June 11. By Dave Vieser. The Cornelius Town Board has unanimously approved Town Manager Andrew Grant’s proposed budget for fiscal year 2026, totaling $39.4 million. The spending plan carries the same property tax rate as this year—17.31 cents per $100 of assessed valuation—while funding many vital services in Cornelius, including the police and fire departments as well as portions of several key transportation projects.

Grant

The proposed budget carries a property tax rate of 17.31 cents per $100 assessed value, the same rate taxpayers paid this year.

Thus far, there’s been little controversy about the budget either from residents or the commissioners themselves. At two budget hearings, only one resident appeared to testify against the plan, and the commissioners seem pleased with the final product.

How is the budget funded?

The town budget is supported in part by property taxes, which comprise about one third of a typical taxpayers bill, with the remainder being Mecklenburg County taxes. While the town tax rate is remaining stable, the county has proposed a 1.6 percent tax rate increase. Services such as CMS schools and the county sheriff are funded by the county. Cornelius taxpayers are billed annually by the county tax assessor and the tax bill is a combination of the town and county tax rate.

This means the total annual property tax on a $500,000 home in Cornelius will be $3,328.50 if the proposed 2026 budgets are approved by both the town board commissioners and Mecklenburg County Board of Supervisors..

The Town budget..in greater detail

Pursuant to state law, the proposed Cornelius spending plan will go into effect on July 1 and cover the period through June 30, 2026. Some issues funded by the proposal include:

• $250,000 for a Facilities Needs Assessment involving the Town Police, Fire Department and Town Hall. The structures which house these departments, are overcrowded. A coordinated review, in conjunction with the ongoing downtown master plan, will help determine how to address this problem, including an assessment for the best location of a third fire station.

• $411,000 to continue the fire department transition from part time/volunteer to paid/full time.

• A 3.5 percent average market salary increase for employees,along with a 1.5 percent COLA increase.

Meanwhile, the budget holds the line on taxes by eliminating almost $98,000 in recurring operating expenditures in order to create capacity to fund new expenses, according to Town Manager Grant.

“The recurring operating expenditures include a reduction in licensing for software not in use, mapping services, utility costs, and postage costs, and gaining efficiencies in certain programs. None of these reductions will have an impact on services to the community,” Grant says.

In addition, at the Town’s February Budget Planning Session, Grant proposed operating goals and capital items for the new budget. After discussions with the town board, over $3 million of those proposed expenditures were deferred.

The initiatives deferred include:

• A new Transportation Planner

• A new Police Co-Responder/Mental Health Clinician,

• Fire vehicle traffic preemption technology

• A playground replacement at Westmoreland Athletic Complex

• Landscaping in conjunction with active NCDOT road projects,

• Fire Station 2 air pack compressor & filling station,

• Police security camera system enhancements

• A reduction in funding for new sidewalk construction

Despite the loss of funding for these items in this year’s budget, Grant describes they’re valid and says they will need to be funded in upcoming years.

About those future years

Here’s where things get sticky. In fact, a strong note of caution was sounded by Grant on the town’s long-term financial situation when the 2026 budget was unveiled May 5.

“The projected annual operating revenue will not keep pace with capital projects, personnel retention, general operations and the fire department transition plan. We will need a correction prior to the 2029 fiscal year budget with either substantial additional revenue, property tax increases, or a significant cut in expenditures,” he said.

And just what is a correction?

“Absent a major reduction in services, it would mean a significant increase in town property taxes,” Grant said when he unveiled the proposed budget.

Why not start raising taxes gradually this year to cushion the impact on taxpayers?

The mayor and all five commissioners are up for re-election this year. Political observers agree that its easier to raise taxes in an off year, when they are not on the ballot.