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Bowie city manager lays out FY26 budget framework, warns of ‘tipping point’ in 2026
Summary
City Manager Byron Matthews presented FY26 budget guidance showing personnel growth, a strong fund balance and possible tax rate changes; council members pressed for scenario modeling and prioritized public safety staffing, recycling expansion and economic development steps.
Byron Matthews, city manager for the City of Bowie, presented the city’s fiscal 2026 budget guidance and five‑year projections, saying the city faces a likely “tipping point” in 2026 if current trends continue.
Matthews told the council the city has maintained a flat property tax rate for 14 years while continuing to provide core services and fund new development, and he outlined personnel and fund‑balance trends that inform the FY26 framework. “We see that in this current projection, that tipping point is gonna be in 2026,” Matthews said, referring to the point when recurring expenditures could outpace recurring revenues under the current plan.
The guidance explained that personnel is the largest portion of the general fund (about 54 percent), and that personnel headcount grew an average of about six positions per year over the last decade. Matthews described the city as a “pay‑as‑you‑go” jurisdiction that finances many capital projects from fund balance rather than long‑term borrowing, and he noted proposed tax increases in the five‑year projection: a 10‑cent increase per $100 of assessed value in 2026 and an additional 5 cents in 2028 (proposed, subject to council action).
Why it matters: the presentation set parameters the city manager will use to prepare a balanced budget for delivery to council in April under the city charter deadline. The numbers and scenario projections framed council members’ requests for further analysis and specific policy choices — particularly on public safety staffing, capital project timing and possible new revenue ideas.
Key points and numbers - Personnel: average increase of about six positions per year over the last 10 years. - Personnel costs represent roughly 54% of the general fund budget. - Proposed tax projection in the document: 10¢ per $100 of assessed value in 2026, plus 5¢ in 2028 (proposal originating in the adopted 2025 budget projections). - FY24 general fund expenditures: about $64,000,000; ending general fund balance reported at roughly $47,000,000, with about $18,000,000 unassigned. - Assessed taxable property value at end of FY24: about $8,800,000,000. - Fiscal policies described: fund balance minimum at 25% of annual expenditures; tax‑supported bond debt limited to 8% of assessed valuation; debt service ratio target not to exceed 10% of general fund revenues.
Council discussion and priorities Council members pressed staff for scenario modeling and for options that will extend the year in which revenues and expenditures come back into balance. Councilwoman Rogers asked whether a model existed showing when expenditures would exceed revenues under current trends; Matthews pointed the council to projection pages in the adopted budget book and reiterated the 2026 projection.
Council members emphasized several priorities for the coming budget cycle: fully funding core services (police, parks, trash collection, snow removal), examining debt affordability and the capital improvement program (CIP) financing strategy, and considering whether to temporarily postpone or reschedule some capital projects to avoid unsustainable transfers from the general fund to the CIP. Several members urged that public safety staffing receive particular attention. Council member Brady noted the department’s current staffing level and recommended analysis of the cost to add officers over multiple years: “We only have 65 or so for a population of 65,000,” Brady said.
Other policy suggestions and requests included: - Explore nontraditional revenue ideas such as large solar installations on city‑owned or county‑ controlled parcels; examine feasibility of rooftop and parking‑lot arrays to generate revenue or lower operating costs. - Continue emphasis on water and sewer recapitalization; request a lessons‑learned briefing on recent regional water outages to confirm risks and preparedness. - Expand recycling collection services to include food waste and yard waste if fiscally feasible and supported by grant opportunities. - Reimagine Bowie Town Center as a longer‑term strategic initiative to spur economic development and expand the tax base; the council asked staff to identify modest budget objectives to start the planning process.
Next steps and timeline Matthews said he will deliver a balanced proposed budget to council by the city charter date in April and that council should expect two budget work sessions and public hearings in April–May before a mid‑May adoption is typical. Council members asked for additional scenario models, clearer revenue forecasts (including any third‑party data on income tax projections), and a detailed analysis of incremental costs associated with new developments such as South Lake Milford.
Ending The presentation closed with an administrative reminder that staff will return with the proposed FY26 budget and that the council’s feedback tonight will be incorporated into the manager’s April submission. Matthews also noted that a police staffing update will be provided by the chief at the council’s February 3 meeting.
