LENOIR, N.C. — Lenoir City Manager Scott Hildebran has proposed a $41,873,375 budget for the 2026-2027 fiscal year that would keep the city property tax rate unchanged while slightly increasing water and sewer rates.

The proposal keeps the Lenoir property tax rate at 46 cents per $100 of value. The Rescue Readiness Tax would remain at 0.85 cents per $100, bringing the total city tax rate to 46.85 cents per $100. The Downtown Lenoir tax rate would also remain unchanged at 18 cents per $100.

The proposed budget includes $27,064,230 for the General Fund, $285,875 for the Special Downtown District, and $14,523,270 for the Water and Wastewater Fund.

Water and sewer rates would increase by 3.75%. City officials say the increase would cost a typical customer using 5,000 gallons of water about $2.12 more per month. Bulk and resale water and sewer rates would increase by 5%.

The budget also includes a 2.5% cost-of-living adjustment for all city employees, plus $2,000 added to base pay for all full-time employees.

Other proposed spending includes $430,000 for the city’s pavement plan, $150,000 for strategic paving, more than $103,000 for building demolitions and foreclosures, and $34,000 for contracted code enforcement. The plan also includes borrowing for a new 107-foot ladder quint fire truck through a 7-year, 0% interest loan.

Capital investments include equipment upgrades for police and fire, a sweeper truck, a backhoe, playground equipment, improvements at the Lenoir Aquatic and Fitness Center, and repairs to water and wastewater systems.

City Council will hold a public hearing on the proposed budget at 6 p.m. Tuesday, June 2, in the City/County Chambers in downtown Lenoir. Council meetings are open to the public.