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Board approves FY 2025–26 budget and bond-related tax increase after heated discussion over affordable housing funds
Summary
After hours of debate about using a set-aside reserved for affordable housing to offset the bond-related tax increase, the Matthews Board of Commissioners adopted the FY 2025–26 general fund, tourism and stormwater budgets and CIP. The vote was 4–3; opponents urged alternative uses of the town’s $968,000 affordable-housing balance.
The Matthews Board of Commissioners approved the fiscal year 2025–26 general fund, tourism and stormwater budgets, the capital improvement plan and the fee schedule on June 23, after a lengthy and at times contentious discussion about whether to apply a restricted affordable-housing set-aside to reduce the bond-related property-tax increase.
Acting on a manager’s recommended budget that included the debt service associated with a voter-approved parks and infrastructure bond, the board authorized a tax rate change that staff said corresponds to roughly a 1.3¢ property tax impact (per $100 of assessed value). Interim Town Manager Kurt Walton provided a written observation recommending the budget’s adoption; finance director Theresa reported that sales tax receipts remained strong and that overall town fiscal metrics were healthy.
A central point of contention was $968,280 the town holds from a previous $1.5 million allocation earmarked for affordable housing. Mayor Pro Tem Gina Hoover proposed using $1,000,000 from the remaining funds to offset a portion of the tax increase for a single year so residents would have additional time to prepare. Supporters of keeping the set-aside intact argued the money was pledged publicly for affordable-housing initiatives, including a proposed land purchase (Stillwell property) and potential veteran housing, and that spending it now would jeopardize those planned uses.
Commissioner Ken McCool, among others, urged the board to hold the affordable-housing funds for their intended purpose and warned that the bond program’s costs and construction inflation could grow if the town delayed projects. Others, including Mayor Pro Tem Hoover and Commissioner who opposed the adopted budget, argued a one-year relief would help residents facing cumulative cost pressures (county property tax, stormwater adjustments, school bonds) and buy time while staff sought longer-term solutions.
After discussion and several amendments to fund a communications role and other line items as described in staff materials, the board voted 4–3 to adopt the budgets and CIP. The meeting minutes show the measure passed with four votes in favor and three opposed; the clerk recorded the item as approved. Commissioners joining the majority said the budgets balance town service needs, safety staffing and the bond program without excessive draws on reserves; those in dissent said they would have preferred alternatives to raising the property tax rate.
Staff will proceed with CIP initiatives, park design procurement and bond-related contracts and will return public audit and HUD-related documentation (for the Stillwell inquiry) to the board as requested.
