Finance presents FY26 recommended budget; property tax, fund-balance restoration drive changes

The Budget and Finance Committee heard a presentation from the finance director and budget staff on the mayor’s recommended fiscal year 2026 operating budget, a $3.8 billion plan that relies largely on increased property tax revenue and restorations to fund balance targets.

The presentation, delivered by Janine Reed, Director of Finance, and Erin Pratt, budget officer, outlined five pillars of Metro’s financial condition and said the FY24 audit was “clean” — an unmodified opinion from external auditors. Reed said the government and enterprise net position both increased in FY24 and that the administration received no material weaknesses from the auditor.

Officials said the recommended FY26 budget totals about $3.8 billion, a 15.6% increase driven by a combination of new revenue, a limited use of fund balance and accounting shifts tied to a USD/GSD study. “Our current budget stands at $3,800,000,000,” a finance staff member said. Finance said approximately $529 million of the increase is split between $20…