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Council adopts 2026 budget; finance director warns on state property tax changes
Summary
Maryville council approved Ordinance 25-31 setting appropriations and tax rates for 2026; the council approved a $12.9 million general fund budget and heard a warning from the town's financial adviser about potential revenue loss from Senate Enrolled Act 1 and property-tax deductions.
The Maryville Town Council approved Ordinance 25-31, the town's appropriations and tax-rate ordinance for 2026, after a second reading and roll-call vote. The council's vote to adopt the budget was recorded 6-0.
Trista, the town's financial adviser, told the council the General Fund for 2026 is budgeted at about $12,900,000 and that the town's assessed value has grown by approximately 4.07 percent. "The town's assessed value now is just under $2,600,000,000," she said during the presentation. Trista warned that state legislation (referred to in the meeting as Senate Enrolled Act 1) and other deductions could sharply reduce property-tax revenue when the Department of Local Government Finance calculates final figures in April.
Trista walked council members through key assumptions: department heads and the Budget Finance Committee worked for months on the budget; many departments made cuts; parks funding has been moved primarily to a separate parks fund; and the town is relying on the statutorily allowed 4% growth in the maximum levy (about $336,000) while noting that new circuit-breaker calculations and additional deductions could decrease net collections. She said the state's LSA estimates a potential loss to Maryville of about $800,000, though her firm did not expect the full projected loss. Trista explained the timing: assessed values are finalized and appeals settled before the DLGF issues final numbers; additional credits and deductions mean the final impact will not be known until April.
Council members discussed the timing and expressed support for delaying employee raises until April when more certain revenue information will be available. The council also noted the town's approach to the police contract renewal was consistent with prior years' practices to preserve budget flexibility amid uncertainty.
On the consent/general orders side, the council earlier approved Ordinance 25-30, an appropriation of additional money ($33,000) for the Motor Vehicle Highway restricted fund; that motion passed on first reading with a roll call of six in favor.
After the votes the council signed and filed the approved paperwork as required by state procedure.
