City of Kinston Proposes $133M Budget for FY 2025-2026
The City of Kinston has unveiled its proposed budget for the 2025-2026 fiscal year, totaling just over $133 million, up from $120 million last year. The budget, presented by City Manager Rhonda F. Barwick is balanced with a transfer from the electric fund to the General Fund and without the use of fund balance. Barwick presented her budget to the mayor and council as a budget that prioritizes infrastructure, public safety, and employee compensation.
The proposed general operating property tax rate for FY 2025-2026 is $0.73 cents per $100 of assessed value, down from $0.77 cents the previous year. This comes on the heels of Lenoir County completing a county wide property revaluation. The proposed rate remains higher than the revenue-neutral rate of $0.5994 cents.
The total recommended budget spans multiple funds, including the General Fund, Enterprise Funds, and Internal Service Funds. The largest expenditures include:
General Operating Fund: $33.79 million
Electric Operations: $50.06 million
Water Operations: $12.55 million
Sewer Operations: $7.9 million
Stormwater Fund: $4.23 million
Barwick’s budget includes a 5% cost of living adjustment for all full-time city employees, beginning July 1, 2025. Additionally, the city will spend $40,000 to conduct a long-overdue Pay and Classification Study—its first in nearly 20 years. Rising costs for group insurance and retirement benefits are also factored in, with employer retirement contributions increasing for both law enforcement and non-law enforcement employees.
The budget proposes funding for six new positions, including converting the part-time Public Information Officer role to full-time and filling previously unfunded roles such as a Planner I, Police Captain, Police Officer, and two Firefighter II positions. The added firefighter roles are aimed at improving OSHA staffing compliance.
To fund capital improvements in utility services, the budget includes a 15% increase in sewer rates and a $1 per month increase in the stormwater ERU fee. Planned capital outlays in these areas include $300,000 to refurbish a belt press at the wastewater treatment plant and $657,006 for a new sewer jet truck. Stormwater infrastructure projects include improvements along Heritage Street, Blount Street, and College Street.
In the electric sector, the city plans to use its Rate Stabilization Fund to help offset expected wholesale cost increases. The Electric Fund will also transfer $2.3 million to the General Fund, consistent with Local Government Commission regulations. A comprehensive Electric Cost of Services Study is underway and expected to be completed after the start of the fiscal year.
Spending Highlights
The proposed budget includes targeted investments aligned with the City Council’s strategic planning goals:
Public Safety:
$644,000 to replace 60 body-worn cameras and 20 in-car cameras
$581,086 to replace 10 aging police vehicles
$280,000 to maintain the city’s contract with Lenoir County for animal control services
Infrastructure:
$655,400 for road resurfacing, aiming for a 25-year cycle
$50,000 for final rehabilitation of Hardee Road
$138,750 to upgrade five traffic signal cabinets and wiring
$151,649 to replace the city’s aging phone system
Community Development and Recreation:
$35,000 to resurface the Holloway Pool house floor and $13,500 to refurbish the Holloway Center gym floor
$20,000 for lighting improvements at Emma Webb Park
$70,000 to renovate putting greens at Bill Fay Golf Course
$26,000 to replace scoreboards at Bill Fay and Barnet Parks
$93,000 to replace portions of the roof at Mock Gym
$54,120 to upgrade fencing at Southview Cemetery
$65,000 for building demolitions
$60,000 to support downtown revitalization and land use planning
Reappraisal and Tax Rate Adjustments
While city officials are highlighting the nominal rate reduction, the higher-than-neutral rate means many residents will likely see increased property tax bills depending on the change in their assessed property values.
“The FY 2025–2026 operating budget follows the general reappraisal of real property,” Barwick wrote in the budget message. “The revenue-neutral tax rate… is $0.5994 cents. The proposed property tax rate… is $0.73 cents.”
The city’s tax base increased to $2.04 billion following the reappraisal, and the 13-cent difference between the neutral rate and the proposed rate is expected to generate additional revenue for Kinston.
Public Input and Next Steps
The proposed budget will be available for public inspection at the City Clerk’s Office and on the city’s website. A public hearing is scheduled for June 3, 2025, during the Kinston City Council meeting.
Mayor Don Hardy and City Council members—Robert A. Swinson IV, Felicia Solomon, Antonio Hardy, Chris Suggs, and Barbara Seaforth—will review the proposal in the coming weeks.
City officials say the budget reflects a continued commitment to maintaining core services, enhancing public safety, and addressing critical infrastructure needs while also investing in the workforce and community amenities.
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