Matthews manager proposes 1.3¢ property tax rise, 6% pay plan in $37.6 million FY‑26 recommended budget

Town Manager Becky Hawk presented the manager’s recommended budget for fiscal year 2026 at the Matthews Board of Commissioners’ special meeting on May 12, laying out a plan that would raise the property tax rate 1.3¢ to finance debt service on $11,000,000 in general‑obligation bonds and that prioritizes employee compensation and maintaining services.

Hawk said the proposed tax change is “specifically to repay the debt service on the $11,000,000 in general obligation bonds that was issued earlier this year, predominantly for park projects.” She added that the recommendation includes a 3% cost‑of‑living adjustment and a separate 3% merit pool for staff, describing that as the town’s primary priority for the coming year.

The nut graf: The package would raise the town’s recommended FY‑26 budget from roughly $36.0 million in FY‑25 to about $37.6 million in FY‑26. The tax increase is targeted to cover bond debt service; other revenue changes include a previously approved stormwater fee increase and stronger‑than‑expected sales taxes. The manager emphasized the budget attempts to hold the line on other spending while preserving market‑competitive pay and basic capital needs.

Most important budget elements

- Property taxes and bonds: The recommended property tax rate would rise by 1.3¢ from 26.65¢ to 27.95¢ per $100 of valuation; Hawk said that increase is to repay the debt service on the $11,000,000 general‑obligation bond sold earlier this year. Using the town’s averages, Hawk showed an owner of a home with a taxable value near the town average of $429,000 would see an annual tax increase of about $55.81 (approximately $4.65…