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Red Bank commission gives first reading to FY27 budget, proposes 16-cent property tax increase
Summary
The Red Bank Board of Commissioners gave first reading to the FY27 municipal budget ordinance, which includes a proposed 16-cent property tax increase that would set the city rate at $1.29, creates a five-year capital improvement program and makes modest personnel adjustments; the first reading passed on voice vote.
The Red Bank Board of Commissioners gave first reading to the city’s FY27 budget ordinance, which proposes a 16-cent property tax increase that the city manager said would set the city rate at $1.29 for fiscal year 2027. City Manager Martin Graham presented the budget, highlighted a newly proposed five-year capital improvement program (CIP) and described personnel changes and market adjustments included in the plan.
Why it matters: The budget lays out the city’s planned spending and capital investments for FY27 and includes measures that affect residents’ property-tax bills, municipal service staffing and the city’s borrowing plans. The commission scheduled the ordinance’s second reading for June 2; if adopted at second reading the budget takes effect July 1.
City Manager Martin Graham framed three core themes for the plan—investing in infrastructure via the CIP, investing in the workforce with a proposed cost-of-living adjustment, and sustaining municipal services across all departments. "This budget includes a 16 cent property tax increase in FY27," Graham said in his presentation. He also said the proposed rate would be below the rate of a neighboring city the commission cited.
Graham described several specifics: the budget includes a 2.25% cost-of-living adjustment proposal, a net reduction of one full-time position (to 84 FTEs), several reclassifications and market adjustments, and a separate memo describing the proposed use of debt for capital projects. He said the city will continue a 100% match of the state property-tax relief program, estimating a match cost of about $26,000 and roughly 138 residents served.
The manager also said the budget would end Red Bank’s participation in the Carter transit service at the end of calendar year 2026 due to rising per-trip costs and an unsustainable funding formula. The CIP, he said, provides a five-year planning horizon from FY27 to FY31 for roads, facilities and equipment.
Public comment at the meeting emphasized affordability concerns. A commenter identifying themself only as "N." said many local seniors and low-income residents would be harmed by the increase, arguing "the property tax will account for 10% of their fixed income or more." Commissioners did not debate or amend the ordinance at first reading.
What happened at the vote: The first reading of the budget ordinance passed on a recorded voice vote at the meeting’s close of the new-business portion. The transcript records the following voting responses: Mayor Stephanie Dalton (recorded as "yes"), Vice Mayor Holly Barry ("yes"), one roll-call entry recorded in the transcript as "Mr. May" ("no"), Commissioner Terry Holmes ("yes") and Commissioner Hayes Wilkinson ("yes"). The commission will return for the second reading on June 2 before adoption.
Next steps: The ordinance returns for a required second reading on June 2; the finance officer must file the adopted budget with the state comptroller within 15 days of adoption. The budget materials, spreadsheets and a Q&A are available on the city’s budget webpage, the manager said.
