Graham proposes $44 million budget, 3-cent property tax increase

Graham homeowners would pay 30 cents more a year for every $100,000 in assessed value under the city’s proposed 3-cent property tax increase, a change city leaders are linking directly to a new fire substation in the southern part of town and other capital projects residents will see on the ground.

City manager Megan Garner presented the $44 million fiscal 2026-27 budget to the Graham City Council, a spending plan that would push the city’s property-tax rate from 30.99 cents to 33.99 cents per $100 of valuation. On a home valued at $200,000, that rate change would mean about $60 more a year in city property taxes. The proposal would increase city spending by $8.2 million, or 22.9%, over the current year’s $35.8 million budget.

The plan is split into a $27.7 million general fund and a $16.4 million water and sewer fund. It also calls for a 6% increase in water and sewer rates and a $2 monthly increase in garbage and recycling fees, from $14.50 to $16.50 per can. Garner is also recommending at least four new general-fund positions and three new positions in the utilities fund.

The tax increase follows months of capital planning. In February, city leaders said they were looking at about $11.1 million to $13.1 million in general-fund capital projects and $61.7 million in water and sewer projects over five years, with the general-fund tax impact estimated at 1 to 3 cents. Those discussions included a projected $6 million fire substation in the southern part of Graham, a $1 million fire truck, $4.1 million for the next phase of the city’s regional park, $3.75 million for street resurfacing and a larger annual commitment to capital improvements.

Garner’s proposal would move $3.1 million from a non-departmental general-fund account into a capital reserve fund to help cover those needs. City officials have also said the longer-range capital picture could reach nearly $75 million by 2031, including extensive water and sewer work that could bring future rate increases beyond the coming budget year.

The current proposal comes after last year’s 2-cent property-tax increase and a garbage fee hike from $13.50 to $14.50 per can. The city’s current water and sewer fund stands at $13.0936 million, a baseline that puts the jump to $16.4 million in sharper relief as Graham weighs road work, utility upgrades, fire protection and park expansion at once.

The council was scheduled to hold a budget work session May 20 at 1 p.m. and a public hearing June 9 at 6 p.m. at City Hall, where officials will have to show not just a larger budget, but measurable public-safety and infrastructure gains that match the added cost.