Wilmington officials outline $51M–$63M CIP gap and options including a small tax-rate adjustment
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Summary
City staff told council the current CIP bucket has a funding shortfall that ranges roughly $51.4M to $63.03M depending on grant outcomes; staff recommended a middle financing option (assuming grant awards and reserve use) that would require about 0.61 of a cent increase to the tax rate, with alternatives including delaying negotiable projects or reprioritizing existing funds.
City staff presented a detailed review of the capital improvement program (CIP), telling council that critical "non-negotiable" projects (bridges, bulkheads, stabilizations) carry an approximate shortfall of $23,000,000 and that negotiable projects add roughly $30,300,000 to the gap. Together, staff said, the total range is about $51.4M to $63.03M depending on grant awards and how a Riverwalk surplus is applied.
Heather Padgett, assistant budget director, described several individual projects and funding status. On the Front Street bridge she said engineering analyses lowered a previous estimate: "the project cost is now at 3,300,000 and the delta is closer to $200,000," and staff noted possible (but not guaranteed) utility-relocation reimbursements. On the Water Street bulkhead replacement, staff said they are applying for grants with a likely 20% local match; staff displayed a match figure of about $4.2M and noted if the city did not secure grant funds the full project cost could be about $17.5M.
Staff said using existing debt capacity could fund the non-negotiable projects with no tax increase, but finishing negotiable projects on the existing schedule would require either new revenue or project delays. Presenting financing scenarios, staff recommended a middle option that assumes certain grant awards while reserving surplus dollars; staff said that option would require roughly 0.61 of a cent in tax-rate change and keep projects on a similar timeline. As an example of household impact, staff used a median assessed residential value of $445,600 and said the 0.61-of-a-cent example equated to about $27.18 per year for that median property.
Council asked detailed questions about older transportation bond promises, rights-of-way acquisitions, project design status, and contractor accountability. Staff recommended a dashboard of project status and financials for public transparency and said more refined estimates would be back to council in March and in subsequent budget documents.
The council recessed for a short break and staff said they would return in March with updated numbers and a dashboard for public tracking.