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Newton City Council adopts FY2025–26 budget and 10-year capital plan amid split vote
Summary
Newton City Council adopted the Fiscal Year 2025–26 budget and a 10‑year Capital Improvement Plan, re‑establishing ARPA‑funded capital projects; the budget passed with four votes in favor and two against. Council and residents debated fund balance levels and the $30 vehicle tax.
The Newton City Council on June 3 approved the Fiscal Year 2025–26 Annual Budget Ordinance and a 10‑year Capital Improvement Plan after discussion about fund balances and spending priorities.
The budget ordinance passed on a roll call that left Council Members Jon McClure and Beverly Danner opposed. Council Member Jody Dixon moved the measure and Ed Sain seconded it. Mayor Pro Tem John Stiver and Council Members Dixon, Roy Johnson and Sain voted in favor; McClure and Danner voted against.
City Manager Sean Hovis and Finance Director Kim Robinson outlined the city’s fiscal position during a public hearing. Resident Patrick Sterchi told council he had reviewed the city’s financial statements and asked why the city maintains large reserves while keeping a $30 vehicle tax. “When I see that we have $36 million cash in bank … it seems like a lot of cash in reserve,” Sterchi said.
Robinson responded that the city’s accounting groups assets by fund and that the General Fund does not hold $36 million in cash. She said unrestricted fund balance available to meet obligations is about $4.5 to $5 million. Council Member Dixon reiterated the $5 million figure and noted the need to meet Local Government Commission requirements.
As part of the same actions, council approved staff recommendations to re‑establish capital projects originally allocated with American Rescue Plan Act (ARPA) funds and to replace ARPA dollars in those project funds with the appropriate fund balances; staff said this approach followed prior guidance from the UNC School of Government and allows compliance with reporting and expenditure deadlines.
Staff listed the principal ARPA‑related projects and amounts: Downtown Revitalization, $2,000,000; Facilities Improvements & Fire Training Center, $808,450; Central Recreation Renovation, $380,000; Parking Lot Development & Land W C St, $237,000; City Comprehensive Plan & IT Fiber Upgrades, $151,000; and other equipment, $5,900. Council unanimously adopted the ordinance to re‑establish the projects.
Mayor Jerry Hodge reiterated that the $30 vehicle tax is designated to fund street paving and pothole repairs, a purpose cited when the tax was established.
The council’s adoption of the budget and CIP closes the formal budget process for the year; staff will proceed with implementing approved first‑year projects and return with any required ordinance amendments or contract awards for specific capital work.
