Town manager presents FY26 budget; council debates police staffing increase and capital priorities

Town Manager Danny Davis presented the proposed fiscal year 2026 budget, outlining revenue projections, proposed staffing changes and capital projects, and asked council to approve a schedule of upcoming budget public hearings.

Nut graf: The proposed budget would increase general-fund expenditures largely to fund strategic initiatives and operational needs, including adding two police officers to provide more double-coverage during busy evening hours. Council members requested a detailed programmatic review of police-line items before committing to recurring staffing increases, and they discussed how the town should balance capital set-asides for projects such as Asbury Church and South Madison Street with a shrinking contingency.

Davis said the town expects overall revenue growth of about 5.7%, driven by meals and transient-occupancy taxes and interest income; he also noted $9.5 million in new construction value that expands the tax base. He presented an advertised real-property tax rate of $0.12 per $100 assessed value (12¢) and described options for equalizing or reducing the rate.

On public safety, Davis and Chief Jones proposed funding two additional officers and a new 2 p.m.–2 a.m. shift to improve evening and weekend double-coverage. Staff said this change would increase recurring costs (personnel and benefits), with some one-time vehicle and equipment costs to be funded from the unassigned fund balance. Davis said the recurring annual increase associated with the police changes was in the low hundreds of thousands (discussion referenced roughly $240,000–$275,000 recurring), with only modest projected overtime savings.

Council members pressed for a programmatic, zero‑based review of police activities to identify discretionary line items and ensure the increases focused on core needs. One council member asked staff to return with a line-by-line review and to validate which items are operational necessities and which are discretionary. Davis and the chief agreed to perform that review and present results for council consideration.

Davis also reviewed the capital-improvement plan (CIP): he proposed a placeholder of $1.5 million for Asbury Church (reflecting a prior $1.05M commitment plus an additional proposed allocation), $750,000 for South Madison Street with options for lower-cost interim solutions, and investment in utility capital including SCADA replacement and water-main work. He noted a proposed 3% utility-rate increase given rising consumption and equipment needs.

Ending: Council set upcoming budget dates (public hearing on the tax rate at the next meeting, adoption steps in March–May) and asked staff to return with the police programmatic review and more precise costings for capital options before final budget adoption.