Lexington proposed budget to include rate increases
The City of Lexington proposed budget for next fiscal year includes a 13% increase in water rates and a 14% increase in wastewater rates for the third year in a row.
Lexington City Council will be holding a public hearing at 6 p.m. on June 9 at the Lexington City Centre on N. State Street to get input from citizens on the proposed 2025-2026 budget.
The 2025-2026 City of Lexington proposed annual budget totals $131,161,934 and the tax rate will remain at the same rate at $.65 per $100 assessed value. The special tax district rate for property owners in Uptown Lexington will remain at $.20 per $100 value.
While there is no recommended increase in electricity or other utility rates, the 2025-2026 proposed budget does recommend a 13% increase in water rates and 14% increase in wastewater rates.
These increases will add approximately $14.52 a month to City of Lexington Utilities bills, which is approximately $5.87 for water and $8.56 for wastewater for an average family household.
Lexington City Manager Johnnie Taylor said in a May 27 city council meeting said these increases were based on a 2022 utility rate study. The report concluded the city’s water and wastewater rates were much lower than the state average and would not provide enough revenue to pay for replacing and repairing aging infrastructure and facilities.
“We are making efforts to try to be prepared to deal with those issues,” said Taylor. “But I will say the increase in those rates are basically keeping us even. We are still creatively looking for ways to fund the massive costs that will be associated with upgrades...There is still more work to do.”
Taylor said there are several projects targeted in the city’s strategic plan, including $1.1 million budgeted for street resurfacing. The strategic plan for the upcoming year also includes potentially hiring a consultant to investigate building a mixed-used public safety facility which could house both a police and fire department.
City council has also expressed interest in conducting a housing study to assess the current housing inventory and the creation of multi-model paths which could be used for both walking and/or bicycles.
The complete proposed budget and budget summary can be found at www.lexingtonnc.gov
