Morganton manager presents $95 million 2025-26 budget focused on Helene recovery; public hearing set for June 16

City Manager Sally Sandy presented the proposed fiscal year 2025-26 budget to Morganton City Council, outlining a $95,000,000 total budget that emphasizes recovery and rebuilding after Hurricane Helene and requests a public hearing on the proposal for Monday, June 16 at 6 p.m.

Sally Sandy said the proposed budget reflects continuing recovery work related to September's storm, describes capital spending planned for next year and seeks to balance fiscal prudence with rebuilding priorities. "We're looking at a pretty, I would call conservative budget when it comes to projects," Sandy said, noting a $24,000,000 capital program and a $10,000,000 allocation identified for a new public safety station on property swapped with the community college. She said the overall budget is lower than the prior year ($95,000,000 vs. about $106,000,000) largely because some projects were postponed to put money into a hurricane fund.

Key proposals and figures presented by the manager and finance staff include: - General fund: $43,600,000 (down about $4 million from the prior year's adopted budget); capital projects in the general fund total about $15.8 million. - Capital: $24,000,000 citywide, with the largest single item a proposed new public safety station estimated at $10,000,000 to be funded by state revenues, borrowing, or a combination. - Tax rate: Staff recommended keeping the property tax rate at $0.50 per $100 of assessed value. The downtown service district rate is proposed to remain at $0.12 per $100. - Utilities: A proposed 10% increase to water volume charges (volume-only, effective Aug. 1) and a proposed 5% increase to wastewater volume charges (effective Aug. 1); no proposed electric rate increase for the coming year. - ARPA and FEMA: The city reported it has obligated its ARPA allocation and used funds for infrastructure and park projects; the city has identified 29 FEMA project numbers related to Helene estimated at just over $45,000,000 and has received partial insurance and FEMA cash advances but has not yet been fully reimbursed.

Director of Finance Jesse Paris and other staff reviewed revenue assumptions (ad valorem taxes projected at $12.6 million, sales tax growth roughly 1.5 percent, occupancy tax at $200,000), capital priorities (stormwater repairs, North Green Street streetscape delayed into next year), and staffing/compensation proposals including a 3% cost-of-living adjustment for full-time city employees effective July 2025.

Council called for a public hearing on the proposed budget to be held on Monday, June 16 at 6 p.m. in council chambers; council approved the motion to set the hearing. No final budget ordinance was adopted at the June 2 meeting; the hearing allows public comment before council considers adoption.

Sandy and finance staff emphasized that large rebuilding projects tied to FEMA reimbursements are being phased because of contractor availability, pricing, and sequencing with the federal reimbursement process. The council will consider the budget after the scheduled public hearing.