/design stages.

MSD Budget Review (Municipal Service District)

  • The FY27 MSD tax rate remains at 5 cents per $100 assessed value. The estimated assessed value is $1.35 billion (down 2.59% from FY26 due to reappraisal appeals). The professional services contract with Wilmington Downtown Inc. is authorized at $657,517, an increase of $16,434 for management fees, labor, and the Downtown Business Alliance Trolley Tour.

Line-Item Budget Review (General Fund Departments)

Council reviewed operating budgets for most general fund departments, focusing on personnel and operating costs. Key discussions and consensus items:

  • Council Pay: A proposed 20% stipend increase (from ~$22,000 to ~$26,000; Mayor to $31,783) was debated. Some members opposed the increase; others argued it is necessary to attract diverse candidates. No consensus was reached; the item was placed in the "discuss" column but later one member stated support for keeping the increase.
  • City Clerk, City Manager, City Attorney: Salaries are set directly by Council and are not part of the living wage increase. Operating budgets are flat or reduced.
  • Communications & Engagement: A $70,000 operating increase is offset by a $30,000 decrease in production; the net $40,000 is due to shifting newsletter costs from a sundry account into the department – not new money.
  • IT Department: Three new positions proposed (security risk officer, two public safety support) at a total of $517,496. Council debated but did not reach consensus; placed in "discuss" column. However, a consensus was reached to reduce the computer replacement budget by $40,000 by extending replacement cycles on some equipment.
  • Design & Construction: Survey equipment line reduced from $33,500 to $5,000 (savings $28,500), leaving enough for calibration.
  • Police Department: Consensus to remove ClearView AI subscription ($29,000). Also, a federal grant for ballistic vests was lost; Council agreed to add back $125,621 to cover the full cost of vests. Training per employee increased from $514 to $1,215; Chief explained the need for specialized training. Mounted patrol program costs are lower than previously estimated.
  • Fire Department: Mission Ready Gear (one-time cost of $378,000) will be funded from fund balance rather than the tax rate, after Council discussion.
  • Community Investment Program (Nonprofit Grants): Proposed at $783,466. Some members suggested reducing to $700,000 or holding at current levels; others opposed cuts. Placed in "discuss" column.
  • Affordable Housing Fund (0.67 cents): Multiple members expressed strong support for maintaining the current allocation (approx. $2.5 million), citing its leverage of other funding.
  • Fund Balance: The unassigned fund balance is projected at 24.64% (after FY26 appropriations). Council discussed using up to ~$378,000 of fund balance for the mission ready gear, which would keep the balance within the 20-25% policy range.

Key Outcomes

  • Tax Rate Consensus: Council reached a tentative consensus on a property tax rate of 5.5 cents per $100 assessed value (down from the recommended 5.75 cents), based on the following adjustments:
    • Remove ClearView AI: -$29,000
    • Reduce computer replacement: -$40,000
    • Reduce survey equipment: -$28,500
    • Add back ballistic vest grant loss: +$125,621
    • Fund Mission Ready Gear from fund balance: -$378,000 (one-time, not tax-rate funded)
    • Implement Living Wage Alternative 1: $15,000 cap for public safety, $12,000 cap for all other employees (this saved approximately $0.14 from the tax rate)
  • Parking Fee Adjustment: Staff will bring a fee schedule amendment to restore one hour of free parking in downtown decks, offset by an increase in special event parking fees (net zero revenue impact).
  • Next Steps: The City Manager will prepare an amended budget ordinance reflecting the above changes for introduction at the June 2 (Tuesday) Council meeting. A second reading and final adoption will occur at the June meeting. Council contingency funds ($135,000) remain available for potential allocations to the NC Film Partnership or the Community Justice Center, to be decided later.
  • Straw Polls: The three IT positions and the council pay increase remain under discussion; no final decision was made.

Meeting Transcript

All right, we'll bring the meeting back to order. Okay, Mayor Protein will do the road call. Are you here? Mayor Pro Tem. Councilmember Joyner. Here. Councilmember Andrews. Here. Councilmember Lau. Councilmember Santa Guido here. Councilmember Clinton Quintana. Chairs here. Everybody's going to counterfor. Turn back to the city. Yeah. I got you here. Okay. Okay. Thank you. We are going to pivot just a little bit, talk about the unsheltered populations update because that may drive some of the other budget conversations. So I will turn it over to Rachel Schuler. Good afternoon. Thank you. So just to get started, we've talked a little bit about homelessness, exiting homelessness. I think it's always important for us to talk about the ways that you literally exit homelessness as part of this context. And so there are generally three ways. One is self-resolved, rapid exit. That's for the folks who may just need uh to get back in touch with family. It may be someone who just needs to have a month of their mortgage paid, whatever it may be, their rent, whatever it may be that small interventions. A little bit uh next step is that rapid rehousing. That's usually up to about three months of rental assistance, down payment assistance, things like that, uh deposits, just to get someone situated, and then they're pretty self-sufficient moving on. And when I say self-sufficient, that may include on vouchers, uh housing toys vouchers or other things like that. Uh and then permanent supportive housing is the most um comprehensive where you're talking about the actual units and the rental assistance and that, as well as the wraparound services uh due to the chronic mental and physical disabilities that are associated with the folks who are in that population. So uh back in September of 2024, council and the Board of Commissioners were presented the shelter uh strategy. We call it the strategy to address unsheltered homelessness. This strategy was put together with a number of our partner agencies as well as New Hanover County over the course of several months from March to September, uh, where we did a lot of deep diving into the problem, hearing from those with lived experiences, looking at paths forwards and defining what success would look like. This plan was a collaborative effort through those partner agencies and the county with all of the different uh players having a different role in this strategy and the outcomes. So just a brief refresh on what that looked like. Um we had the low barrier options shown here are the outcomes, objectives, and progress measures. As you can see, some of these um progress measures and even outcomes, some are not necessarily um something that you can just put funding behind, but rather systematic um and process changes that go along with that. When we talk about empowerment courts, um, I know council member joyner could speak a little bit more than I could on what that looks like. But when you're speaking about the folks who are um in that situation due to homelessness, there are not typically lengthy sentences like there may be for drugs or um some other different situations that those empowerment courts have helped to be successful. And so while this is there are some communities that have what they call homeless court, um, a lot of what that looks at is connecting people to services at those um places, and so while there obviously are financial um implications of some of those relationships, a lot of that is just that the partnerships, relationships, being at court, being able to make those referrals to get to those folks' house, and again, there's not necessarily a dollar amount you can associate with that, but just rather that larger systematic change. Um again, looking at the 911 calls uh for people who are homeless, that really came out with how the county was tracking calls, and so again, it's it's looking at the overall system approach of not looking to arrest your way out of a homelessness problem, but rather intervening in different ways. And so when we look at how we interact with our social workers and some of those uh street outreach teams and offering the community solutions of um who to call rather than just the police. Are there agencies that we can call? Are there people that they can call instead of just the um that 911? Um when we look at the caseload capacity, a big piece of that is how we move people through the system. When I say system, I mean the um homeless services system. So when folks are in, say a good shepherd, and if you have a case manager who has a case of 75, it's going to be very difficult to pour in and assist those 75 individuals.

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