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Paris finance staff outline FY2025-26 budget changes, propose 0.47239 tax rate and insurance increase
Summary
Interim finance director Beverly presented updates to the FY2025-26 budget including delayed police software, a waterline extension, projected general fund shortfall, an employer health-insurance increase from $650 to $700 per month, and a proposed tax rate of 0.47239.
Interim finance director Beverly presented updates on the proposed fiscal year 2025-26 budget and asked the Paris City Council whether it wanted additional workshops before finalizing the plan.
Beverly said key changes since the last briefing include postponing a planned police software purchase into the next fiscal year after staff found compatibility issues with fire and EMS, adding a waterline extension along the loop to address a developer's connection needs, and adding a financial-forecasting strategic plan (NextGen) to the work program. The city did not grant a disannexation request tied to one developer.
Beverly said the council should expect a projected general-fund shortfall: general-fund revenue of about $35,467,000 against expenses of about $37,569,000, a projected use of reserves of about $2,100,000. The water and sewer fund is projected with revenue of about $22,300,000 and expenses of about $22,000,000, leaving a projected positive balance near $351,000. The airport fund projection includes a planned transfer of $93,700 from the general fund.
On employee benefits Beverly said the city currently contributes $650 per month per plan toward staff health insurance and proposed raising that contribution by $50 (to $700) to help offset an estimated 8% premium increase. Beverly estimated the employer cost of that increase at approximately $151,000 to the general fund and $50,000 to the water-sewer fund.
Beverly presented a proposed tax rate of 0.47239 and said the increase is driven primarily by debt-service obligations and that the council could adopt the de minimis rate. Council members asked questions about insurance contracting and the water-rate and debt-service drivers. Beverly said the city had contracted NextGen for rate studies and forecasting and would schedule a workshop if council members wanted more detailed review.
Council instructed staff to post and hold a budget workshop slot in case members needed one; staff will return with further detail on insurance bids, forecasting results, and any recommended rate adjustments before final adoption.
