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Morganton council adopts nearly $94 million budget, holds tax rate steady and approves employee pay adjustments
Summary
The Morganton City Council adopted a FY2026–27 budget just under $94 million, kept the general property tax at $0.50 and the downtown service district at $0.12 per $100 valuation, approved modest utility and fee increases, and authorized a 2% COLA and 2% merit pool for staff.
The Morganton City Council on Monday adopted the city’s fiscal year 2026–27 budget, a package totaling just under $94 million that keeps the general property tax rate at $0.50 per $100 of assessed value and the downtown service district levy at $0.12.
Sally, who presented the budget, said the plan includes about $20 million in citywide capital spending and recommended a $2 monthly trash fee increase (from $12 to $14). She also outlined utility changes described as an average 2.6% increase in electric rates and a 2.5% increase to water and sewer volume charges, and said the volume charge — not fixed fees — would carry the water/sewer adjustment. “Total budget is just under 94 million, just under 20 million in capital citywide,” Sally said.
The adopted budget contains compensation changes intended to retain staff: a 2% cost‑of‑living increase effective July and a 2% merit pool for eligible employees in March, plus a recommended 2% adjustment to salary ranges to keep pay scales competitive. The proposal also included several position reclassifications; the budget would convert the finance director role into a combined assistant city manager/CFO position and reclassify the current assistant city manager to deputy city manager.
Council closed the public hearing without public comment and moved three related ordinances: adoption of the budget ordinance, adoption of the schedule of fees and charges that support the budget, and approval of updated pay ranges effective July 1. Each measure was approved by voice vote as recorded in the meeting transcript; individual roll‑call tallies were not recorded in the proceedings. After the votes, council members thanked the finance committee and staff for their work on the budget.
Why it matters: the budget sets priorities for capital projects and service levels across the city and enacts the vendor fees and utility charge changes that will affect households and businesses going into the new fiscal year. Pay adjustments are intended to reduce turnover and align pay ranges with market rates.
The new pay ranges and fee schedule take effect July 1, 2026; utility rate changes are built into next year’s billing schedule.
