Taylor council hears mayor's fiscal 2026 budget overview; mayor proposes $2.9M use of fund balance

City of Taylor staff presented the mayor's proposed fiscal year 2026 budget at a council study session, describing a mayor's proposal that would use about $2.9 million of the general fund balance while keeping an estimated year-end fund balance above $20 million.

Jason (Budget and finance staff) opened the session with an overview of the budget document and accounting basis, saying, "We just do the cash basis budget because that is the state required, basis for the budget." He summarized FY25 adjustments, revenue and expenditure changes and the mayor's FY26 assumptions.

The mayor's proposed general fund would draw $2.9 million from fund balance and fund just over $3 million in one-time capital outlays, most notably purchases for the fire department including previously approved fire engines. Staff projected an ending FY26 general fund balance of about $20.3 million, roughly 39.3% of operating revenues under the mayor's plan. For the current fiscal year, staff said FY25 amendments increase projected additions to fund balance to about $524,000, bringing the projected FY25 ending balance to about $23.2 million (about 39.8% of operating revenues).

Revenue lines called out by staff included a projected decline in licensing and permit revenue driven by lower cable franchise receipts, a state grant revenue increase of about $806,000 (including recognition of enhancement grants tied to recently received ambulances and a pavilion at the Petting Farm), a courts-related fines and forfeitures increase of about $505,000…