Graham city manager Megan Garner unveiled her $44 million proposed budget for the upcoming fiscal year that, if approved, would increase the city’s property tax rate by 3 cents to 0.3399 cents per $100 of valuation.
The manager’s proposed budget would represent an overall increase of $8.2 million (22.9 percent) in the city’s budget ($35.8 million) for the current fiscal year that ends June 30.
The proposed budget for the general fund totals $27.7 million; the proposed budget for the water/sewer fund totals $16.4 million for the next fiscal year that begins July 1.
Garner recalled this week that her proposed budget reflects a consensus that the council had reached in February to increase the tax rate by 3 cents in order to finance the construction of a $6 million fire substation in the southern part of the city and several other big-ticket projects.
Following an analysis of the city’s debt capacity by a consultant with Davenport Public Finance, the council had agreed by consensus to plan for $22 million in capital projects over the next five years. In addition to the fire substation, those projects include: a $1 million fire truck; $4.1 million over the next two fiscal years to design the next phase of the city’s regional park; $3.75 million for street resurfacing; and to increase annual funding for capital improvements from $1.4 million to $7.1 million.
The $22 million capital improvement plan required an increase of 2.79 cents in the city’s tax rate, according to the consultant from Davenport, but mayor pro tem Ricky Hall suggested at the time rounding up to a 3-cent tax increase.
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The manager noted this week that, for the first time in years, she’s proposing to transfer $3.1 million from a “non-departmental” account within the general fund to a capital reserve fund that will be used to offset the costs associated with the $22 million in big-ticket projects that she’d already penciled in, based on the council’s consensus.
Meanwhile, under Garner’s proposed budget, the city’s water/sewer rates would increase by 6 percent for the upcoming 2026-27 fiscal year, if approved by the city council. Graham’s water/sewer rates increased by 4 percent for the current 2025-26 fiscal year.
The manager is also recommending increasing garbage and recycling fees by $2 per month, from $14.50 to $16.50 for each rolling trash/recycling can, in 2026-27. Graham’s garbage and recycling fees increased by $1 per month, per can for the current fiscal year.
Personnel costs
The city’s need for additional employees is projected to increase during the upcoming fiscal year, as are the costs for personnel, based on the manager’s budget proposal.
Garner proposes to add at least four new positions within the general fund (a general maintenance worker; and three new entry-level firefighters) and three new positions in the utilities fund (a wastewater operator I; water treatment superintendent; and a water quality technician).
The manager also proposes creating several promotional opportunities within the general fund and utilities fund for existing employees “who are prepared to step into” those roles, which she said wouldn’t impact the total number of employees.
Garner’s proposed budget for 2026-27 includes a 3 percent cost-of-living adjustment (COLA) for all city employees, mirroring the 3 percent COLA that city employees received for the 2025-26 fiscal year.
Employee benefits – such as the mandatory employer retirement contributions – will increase by three-quarters of 1 percent for firefighters and local government employees, while that for law enforcement officers will increase by 1 percent (from 16.1 to 17.1 percent) during the 2026-27 fiscal year, Garner said.
The council is currently scheduled to hold a special budget work session at 1:00 p.m. next Wednesday at city hall. A motion to schedule the meeting at that time passed 4-1, with mayor Chelsea Dickey opposed, saying she had wanted to hold it at 6:00 p.m. on May 20, when more community members might be able to attend.
Council members Bobby Chin, Bonnie Whitaker, Jim Young, and Hall voted in favor of meeting in the afternoon.
The council customarily votes to adopt a budget for the next fiscal year at its June meeting.
