La Plata council reviews FY2026 financial plan; pension, Dorchester center and capital grants draw questions

The Town of La Plata held a public hearing May 13 on the proposed fiscal year 2026 financial plan and budget, examining revenue forecasts, fund balance projections, capital grants and pension options for public safety and public works employees.

Assistant Town Manager Michelle Minor and Treasurer Larson presented the staff recommendation: the general, enterprise and capital funds were recommended as presented. “Madam mayor and town council, the general fund, the enterprise fund, and the capital fund, we recommend as presented,” Treasurer Larson said.

Council members asked detailed questions about revenue drivers and long-term projections. Councilman Eric Sampson asked what was driving an 78.4% increase tied to Heritage Green and an 8.7% rise in real property tax receipts cited in the memorandum. Treasurer Larson said the real property rise was primarily from development and that the Heritage Green figure related to payments tied to the series bonds associated with that development.

Staff told the council the town projects a $302,620 surplus for FY2026 after accounting for capital draws and that unassigned fund balance would be about $861,250. Treasurer Larson emphasized that some one-time items — including ARPA support used in prior years and unusually high investment earnings — will not recur.

Council members pressed staff on the status of two outside studies. Minor said a Baker Tilly water/utility rate study is incomplete; she said staff would provide the available material for council review. The town also discussed capital projects tied to pending and secured state grants, including several grants for the Dorchester Community Center; staff said they had recently been informed additional grants had been secured.

Pensions were a major subject of council discussion. Assistant Town Manager Minor described the process for joining the Law Enforcement Officers’ Pension System (LEOPS), saying an application and an initial valuation fee of about $7,305 would be required and that participation requires purchasing service credits for participating employees. “The process takes at least 10 months,” Minor said, and she described an earliest possible 07/01/2026 effective date if the town proceeds on that timeline.

Council members asked whether the town’s roughly $302,620 projected surplus could be used to fund a pension buy-in. Staff said any large, ongoing benefit would require long-term revenue planning and likely additional funding beyond one-year fund balance; staff cautioned that pension buy-ins are long-term commitments that require actuarial valuation and a council decision on whether to proceed.

Councilmembers also pressed on capital projects and associated operating costs. Staff confirmed the town had secured a $500,000 state grant for the Dorchester Community Center and said the grant is a drawdown that requires eligible expenses to be submitted before funds are received; if the town does not incur eligible expenses, it will not receive the grant.

After discussion, a motion to keep the public record on the FY2026 financial plan and budget open until 4 p.m. May 20 passed by roll call: Mayor James and Councilmen Guttenberg, McCormick, Sampson and Johnson all voted aye.

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What’s next: The council will review written comments submitted by 4 p.m. May 20 and may alter the budget or fee schedule in subsequent meetings; staff committed to deliver the incomplete Baker Tilly study material to council members for review.