Town Manager Presents Proposed FY 2026 Budget; Council Weighs Priorities and Funding Gaps

Town of Nashville staff presented the proposed fiscal year 2026 budget, which the packet shows would take effect July 1, 2025, and would include a mix of operating and one-time capital items that staff said require use of a portion of fund balance.

Staff described the proposed budget as balanced on paper but relying on one-time appropriations from reserve for nonrecurring expenses. Items highlighted included funding for a third police investigator, a new garbage truck, continued sewer inflow and infiltration (I&I) work, sidewalk ADA compliance and a proposed modest pay increase plan tied to a 3% cost-of-living adjustment for employees.

Staff told council the proposal includes a new garbage truck estimated at $400,000; the town would use about $311,255 from the vehicle capital reserve to reduce the cash needed up front. Town staff said the vehicle reserve will be replenished annually so the town can maintain a four‑year replacement schedule for refuse trucks.

The proposed sanitation fee schedule in the packet increases recycling from $6.50 to $7.50 and raises the overall sanitation charge by about $4.50, staff said, producing projected sanitation revenues reflected in the packet.

Police funding and technology needs featured in the discussion. Chief Shockley described the department’s use of automated license-plate readers (Flock cameras) and related recurring costs: "Every time that we purchase a Flock camera, it's about $3,600, for each camera, and an annual fee that's reoccurring of $3,000," he told council, and said the department has relied on asset-forfeiture revenue for purchases while recurring fees have been charged to general fund or fund balance.

Staff also summarized FEMA buyouts in the Indian Trail area: six of 13 property owners have agreed to buyouts, three properties have been vacated and demolition crews may begin work in the coming months, staff said.

Council and staff discussed capital needs and constraints: several HVAC units at town facilities are aging and staff proposed setting aside funds for replacements, and staff proposed adding $300,000 in the water and sewer fund for a vehicle storage/garage at Public Works to protect large equipment from weather. Staff noted an existing $1.5 million allocation from Nash County is expected to be available for sealing leaky sanitary sewer manholes, which would support the town’s I&I reduction program.

Clover Park improvements were highlighted as a near-term funding decision. Staff said the low bid for the park work exceeded the project estimate by about $200,000; staff will present options at the follow-up budget work session next Wednesday and noted a legislative funding request to Representative Alan Chester is pending that could cover the difference.

Council members asked several staff to return with additional detail at a scheduled follow-up budget session. Staff repeatedly emphasized that some items in the proposed budget are one-time appropriations from fund balance and that recurring operating costs (including COLAs) could require ongoing revenue adjustments in future years.

No formal adoption of the FY 2026 budget occurred at this meeting; the council scheduled further review at the follow-up budget session and asked staff to provide additional backup, cost breakdowns and options for the Clover Park bid, sidewalk program and pay/benefit scenarios.