City Council approves first reading of operating budget, development agreements and pilot transit talks; multiple resolutions pass unanimously

The Spartanburg City Council on Monday approved several items including first reading of the city’s 2025–26 operating budget, a $70,000 roadway improvements contract, authorization to negotiate a microtransit pilot with VIA, and multiple development- and property-related resolutions.

At the meeting council approved the operating budget for July 1, 2025–June 30, 2026 on first reading after a public hearing. Chris Story, city manager, told council the proposed budget reflects general fund revenue growth of “just under 5%” and that the single largest increase in proposed expenditures is personnel costs. Story said the budget would include a 3% across-the-board wage increase for roughly 420 full-time employees and that the city would absorb an estimated 11.8% increase in medical insurance premiums rather than pass that cost to employees.

“ The single largest item of increased expenditure would be in the area of personnel cost,” Story said. He also said roughly $36,000,000 of the city’s approximately $56,000,000 general fund supports the core services of police, fire and public works.

Council also passed an ordinance to levy taxes for fiscal year 2025–26; the millage rate was left unchanged at 103.2 mills as presented by the city’s tax official.

Other formal actions taken at the meeting included:

- Roadway improvements: Council accepted a single bid from Community First Developers LLC of Anderson for $70,000 and authorized the city manager to execute a contract to complete the 2025 roadway improvements project, funded in part by CTC and state monies.

- Microtransit pilot: Council authorized the city manager to enter negotiations with VIA (VIA Transit) to develop a microtransit pilot. Staff said available grant funding — approximately $400,000 from COVID-related grant dollars that can be reimbursed — would cover the pilot's initial fiscal scope.

- Van Rock Properties multi-county park: Council approved a resolution consenting to placement of certain properties in a joint industrial and business park to allow a fee-in-lieu tax arrangement tied to a development agreement for what staff said would be about 95 townhomes; the arrangement includes a fee schedule with an approximate 60% tax discount in year one stepping down to roughly a 10% discount by year ten.

- Drayton Townhomes: Council authorized execution of a development agreement with Drayton Townhomes LLC for an approximately $22,000,000 investment that staff said would build 88 market-rate townhomes and 12 workforce units adjacent to Drayton Road and Scott Scotland Drive.

- Bethlehem Center property: Council authorized a conveyance of city-owned property to the Bethlehem Center (a nonprofit) at no cost, subject to a development timeline; staff said the deed would revert to the city if the nonprofit fails to meet development milestones (staff cited a three-year development window in the draft agreement).

All motions on those items were recorded as approved; the meeting transcript records the votes as “Aye” with no recorded oppositions.

Several council members asked detailed budget questions before the vote, including staffing and recruitment plans for police and public works, the addition of part-time parking attendants for stadium operations (14 positions listed in the personnel schedule), and a planned senior planner and controller position in finance. Staff said vacancies in public works, police and fire currently exist and that filling current authorized positions remains a priority; additional headcount could be considered if retention and recruitment indicate a need.

Council also discussed funding for Morgan Square improvements: staff said the project is planned to be financed from hospitality tax revenue and debt issuance tied to that revenue stream, with a capital project reserve in the hospitality tax fund to support the financing.

The council adjourned the regular session after approving a motion to enter executive session.