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Morganton council adopts FY2025–26 budget, approves contracts and a series of funding measures
Summary
At a June special meeting, the Morganton City Council adopted its FY2025–26 budget and a package of related items including fee schedules, pay ranges, multiple budget amendments, contracts for infrastructure and services, and a resolution to seek state SRF grant funds for a regional water interconnection.
MORGANTON — The Morganton City Council at a June special meeting adopted the city’s fiscal year 2025–26 budget and approved a series of related ordinances, contract awards and budget amendments.
The council held a public hearing on the proposed FY2025–26 budget before voting to adopt a budget ordinance that keeps the regular tax rate at $0.50 per $100 of assessed value and maintains electric rates. The budget as presented included a 10% increase in water volume charges, a 5% increase in sewer volume charges, and a $5-per-month increase in the TV (Compass) portion of a monthly charge effective in January. The council also separately adopted the schedule of fees and charges and set pay ranges for the new fiscal year, which include a 3% cost-of-living adjustment.
Council members approved multiple budget amendments and related items needed to close out the current year and respond to Hurricane Helene. Actions included a general fund amendment of $507,000; a water fund amendment of $35,200; creation of a Hurricane Helene special revenue fund in the amount of $9,661,199 to receive reimbursements and other Helene-related proceeds; and a Helene capital projects fund amendment of $2,538,465 for project expenditures.
The council also approved awarding several contracts and professional services agreements discussed on the agenda: a storm drain replacement contract for 305 West Concord Street to Country Boy Landscaping Inc. for $629,643.17 with a contingency authorization up to $650,000; a contract to replace the HVAC control system at COMMA to Trane U.S. Inc. not to exceed $37,700; a contract with Wildlands Engineering for inspection and closeout services at Bethel Park for $88,130; an extension of the construction contract with Baker Grading and Landscaping for the Bethel Park restoration project to Dec. 31, 2025; and an annual tree-trimming contract to Davey Tree Experts at $134.30 per hour, not to exceed $225,000.
Other procedural items approved included: adoption of the 2025–2029 consolidated plan and the 2025 action plan for Community Development Block Grant (CDBG) entitlement funds, adoption of a project budget ordinance for the CDBG program, and approval of an administrative agreement with the Western Piedmont Council of Governments (COG) to administer the city’s CDBG entitlement program effective July 1, 2025.
The council also approved a proposed amendment to its cash-flow loan agreement with the State of North Carolina to allow the city to close the loan and repay under the amended terms. Finally, the council adopted a resolution authorizing staff to apply for state revolving fund (SRF) grant funding (American Rescue Act 2025 implementation) to study a potential water interconnection with nearby systems; staff said application details and cost estimates will be developed before the Aug. 1 deadline.
Votes recorded in the meeting were routine “aye” voice votes; the meeting transcript records no roll-call tallies with individual yes/no votes.
