City of Mebane Budget Session May 2026

The City of Mebane held a budget work session on May 14, 2026, focusing on the fiscal year 2026-2027 budget recommendations. Key procurement-related discussions included the review of estimated revenues, expenditures, and purchase order rollovers totaling over $1 million, impacting the fund balance. The council examined tax revenue trends, including property and sales tax estimates, and discussed the implications of a proposed two-cent tax increase, with options for alternative scenarios including a one-cent increase or no increase. Capital improvement projects were reviewed, notably a $6 million fire station and a $2 million public works shed, with attention to debt service and funding strategies. The council debated the flexibility of the capital reserve fund for debt payments and capital needs. Staffing levels and hiring projections were also discussed in relation to budget impacts. Additionally, funding and sustainability of the Downtown Mebane Development Corporation were reviewed, highlighting efforts to increase non-city contributions. The council considered salary adjustments for elected officials, proposing a cost-of-living increase policy to avoid sporadic raises. The session concluded with a consensus leaning toward a two-cent tax increase split between general fund and capital reserve, with final decisions deferred to the June meeting.