Wilmington council advances FY27 budget with 4.9‑cent substitute; living‑wage, police vehicles and fund‑balance tradeoffs dominate debate

Wilmington — City Manager Becky Hawk and council members spent the bulk of the meeting on the proposed fiscal year 2027 budget, debating tax‑rate options, the cost of implementing a living‑wage policy and how to pay for recurring public‑safety and operations costs.

Hawk told council staff had narrowed the manager’s initial proposal and would recommend a 5.5‑cent increase with limited fund‑balance use; council discussed an alternative substitute ordinance at 4.9 cents that would rely on identified one‑time fund balance uses (including purchasing police vehicles) to lower the rate for taxpayers.

Key elements discussed:
- Living wage: the proposed implementation includes caps to address internal compression — a $15,000 cap for sworn police and fire employees and a $12,000 cap for other employees, with the policy intended to improve recruitment and retention for essential services.
- Police vehicles: staff identified roughly $3.7 million in annual police‑vehicle replacement needs (about 50 vehicles per year); vehicle model changes (from Chargers to Tahoes) increase unit cost substantially and were a recurring expense in future budgets.
- Fund balance and one‑time uses: staff said the city can remain within its 20–25% fund‑balance policy while using one‑time reserves to buy vehicles and equipment, but warned that recurring costs paid from reserves raise sustainability concerns.

Council members expressed competing priorities: some favored a lower tax‑rate increase paid with one‑time reserves to ease taxpayer burden, while others urged caution because a $26 million plan to address unsheltered homelessness will likely require new funding and because recurring wage increases must be sustainably funded.

Council Member Joiner moved a substitute ordinance reflecting the 4.9‑cent property‑tax adjustment and council approved the substitute on first reading.

What happens next: The ordinance will return for a second reading and final adoption at a future council meeting. Council members directed staff to continue monitoring fund balance, identify one‑time versus recurring costs clearly and provide options for addressing homelessness funding and vehicle‑replacement cycles.