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Fuquay Varina holds public hearing on FY2026 budget; no adoption tonight as board weighs proposed utility rate increases
Summary
The town opened and closed a public hearing on the recommended FY2026 operating budget and five-year plan. Key points: no proposed property tax increase, a recommended 15% increase to water and sewer volumetric rates, proposed wastewater system development fee increase, and final adoption scheduled for June 2.
The Fuquay Varina Town Board on May 20 held a public hearing on the manager’s recommended fiscal year 2026 operating budget and five‑year plan but did not vote to adopt the budget; adoption was scheduled for the June 2 meeting.
Assistant Town Manager Mark Matthews summarized outreach and availability of budget materials and highlighted principal budget points: no proposed property tax rate increase (the rate would remain at 35.8 cents per $100 of assessed value), no sanitation fee increase, a recommended 15% increase to water and sewer volumetric rates, and a recommended increase to the sewer system development fee consistent with the earlier fee study. Matthews said the manager’s recommended general fund budget total is $76,565,157 and the Utility Fund operating budget is $34,386,973.
During public comment, resident Dan Ford of 1204 Garrow Drive urged the board to reject the proposal and objected to the proposed utility rate increase. Ford said that since his family moved to Fuquay Varina in January 2022, water and sewer charges would have risen roughly 74% under successive adjustments and estimated his household would pay about $500 more per year under the proposed increase; he asked the board to seek alternative funding, including contributions from large developers.
Board discussion referenced the system development fee study and statutory limits on SDF maximums. Assistant Town Manager Mark Matthews explained that under North Carolina statute the SDF formula sets the maximum allowable fees and that the town had hired Stantec to perform the analysis; he said the recommended fees included in the budget are the statutory maximums and that options for funding water and wastewater capacity are therefore limited to rate revenue and SDFs unless state law changes or different funding sources are secured. A commissioner asked a technical question about debt‑service calculations; staff offered to follow up outside the hearing and bring the detail to the next meeting.
Why it matters: the recommended utility rate increases and SDF adjustments fund planned capacity expansions for the town’s water and wastewater systems. The board did not adopt the budget at the hearing; members will consider adoption at the June 2 meeting after additional review and any follow-up staff responses.
