Kannapolis presents new fiscal year budget

Published 12:10 am Wednesday, May 22, 2024

KANNAPOLIS — After holding two, separate work session meetings on May 9 and 13 that went over several upcoming projects and initiatives to consider implementing, the proposed fiscal year 2024-2025 budget was presented to the Kannapolis City Council at the May 20 meeting. The new fiscal year starts on July 1 and ends June 30, 2025. 

“This is a quite consequential budget on a number of fronts. It provides a launching point for our strategic plan, a number of initiatives in that plan. It’s the first of five consecutive budgets that are strongly linked to that plan and for the five-year financial plan that is part of that,” City Manager Mike Legg said.

The balanced budget for the 2024-2025 fiscal year is $124,838,649, which is a 19 percent increase compared to last year’s. This figure has steadily increased from the 2019 fiscal year budget of $69,679,864.

Some of the projects in the “beginning stages” that are at a one time cost include $1,500,000 for construction of a fire training tower at Fire Station 1, $500,000 for construction of a downtown dog park at Dale Earnhardt Boulevard and Vance Street, $1,200,000 for the first phase in improvements to school athletic fields, $855,361 for an additional 190 downtown parking spaces and parking lot upgrades, and $2,850,000 for city hall enhancements. 

Over the next five years, the Imagine Kannapolis Strategic Plan will involve building Eastside Park, general street paving and sidewalk repairs, and bolstering the midway area. 

The general fund is listed as $84,993,152, a nearly 20 percent increase from last year. There is also $65,196,094 in cash reserves with $25,444,445 available for appropriation. 

Kannapolis’ tax rate is expected to decrease from 63 cents to 57.92 cents because of the Cabarrus County property tax revaluation and “positive projections in expected revenues.”

To better retain and attract city employees, there was a suggested 3 percent increase to the cost of living adjustment and merit pay incentives. On top of that, employees will see further advancements to their health insurance and for anyone with children under the age of five, a daycare program. All told, 14 new positions are going to be incorporated into the budget as well. 

For the first time in five years, there will be increases in water and sewer to help grow the Rocky River Regional Wastewater Treatment Plant and to refine the Kannapolis Water Treatment Plant. The base sewer rate will go up $1.44 per month per customer, the volumetric water rate will go up $0.51 per 1,000 gallons, and the volumetric sewer rate will go up $0.75 per 1,000 gallons. However, there will be no fee increases for stormwater or the environmental fund. 

On June 10, a public hearing will take place at the regularly scheduled Kannapolis City Council meeting for residents to share their thoughts on the proposed budget. As of now, it is on track to be officially approved by June 24.

The complete budget is available on the city’s website for review.