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Kannapolis Council adopts FY27 budget, restores full transit service and schedules $40M parks bond hearing
Summary
Council approved the FY27 fee schedule, adopted a $90 million FY27 budget that increases transit funding to $1.2 million, approved a 12-month interlocal agreement with Concord to restore CK Rider service, and introduced a $40 million parks and recreation bond with a public hearing set for July 13.
Kannapolis City Council on June 22 unanimously approved the city's FY27 budget measures, reinstated full transit service through a renewed interlocal agreement with Concord, and introduced a $40 million general-obligation bond for parks and recreation projects, setting a public hearing for July 13.
City Manager Melton presented the three-step budget adoption: the fee schedule, the FY27 budget ordinance and the FY27 position classification schedule. Council approved the fee schedule and adopted the FY27 budget, which was adjusted from an originally proposed general fund of about $89.8 million to $90 million after stronger-than-expected sales tax receipts were recognized. Melton noted there were no changes to the property tax rate or the environmental fee as part of the adoption.
The transit fund was increased from an initial proposed $733,000 to $1.2 million to restore full CK Rider routes and weekend services; the increase was funded by higher sales tax receipts and by using transit fund balance. Council approved a 12-month amended interlocal agreement with the City of Concord to maintain the transit system through June 30, 2027, at the $1.2 million level, allowing the city a year to renegotiate and improve the system.
Council also adopted the FY27 position classification schedule, as required by city personnel policy to set salary ranges for all classifications. Several council members praised staff negotiations that secured the transit agreement and thanked volunteers and staff who produced recent community events.
On capital planning, staff introduced a $40 million general-obligation bond for parks and recreation projects including East Side Park (estimated at roughly $6.5 million, not including a $500,000 grant), greenway segments, the Gem Theatre, and other priorities. Council discussed reducing the total to $38 million but ultimately left the amount at $40 million; the council adopted resolutions to introduce the bond order and to set a public hearing for July 13, 2026.
Votes at a glance: - Adopt FY27 fee schedule — approved (motion by Ms. Dixon; second Mr. Payne; voice vote) - Adopt FY27 budget ordinance — approved (motion by Ms. Dixon; second Mr. Dayvault; unanimous) - Adopt FY27 position classification schedule — approved (motion by Mr. Dayvault; second Mr. Payne; unanimous) - Approve amended interlocal agreement with Concord for transit (12 months, $1.2M) — approved (motion by Mr. Dabbs; second Ms. Dixon; unanimous) - Approve voluntary annexation: South Chapel Street (0.288 ac) — approved (motion by Mr. Payne; second Ms. Berry) - Approve voluntary annexation: 6758 Davidson Highway (20.05 ac) — approved (motion by Mr. Payne; second Mr. DeVol) - Adopt TA-2026-02 (remove ETJ references from KDO) — approved (consistency statement and ordinance adopted; motions and seconds recorded) - Introduce GO bond order ($40M) and call public hearing for July 13 — approved (motion by Mr. Damon; second Ms. Ashwell)
Next steps: staff will finalize interlocal contract details and return to council with follow-up on transit implementation; staff will also prepare bond materials for the scheduled July 13 public hearing.
