Fuquay Varina releases $76.6 million FY26 budget recommendation; no property tax increase, 15% water/sewer rate hike proposed

Town Manager Adam Mitchell presented Fuquay Varina's recommended fiscal year 2026 operating budget and five-year capital plan, a $76,565,157 proposal that staff says is balanced and does not include a property tax increase.

Mitchell asked the board to schedule a public hearing on the recommended FY26 budget for May 20 and said the town will continue to host materials online for public review. "The fiscal year '26 recommended budget totals $76,565,157," Mitchell said, adding that the recommendation "does not include a property tax rate increase or a change in solid waste fees." The board voted to schedule the May 20 public hearing.

The draft budget recommends a planned 15% increase in water and sewer base and volumetric rates, consistent with the town's utility rate model, and an increase to the sewer system development fee based on a recent study. Mitchell said the rate changes are intended to cover water supply, wastewater treatment, and debt service tied to major utility infrastructure investments included in the five-year plan.

Major projects and investments described in the presentation include Fuquay Varina's participation in the Sanford Water Filtration Expansion (6 million gallons per day), a 14-mile conveyance line partnership with Holly Springs, the Terrible Creek Wastewater Treatment Plant expansion (doubling to 6 million gpd, expected 2027), a planned 1 million-gallon elevated water storage tank, and a $13.5 million public service center expansion scheduled to begin in FY26. Mitchell said the five-year plan anticipates annual water and sewer volumetric rate increases to cover supplier cost increases and debt service but does not identify a need for tax-rate increases in the five-year window.

The five-year transportation plan in the presentation totals roughly $63 million and lists 18 projects, including intersection improvements at Bass Lake, Sunset Lake and Hilltop, Needmore, Old Honeycutt and Highway 55, Old Honeycutt and Kennebec Road, and a phase 2 widening of Sunset Lake Road. Mitchell said projects will include pedestrian accommodations.

Mitchell noted the town used community engagement ("Let's Talk FV" platform) and a public budget workshop on April 15 to gather input. He also referenced a budget video and the budget message posted online, and recommended the board schedule the public hearing as required by North Carolina General Statutes. "A balanced budget and five-year operating and capital plan were presented along with identified human resource needs, facilities, and capital equipment to maintain service levels," Mitchell said.

During the meeting, the board moved and seconded a motion to schedule the May 20 public hearing; the motion passed. Staff said materials will remain available online through May 20 and final action on the budget is expected in early June.

Clarifying details: total recommended budget $76,565,157; no proposed property tax rate increase; 15% water and sewer base and volumetric rate increase proposed for FY26; public hearing scheduled for May 20, 2025; system development fee update posted for 45-day review; five-year plan balanced and does not identify tax-rate increases over the five years.

Ending: The board scheduled the May 20 public hearing; staff will present final recommendations, fee schedule and the budget ordinance for adoption at the June meeting.