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New Bern manager proposes $52.24 million FY2027 budget, board set public hearing and workshop
Summary
City Manager Hughes presented a $52.24 million proposed FY2027 budget that would raise the property tax rate from 39¢ to 42¢ (a 3¢ net increase) and includes a 2% cost-of-living adjustment, capital priorities and a May 12 adoption target; the board scheduled a public hearing April 28 and a workshop May 5.
City Manager Mr. Hughes presented the proposed FY2027 budget to the New Bern Board of Aldermen on April 14, laying out revenues, proposed spending and next steps for adoption.
Hughes told the board the city’s population increased 12.6% between 2020 and 2024 to about 35,266 residents and described growth in residential approvals and business openings that informed revenue projections. The proposed general fund budget totals $52,238,420 and would be balanced with $500,000 in fund balance and about $6 million in reductions from the initial requests.
Key figures in the proposal include a recommended 3¢ ad valorem property tax increase — 2.75¢ to repay general-obligation bonds and a quarter‑cent to support general operations — which Hughes said would move the rate from 39¢ to 42¢. Under the plan, a property assessed at $100,000 would see about $30 in additional annual tax, a $200,000 property about $60, and so on. The budget includes a 2% cost‑of‑living adjustment for employees and proposes no net new positions for the general fund while adding one sewer maintenance mechanic in enterprise funds and shifting two vacant positions.
On capital, the manager proposed $3.3 million in general-fund capital for FY27 (out of $7.9 million in departmental requests) and described multi‑year infrastructure forecasts that will be set up as multi‑year project funds. Enterprise fund capital requests and infrastructure needs were also described; the proposed total FY27 budget across all funds is about $181.75 million, a 9.3% increase over FY26.
Hughes reviewed revenue sources and constraints, noting roughly 36% of general fund revenue comes from ad valorem property taxes (about $18.88 million) and 25% from sales taxes ($12.9 million projected). Operating pressures cited included increases in retirement contributions, contracted services and insurance; the manager said the budget also preserves current service levels and funds replacement vehicles for public safety and other departments.
Hughes said the proposed budget complies with North Carolina statutes and outlined the public schedule: a required public hearing on April 28 at 6 p.m., a May 5 budget workshop and an adoption target of May 12, 2026. The budget document is available in the clerk’s office, the public library and on the city website.
The board did not act to adopt the budget at the meeting; members voted to schedule the April 28 public hearing and the May 5 workshop for further review.
