Florence council backs budget built on existing levy amount and supports 4% merit framework; funds set for wastewater, roads and park bathrooms

Florence — Town staff and council members on Monday used the first FY26 budget workshop to set the working framework for next year’s budget: keep the current levy dollars for existing properties while capturing new-construction revenue, implement a merit-based pay program funded at 4 percent and advance multiple capital projects including wastewater upgrades, transportation improvements and park bathroom design.

The town manager’s presentation said the FY26 budget totals roughly $97.8 million, with major capital lines including about $21.5 million in wastewater work and $15.9 million in transportation projects. Staff told council the proposed general fund is balanced for FY26 and that council action on the tax levy itself will come later in June; tonight’s discussion was a request for council consensus to set a budget baseline.

Why this matters: Florence is facing reductions in state-shared revenues and rising capital needs for water and wastewater infrastructure, while also competing regionally for public-safety and utility staff. Council’s near-term decisions shape whether the town preserves service levels, funds capital work, and keeps employees’ pay and benefits competitive.

Council direction on the levy

Finance staff presented five levy options. Councilors coalesced around the option that holds the town’s levied dollar amount steady for existing property owners (the option included no increase to taxes on existing properties, while new construction would pay its share). Staff said FY25 assessed value for the town was about $150.3 million and FY26 is budgeted at about $163.0 million (an 8.9…