Wilmington city council approves $349.8M FY27 budget with tax increase

WILMINGTON, NC (WWAY) — Wilmington City Council voted 4-3 Tuesday evening to adopt the city’s Fiscal Year 2027 budget, approving a $349.8 million spending plan that includes funding for public safety, employee compensation, infrastructure, and core city services. The budget takes effect July 1, 2026.

The adopted plan includes a property tax increase of 4.9 cents per $100 of assessed property value. For a home at the city’s median assessed value of $445,000, that increase amounts to roughly $18.17 per month for the average homeowner.

City officials say more than 70% of the new spending is directed toward police and fire operations, including staffing and equipment. The budget also implements the city’s living wage strategy, which adjusts compensation levels in an effort to address recruitment and retention challenges.

In addition, the budget accounts for inflation and rising operational costs while funding infrastructure and capital improvement projects across the city.

While Mayor Pro-Tem Kevin Spears acknowledged the budget supports public services for a growing population, he shared concerns about the tax increase.

“The issue that I have is the implementation of the livable wage and the potential effects of raising property taxes in the economic environment we’re in,” Spears said.

To help offset costs, council approved the use of about $2.5 million from the city’s fund balance to support police vehicles and equipment. Officials say the city maintains reserves that remain within established policy guidelines.

The vote came on a 4-3 margin. The FY27 budget now moves into effect at the start of the new fiscal year in July.