Fred Wright, the city controller, presented an overview of the proposed 2026 budget and warned the Greenwood City Council that state-level changes to property-tax policy will create uncertainty for revenues and planning.

Wright said the state’s estimate of revenue loss for Greenwood from circuit breakers and new homestead credits is about $3,232,200 for 2026, a 47% increase from 2025 estimates. “We do know that we will be somewhere around $3,232,200 of losses,” Wright said, and he cautioned that the Department of Local Government Finance estimates have in past years tended to be low.

Wright reviewed several revenue and cost drivers the council should expect: the property-tax growth factor is limited to 4% for 2026, which he said increases city property-tax dollars by $755,396 but still leaves a net revenue shortfall compared with the estimated state-driven losses. He said local income-tax growth is projected at about 5.5% for 2026, and that in 2028 the state’s new local income-tax system will require municipalities to set local rates, raising additional uncertainty because the Department of Revenue has not yet produced municipal-level data.

On expenditures, Wright cited inflationary pressures across departments — including health-insurance claims, technology subscriptions, maintenance, parts and labor — and highlighted a projected large increase in health-claim funding the city is budgeting for, which he described as an anticipated growth in claims of about 80% (this is city-funded plan exposure below stop-loss levels). He also identified capital and infrastructure needs: Main Street phases 3 and 4, Smith Valley Road widening, and a replacement for Fire Station 92, which he said has structural issues and was built for volunteer staffing.

Wright proposed several personnel-related budget items: a $1,000 premium paid to eligible full-time nonpublic-safety employees (paid $250 per quarter) and a 1% permanent salary increase for merit public-safety employees so the increase will count toward pensionable pay. He also said elected officials would not receive a pay increase for 2026 and that the administration is prioritizing cash-balance preservation to avoid depleting reserves.

Wright outlined the timeline: the ordinance and salary ordinances will be introduced at the next council meeting, with a public hearing and first reading in early October and a hoped-for second reading later in October; the city must submit budget material to the Department of Local Government Finance and the DLGF must certify by Jan. 15. He emphasized that the ultimate impact of some state changes will not be known until tax bills are issued in April 2026.

Wright said staff will post the full budget documents online, continue to monitor state guidance, and pursue legislative relief where possible.