WAKE FOREST — Town Manager Kip Padgett presented the proposed Fiscal Year 2026-27 Annual Operating Budget to the Board of Commissioners on Tuesday evening, May 5, delivering a spending plan that holds the property tax rate steady, adds 25 new town positions — including 14 firefighters for a new station — and totals $145,213,515 across all funds. The full budget document was released publicly on Wednesday, May 6.
“I did not want a tax increase,” Padgett told the board. “General fund only a one point one percent increase, and we’re hiring fourteen firefighters. So we’re absorbing that.” He added that the town is also absorbing a rise in employee health insurance costs — all without raising taxes.
A formal public hearing on the proposed FY 2026-27 budget is set for Tuesday, May 19 at 6:00 p.m. at Town Hall. For details on how to attend and speak, see our earlier coverage. The board is expected to vote on final adoption at its June 16 meeting.
Tax Rate Holds at 42 Cents; Solid Waste Fee Rises One Dollar
The proposed General Fund budget is $97,545,500 — a 1.18% increase over the current amended budget. The property tax rate remains unchanged at $0.42 per $100 of assessed value, where it has held for multiple years.
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Residents will see one fee change on their bills: the solid waste fee increases $1 per month, from $24 to $25, to cover rising service costs. Electric rates and stormwater fees are proposed to hold steady. In a modest bit of relief, the Municipal Service District (MSD) tax rate drops one cent — from $0.14 to $0.13 — after the district paid off the debt it was carrying.
Fire Station 6: The Budget’s Centerpiece
The single largest driver of new spending in the proposed budget is Fire Station 6. The Local Government Commission approved the town’s financing package for the new station on the same day Padgett presented the budget — May 5 — clearing the final hurdle before construction can proceed. The station is projected to open in summer 2027.
To staff it, the budget proposes hiring 14 new fire recruits, who will begin training well ahead of the station’s opening. The personnel costs associated with Fire Station 6 add approximately $1.2 million to the budget. Those 14 positions account for the majority of the 25 new full-time equivalents proposed across all town departments.
The Fire Department’s ARPA-funded ladder truck — a $1.654 million piece of apparatus capable of reaching high-rise structures — is also expected to arrive within the next few months, further expanding the department’s capacity before the new station even opens.
Capital Investments: Transit, Wayfinding, and Housing
The proposed budget includes $8.9 million in capital outlay across all funds — $4.3 million from the General Fund, $2.4 million from the Electric Fund, and $2.3 million from the Stormwater Fund. The budget allocates $600,000 for design work on the S-Line corridor, $450,000 for wayfinding signage, and $617,000 for the town’s housing affordability half-cent fund.
On the debt side, the town plans a second issuance of its 2022 general obligation bonds in Fall 2026, totaling approximately $23.5 million. Wake Forest currently holds Aaa and AAA bond ratings — the highest available — from Moody’s and Standard & Poor’s respectively.
A Strong Current-Year Position — With a Caution About the Future
The proposed FY 2026-27 budget is built on a financially healthy foundation. Through March 31, the General Fund had collected 75.81% of its budgeted revenues — right on the town’s 75% benchmark — with property taxes running $1.3 million ahead of the same point last year. Wake Forest Power, the town’s electric utility, reported a net gain of roughly $3.35 million through March, compared to just $232,000 at the same point last fiscal year.
But Padgett offered a longer-range note of caution. The town’s five-year financial forecast projects potential deficits emerging in fiscal years 2029 and 2030, as growth that has fueled Wake Forest’s revenue for years begins to level off. He also flagged state legislative uncertainty: the N.C. Senate passed a measure that would freeze property revaluations, and a proposed constitutional amendment related to property taxes could affect municipal finances if it advances.
How to Have Your Say: May 19 Public Hearing
North Carolina law requires municipalities to hold a public hearing before adopting their annual budget, and the May 19 meeting is Wake Forest’s. The hearing is Item 4.B on the agenda and begins at 6:00 p.m. at Wake Forest Town Hall, 301 S. Brooks St.
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Speakers are given three minutes at the podium. Those in favor of the proposed budget speak first; those with concerns or opposition speak second. To submit written comments or questions in advance, call the Deputy Town Clerk’s office at 919-435-9432.
The meeting will be broadcast live on WFTV Channel 10 and streamed through the town’s Public Meetings Portal. The Board of Commissioners is expected to adopt the FY 2026-27 budget at its June 16 regular meeting, in time for the new fiscal year beginning July 1.
The Board of Commissioners meets on the third Tuesday of each month at 6 p.m. at Town Hall. Agendas are posted by noon the Friday before each meeting at wakeforestnc.gov.
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