Bruceville‑Eddy council debates proposed 2025–26 budget, keeps 3% COLA and pauses TMRS increase; adds Friendly Oaks item

Bruceville‑Eddy — City officials on Aug. 4 presented a proposed fiscal 2025–26 budget that would fully fund current operations, raise the municipal property tax rate by 1¢ to 47¢ per $100 of valuation and draw on reserve funds for several capital projects, City Administrator Kent Manton said.

Manton said the proposed 47¢ rate “fully funds our current operations. It does increase the property tax rate by about 1¢ per $100 evaluation,” and estimated that the change would increase taxes by about $25 a year on a $250,000 home.

The proposal funds continued construction and early operating costs for the new sewer system, a package of water‑system improvements and street maintenance priorities, officials said. Council received a detailed review of reserve balances and potential pulls from those balances: $387,142 planned from the general fund and $546,492 from the water fund to balance the proposed budget as presented, Manton said. He also pointed to the sewer fund’s current outstanding debt—about $16 million—and said some sewer expenses remain unknown until the system begins operations.

Why it matters: Council must balance ongoing operating costs (salaries, utilities, service contracts) against one‑time capital projects and unknown liabilities tied to the sewer work. Residents and council members pressed for clear accounting of reserve draws and for prioritizing projects while protecting emergency balances.

Key decisions and context

Council held votes on several items that will change the draft budget before final adoption at later hearings. On employee pay, an initial motion to retain a 4% cost‑of‑living increase failed; the council left the COLA at 3%. A separate motion to raise the city’s TMRS employer match from 1.5:1 to 2:1 also failed; council preserved the 1.5:1 match. Council later voted to add the Friendly Oaks building item into next year’s budget. The meeting record shows the council also approved a construction settlement with contractor BlackRock Construction following a closed executive session.

Council members and staff repeatedly emphasized that some budgeted expenditures are discretionary capital purchases that would return to council for approval (the city’s single‑purchase threshold requires council action for higher amounts). Manton said many capital items are being proposed as reserve fund draws because staff wants to accelerate deferred maintenance while revenues permit.

Public comment and concerns

Several residents urged council caution on reserve spending and asked for protection of vulnerable residents. Longtime resident Herma Turner, addressing the public hearing on the budget, said local food insecurity and storm‑safety concerns merited higher priority in city spending. “What are you doing for the people of this community?” she asked council during the hearing.

Other public speakers and some council members urged conservative use of reserves because unknown costs tied to ongoing sewer work and pending contractor mediation could require unplanned payments.

Votes at a glance

- Order November 4, 2025 general election (mayor and two council seats): motion carried, unanimous vote. - COLA: motion to set 4%—failed; council kept a 3% cost‑of‑living adjustment in the draft budget (vote tally recorded in minutes as 2 in favor, 3 opposed). - TMRS employer match: motion to increase to 2:1—failed; match remains at 1.5:1 (vote recorded as 2 in favor, 3 opposed). - Add Friendly Oaks building item to 2025–26 budget: motion approved (vote recorded as unanimous on the record). - Approve settlement agreement between the City of Bruceville‑Eddy and BlackRock Construction: motion approved unanimously following executive session.

What council flagged for follow‑up

Council requested clearer project-level scopes before committing large reserve draws. Administration said the Hungry Hill road rehab is estimated at about $237,000 and would close and reconstruct a portion of the roadway; staff also noted that some road repairs tied to sewer work will be funded separately through the sewer contractor project. Council asked staff to seek additional engineering detail and to return recommended scope adjustments before the final budget adoption.

Next steps

City staff will refine line‑item numbers, further document planned transfers from reserves and return a final budget and tax‑rate hearing to council on Aug. 18 for adoption. The budget remains subject to council amendments before final approval.