Kannapolis presents $126 million 2025-26 budget to council

Published 12:07 am Thursday, May 15, 2025

By Elisabeth Strillacci

KANNAPOLIS — The annual budget that City Manager Mike Legg presented to the Kannapolis City Council Monday night represents a $1.17 million increase over last year’s budget, but would create no increase in property taxes.

For the fiscal year 2025-26, the total recommended budget is $126,007,842 which includes all seven operating funds of the city. In 2024-25, the total budget was $124,838,649.

If the budget is approved in June, the tax rate will remain at 55.95 cents per $100 valuation. The council had only one meeting in May due to Memorial Day, so a public hearing on the budget is scheduled for 6 p.m., June 9. A vote by the council is then scheduled for the June 23 council meeting.

The overall expectation is that growth in revenues is going to slow down in the next year, primarily because of economic issues on the national level, something towns across both Rowan County and the state are grappling with. The proposed budget does therefore include several decreases to offset the anticipated drop in revenues, according to Legg.

“While these slower than expected revenues may not ultimately materialize, the recommended budget strategy is focused on short-term caution,” he said. In addition, the city has worked to build its savings or cash reserves to be able to pay for single expenses instead of taking on new debt.

Priorities continue to be retaining existing employees and making new hires, along with the continued implementation of the Imagine Kannapolis Strategic Plan. That plan has initiatives and the connected financial needs to implement them laid out for the next five years.

The Imagine Kannapolis Strategic Plan launched in 2022 and was designed to look at the future of the city over the next decade. Thirteen focus groups were formed, and dozens of residents participated in developing the strategic plan. Priorities were balanced with the needs the city would have during the next 10 years and what the city would need to put in place to provide a healthy quality of life and an economically strong foundation.

A re-examination of the initial priorities adopted in that plan and a discussion of potential changes is planned for the first half of the new fiscal year. But the proposed budget does fund several Imagine Kannapolis items, and a plan is outlined to fund additional projects over the next five years. These will be subject to city council ultimately adopting the final version of the strategic plan.

Projects from that plan that are included in the proposed budget include $1,350,000 for the construction of a Fire Training Tower at Fire Station 1; $1 million for a Western Cabarrus Emergency Communications Tower; $105,000 for the fire department logistics building; $124,500 for downtown one-time capital and operational investments; $324,000 for Little Texas sidewalk; $392,119 for the  Main Street parking lot; $100,000 for downtown event and promotional support via two part-time staff positions; and $100,000 for cultural arts/historic preservation programming.

“While this year’s budget is less aggressive in new initiatives and capital items than previous years, there are many projects underway to continue to move Kannapolis forward in a positive direction. Our revitalization is well established and many of our Imagine Kannapolis initiatives are on track to advance to their completion,” said Legg.

Other highlights of the budget include cost of living and merit increases for employees; enhancements to health insurance and retirement programs; and pilot program for subsidies for employee daycare. But there are no new full-time positions in any department and no new capital outlay items.

The water and sewer base rate will increase by $3.31 per month and are the first increases in six years. Increases are necessary to cover costs associated with the expansion of the Rocky River Regional Wastewater Treatment Plant and improvements to the Kannapolis Lake Dam Spillway. The repairs to the dam are mandated by the state. The dam was originally built in 1940.

There is no proposed increase in stormwater fees. There is a $5 per month increase in the environmental fee, the first increase in several years. This is due to an increase in recycling disposal costs and increases in collecting and disposing of garbage.