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Reidsville council adopts $42.6M FY2026–27 budget with no tax or utility rate increases
Summary
Reidsville City Council adopted the FY2026–27 budget on June 9, 2026, approving a roughly 3.17% spending increase driven by personnel and departmental costs while keeping the tax rate and water/sewer rates unchanged. The package includes a 3% COLA and plans for a one-time merit bonus approach.
Reidsville — The Reidsville City Council voted June 9 to adopt the city’s proposed operating budget for fiscal year 2026–27, approving a spending plan the city manager described as a 3.17% increase over the current year while maintaining the existing tax rate and water and sewer rates.
City Manager Summer Moore told the council the proposed citywide budget totals approximately $42,570,50 and stems largely from rising personnel and departmental costs. "There is no proposed tax increase," Moore said, adding the plan includes a 3% cost-of-living adjustment and a one-time merit/bonus mechanism to reward employees while implementing a career ladder and pay-plan adjustments.
The budget presentation summarized revenue assumptions — including an anticipated uptick in sales tax based on prior years and North Carolina League of Municipalities projections — and outlined how the city intends to balance operations without new rate increases. Moore said the administration used prior-year performance, current receipts and the League’s budget watch to set conservative sales‑tax projections.
Why it matters: the budget funds basic city services and capital priorities while attempting to limit the immediate tax burden on residents. Council members who asked about personnel benefits were told the 3% COLA would be separate from any onetime bonus and that the city’s finance and HR teams worked to optimize pay-plan impacts on employees’ take-home pay.
Council action and next steps: after a public hearing with no speakers, councilmembers moved, seconded and approved the adoption of the budget ordinance and the accompanying resolution of understanding by voice vote (no roll-call tally was included in the transcript). City staff will implement the budget beginning July 1 and return to council as needed with any required amendments or clarifications.
