Wake Forest presents FY 2026 proposed operating budget with no property tax rate increase

Town staff presented the Town of Wake Forest’s proposed fiscal year 2026 operating budget on Tuesday, saying the proposal leaves the property tax rate unchanged and spreads growth across personnel, operating and capital costs.

The manager’s recommended budget approaches $94 million for the general fund — about 5% above the current year’s amended budget — and the all‑fund summary is just above $139 million, according to staff. The recommended property tax rate stays at $0.42 per $100 of assessed value; staff said the town expects 3.42% organic growth in the tax base for FY 2026 and is using a 98.5% collection rate in its estimates.

Staff said sales tax revenue is budgeted at $17 million for FY 2026, representing roughly 18.1% of general fund revenue, and noted the FY 2025 year‑end estimate is about 3.74% above the FY 2025 budget. The town is budgeting conservatively — staff said the FY 2026 sales tax figure is about 2.5% above the FY 2025 estimate and slightly below statewide projections published by the league of municipalities.

The budget includes 18 new authorized positions: 13 in the general fund and five in the newly implemented stormwater utility fund. Staff said five positions are tied to the Wake Forest Center for Active Aging (four transferring from the center and one new director position). The stormwater utility’s first year is budgeted at about $3.6 million; staff said the fund is expected to show a surplus in year one and that the board will consider creating a capital reserve fund to capture those funds for future stormwater projects.

Electric utility operations are budgeted at just under $28 million. Staff proposed a 3% increase to the residential energy charge for FY 2026 — the continuation of a strategy of smaller, incremental rate adjustments — and said funds are included for an additional cost‑of‑service and rate study.

Major budget drivers called out in the presentation included: personnel costs (the single largest expense across funds), the Wake Forest Center for Active Aging (estimated at a $500,000–$600,000 budget impact), approximately $1.1 million in new positions across funds, and rising employer retirement contribution rates (staff estimated roughly a $5 million budgetary impact tied to employer contributions). Staff said health insurance premiums show no increase for the seventh consecutive year under the town’s partnership with NCHIP.

Staff highlighted the town’s outstanding FY 2022 bond referendum issuances, noting two bond issuances remain pending in 2026 and 2028 and that debt service is projected at about $11.4 million. The presentation also noted Fire Station 6 will affect the FY 2027 staffing budget and will add debt service in FY 2028.

Next steps: staff told the board the formal adoption of the budget ordinance, authorized positions, fee schedule and pay‑in‑class plan is scheduled for the June 17 meeting; no adoption vote was taken at the presentation. Staff encouraged commissioners to contact budget staff with questions before the June 17 meeting.

The presentation and related budget documents are part of the budget book the board received in advance and staff said they are working to make the book a clearer communications tool for residents and commissioners.