The Wilmington City Council has passed its initial reading for the 2025 budget — it’ll require some modifications before the second reading to include changes council members have asked for.
As with earlier proposals, the budget includes significant investments in staff, including $8.6 million for recruiting and retaining skilled employees. It also includes $30 million in capital investments, as well as increased debt service payments (in large part for the purchase of the Skyline Center, formerly the ThermoFisher building). The city expects the sale of surplus property to eventually help mitigate that debt. The budget will also fund cancer screenings for firefighters, something the city's fire department has lobbied for.
The biggest changes, driven by public outcry, were renewed funding for the Downtown Business Alliance — that was just $10,000 — and reinstating the mounted police unit, which will cost $351,000 annually.
The unit will be paid for money that had been set aside for local elections but wasn’t used because there wasn’t a municipal election last year.
The rest of the money will come from ABC revenue, as noted by Councilmember David Joyner.
“So we can all do our part to maintain the tax rate by buying a bottle of liquor distilled in the City of Wilmington, is that correct?" he asked the staff.
“Hear hear," Mayor Bill Saffo said.
There were also changes related to the city's HUD entitlement this fiscal year: the HUD entitlement funding received by the city was reduced by $175,225 from the amount received in FY25. As a result, a portion of the city's Affordable Housing Fund, totaling $2.3 million of the general fund, has been reallocated for administration. The Gap Financing fund was reduced by $30,000 and shifted to the CDBG Admin fund.
The city rounded up a 10th of a cent but otherwise remained net neutral for the tax rate, equating to about an extra $350,000 in revenue for the city.
Councilmember Luke Waddell voted against that part of the budget because of that 10th of a cent, but the rest of council voted in favor of the budget.
If it passes a second reading later in June, the city’s tax rate will be 28.25 cents per $100 of value. The component related to raising various fees passed unanimously.
