Burlington council adopts $95.9 million budget, approves 8¢ tax increase to cover bonds and public safety

The Burlington City Council on June 2 approved a $95.9 million general fund budget for fiscal year 2026–27, including an 8¢ property tax increase the city manager said is needed to cover bond debt service and rising public safety costs.

City Manager Bob Patterson, presenting the proposal, framed the increase as a response to debt service on recent voter-approved general obligation bonds and inflationary pressures. "We will be recommending a dollar a month increase in solid waste fees and the establishment of a separate solid waste enterprise fund," Patterson said during the presentation, and he outlined a proposed 5% water and sewer rate increase.

The budget document shows the city forecasting a roughly 3% natural growth in the tax base and proposes that 4¢ of the increase be dedicated to bond debt service and 4¢ toward public safety salary adjustments. Patterson said the city expects roughly $3.4 million in debt service this coming year tied to bonds approved by voters in 2024.

Council debate focused on the timing and causes of the increase. One council member, who moved to approve the budget, detailed why the rise was necessary and criticized prior bond estimates as "sloppy and rushed," saying some projects have already consumed funds originally planned for other work. "8¢ is a lot to have to do in 1 year," the council member said, but added the council must address debt service and ensure first responders are adequately staffed and equipped.

Supporters called the adopted plan a "no-frills" budget aimed at shoring up the general fund, restoring reserves and keeping essential services operational. Patterson also said the proposed budget includes a $100,000 allocation toward an affordable housing initiative and that a previously budgeted $250,000 will be moved into a restricted fund, making $350,000 effectively available beginning July 1 for future housing work.

Votes at a glance - FY 2026–27 general fund budget ordinance and Community Development Budget Ordinance: approved by voice vote (motion moved by a council member and carried). - Flood Damage Prevention Ordinance (revised, effective 06/10/2026): adopted on second reading. - Consent agenda items approved, including: one-year contract extension with Burlington Downtown Corporation (effective 07/01/2026), authorization to dispose of specified surplus property via public auction under NCGS, police department budget amendment to appropriate $74,000 for two crash investigator vehicles, priority corridors grant program expansion, traffic ordinance changes to several intersections and speed limits, and appointments to the Burlington Animal Appeals Board.

Why it matters The tax increase directly affects property owners: city staff presented illustrative impacts for typical properties and said the change is intended to cover rising debt-service obligations and to make public safety salaries more competitive to retain staff. Council members said the decision balances voter-approved capital projects with operational needs after years of constrained budgets.

What’s next Patterson said some fee changes, such as a proposed impervious‑surface stormwater fee structure, would return to council for a public hearing in mid‑June and take effect in January 2027 if adopted. The new fiscal year begins July 1; council may consider budget amendments as projects and fee decisions are finalized.

Attribution: Quotes and attributions are drawn from council meeting remarks on June 2, 2026. "We will be recommending a dollar a month increase in solid waste fees..." was stated by City Manager Bob Patterson during his budget presentation.