Wilmington City Council approves first reading of city budget and more

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WILMINGTON, N.C. (WECT) - The Wilmington City Council has approved the first reading of the FY26 budget as well as funding for roadway improvements and the downtown trail at its meeting on June 3.

FY 2026 Budget

Council voted to approve the first reading of the $306.6 million FY26 city budget that will take effect on July 1.

According to a press release from the city, the focus areas include support for workforce development, public safety, infrastructure, and housing affordability, while maintaining critical services and managing costs.

The budget includes the following:

• “$8.6 million in a competitive compensation strategy designed to attract and retain skilled employees
• “More than $30 million in capital investments to improve and maintain Wilmington’s essential infrastructure
• “$2.3 million to fund a range of affordable housing initiatives. These include gap financing to support new developments, homeownership assistance, and safety and health-based home repairs.
• “More than $400,000 allocated to continue police equipment and service contracts
• “New funding to cover cancer screenings for all uniformed firefighters
• “Following a countywide revaluation conducted by New Hanover County, the median residential home value increased from $238,300 to $364,408. To maintain revenue neutrality, the city set the FY26 tax rate at $0.2825 per $100 assessed valuation. This includes a slight rounding adjustment from the calculated neutral rate of $0.2815. The property tax reevaluation adjusted the Municipal Services District (MSD) tax rate from $0.0647 cents to $0.05 per $100 assessed value.”

During the meeting, the interim City Manager, Thom Moton, stated that the budget was adjusted to add back funding for the Wilmington Police Mounted Unit , Downtown Business Alliance, and Voyager.

You can read the full budget on the city’s website .

The final reading will occur at the council’s next meeting on June 17.

Funding for Downtown Trail Phase 1 Design Project

The council also approved to appropriate $431,200 from the North Carolina Department of Transportation (NCDOT) towards the Downtown Trail Phase 1 Design Project.

Phase 1 of the project includes an approximately 1.7-mile segment beginning at 3rd Street to McRae Street. It then moves east to Archie Blue Park before continuing north parallel to the creek and ending at the Love Grove Bridge multi-use path facility.

The project was funded in 2022 by the Wilmington Urban Area Metropolitan Planning Organization (WMPO) of $680,000. According to city documents, the two-year delay and new elements to the design have resulted in more funds to complete the design project.

The council previously approved to apply to the WMPO for $431,200 on March 18 to be appropriated to the project.

Roundabout and Roadway Improvements at Independence Boulevard and River Road

Council approved an ordinance to appropriate $314,800 from Riverlights for improvements to the roadway and installation of a roundabout at the Independence Boulevard and River Road intersection.

The city initially entered into an agreement with Riverlights and Watermark on June 27 of 2024, to improve the roadway.

“With the design complete and bids received for construction of the project, the City, Riverlights, and Watermark now wish to enter into an amendment to the agreement to increase the maximum cost of the improvements and adjust the not-to-exceed amounts for each party to reflect the updated project costs,” city documents state.

Construction is expected to begin in June and is expected to be completed by December.