WILMINGTON — The City of Wilmington passed its $350-million budget for fiscal year 2027 on Tuesday evening.
It includes a tax rate increase of 4.9 cents per $100 of assessed valuation. Council voted 4-3, with Mayor Pro-Tem Kevin Spears and council members Salette Andrews and Chakema Clinton-Quintana against.
The increase will equate to roughly $18 more a month for a homeowner with a valued property of $445,000.
The budget takes effect July 1, 2026, and adopts a living wage salary for city staff, as well as helps with recruitment and retention.
Costing $16.7 million in total, the living wage is a pay philosophy that would tie the city’s starting rate at 60% of the area median income, which is $45,531. The city’s first responders are to reap much of the benefit of increasing the baseline, though they will be capped at a $15,000 increase; all other city staffers will be capped at $12,000.
There will be a 70% increase in police and fire staffing, equipment and other public safety needs.
“We have some dangerously high vacancy rates in police and fire,” council member JC Lyle said at the meeting, “and this budget addresses those.”
During public comment Jordan Pettid, president of the Wilmington Professional Firefighters Association, said it’s hard to make ends meet and provide for a family as a firefighter, many of whom have a second job.
“Tonight we can fix that with a livable wage,” he stated in support, also noting it helps keep good talent within the city.
Council also approved to use $2.5 million from the city’s fund balance to help with $2.13 million to go toward law enforcement vehicles and $378,886 mission-ready gear.
The city’s fund balance policy requires it maintains 20% and 25% of the general fund amount, even though the state suggests a minimum of 8%. The $2.5 million pulled would not put the city in jeopardy of violating its policy, though it would reduce one-time money the city could spend on other unexpected costs — hurricane damage, for example.
Andrews, while thankful for everyone’s work and supportive of a living wage, was not a proponent of using the fund balance to reduce the tax increase.
“I believe recurring expenses should be covered with recurring revenue,” Andrews said. “using reserves to support ongoing operating costs simply postpones the financial decision rather than resolving it.”
She also believed the fund balance should be used to cover emergencies.
Also during the public hearing, local business owner and New Hanover GOP Chair John Hinnant, was there to speak as a resident and entrepreneur. He asked to phase in the tax rate increases as to not further impact affordability for families or elders on fixed incomes, struggling by increased costs across the board.
“I think it’s irresponsible to increase taxes as much as you’re proposing,” Hinnant said. “I’m a real-estate appraiser and since the reval in 2025 I have done 100 houses in New Hanover County … and the majority have seen a property increase of 25%, but I’ve seen houses with 50%-plus.”
He said his own home had a 63% increase in value, which makes taxes more costly.
Mayor Pro Tem Kevin Spears, while not opposed to a living wage among city staff, said he was concerned about increased costs on constituents, considering “today’s economic environment.” He did not agree with the approach and wanted to phase in the livable wage increase as well.
“We’re playing King Solomon here and it’s difficult to appease everybody,” Spears said and ended up voting against the budget.
His colleague, Cassidy Santaguida, conceded to her taxes escalating to almost $18 a month with the current budget. She believed it was a good allocation of funds for needed residential resources.
“I will tell you, you cannot get a better return on investment of $18 a month,” Santaguida said, “to get better roads, to improve safety, to fill pot holes, to fill storm drains and to pick up trash.”
Catch up on Port City Daily’s previous reporting on the budget and city’s numerous workshops here:
- Wilmington council votes on 4.9-cent tax rate with living wage preserved, fund balance used
- Wilmington city manager settles on 5.75-cent increase in budget recommendation
- ‘No scenario where there isn’t a tax increase’: Wilmington council presented with 6.26-cent rate
- Wilmington council discuss multi-cent tax increase to accomplish wage, capital project goals
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