Mebane budget proposal includes property tax and utility hikes
A Mebane homeowner and utility customer could pay more on both bills if the city adopts a 2-cent tax hike and a 10.5% water-and-sewer increase.
A Mebane homeowner with a $250,000 assessed value would pay about $50 more a year if the city adopts its proposed tax rate, while a household with a $100 monthly water-and-sewer bill would see roughly $10.50 added each month under the planned utility increase.
City Manager Richard J. White, III formally presented the city’s FY26-27 Recommended Budget to the mayor and council on May 4, laying out a plan that would raise the municipal property-tax rate from 37 cents to 39 cents per $100 of assessed value and lift water and sewer rates by 10.5%. The city says the budget is balanced, and the 2-cent tax increase is projected to bring in $1,108,604 in additional revenue.
The proposal lands at a time when Mebane is trying to keep pace with growth and rising operating costs. White’s budget message cites inflation, tariffs, interest rates, supply-chain disruptions and rising fuel costs as pressures shaping the plan, along with about 400 new residential units expected during the fiscal year that begins July 1, 2026. The city’s budget materials show the increase in utility charges is tied to expanding system demands, while the tax hike would help support the broader municipal budget.
White’s message also points to specific spending needs that city leaders say cannot be ignored. The plan includes preparation for a fourth fire station on the west side of Mebane to improve response times, plus two new Public Works positions focused on stormwater maintenance after Tropical Storm Chantal. It also references major utility and infrastructure work already underway or planned, including a new 1 MGD water tower, a WRRF groundbreaking, parkland purchases and a regional water-system study.
For residents, the effect will differ depending on how their household is structured. Property owners will feel the tax increase directly through the city levy, while renters may see the utility change if water and sewer costs are billed to them or folded into lease expenses. The council had a budget work session set for May 13 from 1 p.m. to 4 p.m. at the Glendel Stephenson Municipal Building, giving officials one more public step before the budget is finalized for the new fiscal year.
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