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Town manager presents $46.7 million FY27 budget with no property tax increase
Summary
Town Manager Malia James on May 11 presented a balanced FY27 manager—s recommended budget of about $46.7 million that does not raise the property tax rate, proposes a 3% COLA and up-to-3% merit pool, and includes a five-year capital investment plan and four new FTEs to support operations.
Malia James, town manager, presented the FY27 manager—s recommended budget on May 11 and told the Matthews Board of Commissioners it is balanced and would not raise property taxes.
The recommended budget totals about $46,670,670 and represents a 13% increase over the FY26 adopted budget, James said. She attributed most of the rise to the new transportation tax revenues anticipated under the PAVE Act, which the town has budgeted conservatively at eight months of receipts rather than a full 12 months.
"So there is no property tax increase as part of the FY27 budget," James said. She also told commissioners the town remains well within its legal debt limit and is holding a low debt capacity that supports high credit ratings.
Why it matters: the manager—s proposal sets the starting point for the board—s budget deliberations and includes both short-term operational choices and longer-term capital plans. The recommendation keeps the town—s operating posture steady while adding planning capacity for upcoming transportation projects tied to the PAVE Act.
Key elements
- Compensation: James proposed a 3% cost-of-living adjustment effective Jan. 1 and a merit pool up to 3% effective Sept. 1 as the town aligns with regional trends. She said the baseline FY27 cost for the COLA-plus-merit package is about $682,954 and that additional FY28 funding will be needed to fully fund the salaries when the merit pool becomes effective.
- Staffing: the recommendation adds four new full-time equivalents — a staff attorney (in-house), an IT technician, a safety/risk coordinator, and a senior transportation planner — intended to provide day-to-day legal support, strengthen IT and risk management and help execute a busier CIP and PAVE-related workplan.
- Funds and capital: the manager proposed a five-year capital investment plan and set the FY27 project slate at about $16.9 million, including roughly $10.7 million in bond proceeds from the town—s 2025 general obligation bond. The recommended general fund is $38,735,957, a 2.9% increase over FY26.
- Transportation revenues: James said the town expects to receive PAVE Act transit revenues beginning in 2027 and projected Matthews—s local receive about $5.4 million annually thereafter; staff used a conservative eight-month estimate for FY27 budgeting.
Board questions and next steps
Commissioners asked staff to verify whether regional initiatives such as the county—s "Better Bus" program could change the distribution of funds under the PAVE Act and whether Matthews—s town allocation is guaranteed. James said she would confirm the allocation rules with county staff.
On process, James said the board will receive a full budget book with line-item detail and that staff will return with the public hearing and formal adoption steps later in the budget calendar.
The board recessed after the presentation and continued other agenda business; James told commissioners they would receive the detailed budget notebook before formal adoption consideration.
