June 16 City Council Meeting (Special Budget Meeting)

City Council Approves Budget, Infrastructure Projects, and Community Grants at Special Meeting

On June 16, 2025, the City Council convened a special meeting focused entirely on budget matters and related approvals. The session, attended by all council members, resulted in a series of significant decisions impacting city finances, infrastructure, and community programs. This recap summarizes the key outcomes for residents.

The primary focus of the meeting was the approval of the fiscal year 2025-2026 budget. After a brief public hearing with no speakers, the Council unanimously approved a budget maintaining the current property tax rate (50 cents per $100 of value) and downtown tax district rate (12 cents per $100). Residents can expect unchanged electric rates, a 10% increase in water rates (based on volume usage), and a 5% increase in sewer rates. Compass services subscribers will see a $5 monthly increase for the television portion of their service, effective January 2026. Alongside this budget approval, the Council also unanimously approved a schedule of associated fees and charges for the upcoming fiscal year. Additionally, council members voted to incorporate a 3% Cost of Living Adjustment (COLA) into the pay ranges for all city employees.

Beyond budget approvals, a significant portion of the meeting was dedicated to discussions and decisions regarding Community Block Grant (CDBG) funding. The Council approved both the 2025-2029 Consolidated Plan for CDBG funding and the 2025-2026 Action Plan. These plans prioritize supporting small businesses through grants, bolstering non-profit organizations within the community, and investing in public facilities and infrastructure improvements like nuisance abatement, sidewalk repairs, and storm drain upgrades. For the upcoming year, $90,000 is allocated for small business grants, $30,000 for non-profit support, and $79,976 for public facilities. The total awarded is $2,112,470 with an anticipated program income of $30,000.

The Council also approved several crucial contract awards to facilitate key city projects. Country Boy Landscaping, Inc. was awarded a $629,643.17 contract (with a potential contingency of up to $20,056.83) for storm drain repairs. Trans-US Incorporated of Charlotte will replace the HVAC control system at Comma for $37,700. Wildlands Engineering Incorporated received a contract of $88,130 for inspection and closeout services related to the Bethel Park Stream Restoration Project. Finally, Davy Tree Experts Company was approved for annual tree trimming services at an hourly rate of $134.30, with a spending limit of $225,000.

Several other important actions were taken during the meeting. The Council approved an amendment to a state cash flow loan agreement, extending its repayment term. They also extended the construction agreement with Baker Grading and Landscaping to December 31, 2025. A resolution was approved to apply for grant funding from the State Revolving Fund, exploring a potential water system interconnection between Morganton, Valdese, and Drexel. Finally, the Council established a special revenue fund for hurricane relief funds and a capital project fund to manage expenses.

During the meeting, Parks & Recreation Director Brian Fish provided updates on several ongoing projects, including progress at Bethel Park (playground and pickleball courts), the phased opening of Catawba Meadows park (starting in mid-July), and the completion of both a disc golf course and mountain bike trails. The Council also celebrated the swearing-in of Chief Lander and viewed a new fire truck, marking significant milestones for city services.

What’s Next? Residents can expect to see progress on the approved infrastructure projects, including storm drain repairs and improvements at Bethel Park. The CDBG Action Plan will guide the distribution of funds to support local businesses and non-profits. Applications for the State Revolving Fund grant will be submitted, potentially paving the way for a vital water system interconnection. The approved budget ensures the continuation of essential city services and supports ongoing community initiatives.