WS Chronicle

Staff Report

WS Chronicle

A proposed Winston-Salem budget now under City Council review would raise the property-tax rate, increase water and sewer charges, lift stormwater fees, and push up some city user fees — a package that would touch homeowners directly and could also ripple through renters’ monthly costs. The proposal is scheduled for another budget workshop today Thursday, May 14, followed by a public hearing on Monday, May 18, another workshop on May 21, and a planned council vote on June 1.

Winston-Salem residents are staring at the possibility of higher local bills this budget season, as a proposed $702.5 million city spending plan would increase property taxes, raise water and sewer rates, boost stormwater fees, and lift some other city charges as leaders argue they are trying to keep pace with labor costs, inflation, public-safety needs, and technology expenses.

City Manager W. Patrick Pate formally presented the proposed 2026-27 budget at the City Council’s May 4 meeting, and the city posted the proposal publicly on May 5. The next major checkpoint is a budget workshop scheduled today Thursday, May 14, from 2 p.m. to 4 p.m. in Council Chambers at City Hall, followed by the required public hearing on Monday, May 18, at 6 p.m., a final scheduled budget workshop on May 21, and a planned council vote on June 1.

At the center of the proposal is a property-tax increase from 56.7 cents to 59.3 cents per $100 of assessed value — a jump of 2.6 cents. City officials say that translates to about $5.50 a month for the median household. By Chronicle math, based on the city’s stated 2.6-cent increase, that would mean about $39 more a year for a home assessed at $150,000, about $65 more for a $250,000 home, and about $104 more for a $400,000 home.

The proposal would also raise water and sewer rates by 5 percent on July 1, which the city says would add $5.89 to the average residential customer’s bill every two months. Spread across a full year, that works out to roughly $35.34 more annually for the average household. Stormwater fees would rise 4 percent effective Jan. 1, 2027, and the city says some user fees — including charges tied to picnic shelter rentals, road closures, and electric-vehicle charging — would also go up.

What makes the proposal especially notable is that the city’s overall budget would actually be smaller than last year’s even as taxes and fees increase. According to the city’s budget office, the proposed total for 2026-27 is down $22.3 million, or 3.1 percent, from the current year. But the city says the entire property-tax increase would go toward general fund operations and is being driven primarily by compensation and benefits, inflation, IT systems, and the new Axon contract for the Police Department.

Pate has framed the plan as a maintenance-and-stability budget rather than an expansion budget. In city materials, he said the proposal is meant to preserve current service levels, continue investments already underway, and keep the city financially resilient. The budget also includes a 3 percent total merit increase for eligible employees, continues a recently approved $2 million package for Fire Department compensation adjustments, and sets aside money for vehicle, equipment, and IT replacement schedules.

For Winston-Salem families, though, the practical question is simpler: how much more will they have to pay, and what will they get for it? Homeowners would feel the tax increase directly. Renters are not billed city property taxes themselves, but higher operating costs on rental property can eventually show up in rent or fees, especially in neighborhoods where families are already juggling higher grocery, utility, and housing costs. City budget documents confirm the tax and fee increases, but they do not spell out how any of those added costs might be absorbed — or passed along — in the rental market.

That is part of why the next several days matter. Today’s workshop is expected to give council members another chance to question the administration’s assumptions and signal whether they are prepared to leave the manager’s plan largely intact or try to trim parts of it before the public hearing.

Residents who want to weigh in still have several paths. The city says the proposed budget can be reviewed in the City Clerk’s Office and on the city website. The formal public-comment opportunity is the May 18 council meeting, but residents can also leave comments on the city’s budget feedback line at 336-734-1400 or submit comments through the city’s online budget form, CityLink can be reached by calling 311 or 336-727-8000, or by email at citylink@cityofws.org.