Castle Valley council adopts amended FY2025 budget after public hearing; proposes FY2026 as tentative plan

Castle Valley officials opened a public hearing May 21 and approved an amended fiscal year 2025 budget, then discussed a tentative FY2026 budget that will be finalized after the town’s August property-tax hearing.

The amended FY2025 budget includes capital transfers tied to recent equipment purchases and drainage projects. A staff member explained that about $147,000 was used to buy heavy equipment this fiscal year and that roughly $40,000 was applied toward the town’s portion of the Upper 80 culvert crossing. Council opened and closed the public hearing during the meeting and subsequently voted to adopt the amended FY2025 budget by roll call.

The hearing drew questions from residents about how the transfers affect capital reserves and the upcoming FY2026 proposal. Officials said the town’s capital fund balance rose to “a little over $400,000” after recent payments and transfers; that capital balance will be used for planned projects in the coming year, including culvert and drainage repairs. Town staff and residents also discussed grant reimbursements: some projects require the town to pay up front and wait for reimbursement, and obtaining grants often depends on matching funds.

Councilors and residents pressed staff for clarification on audit thresholds and state procedures. Staff explained that amending a budget midyear can change the town’s threshold for state audit treatment; budget increases that would raise the tax rate trigger additional statutorily required notices and later adoption steps in August/September.

Residents raised road maintenance as a consistent concern, saying many side roads receive only minimal upkeep and that recent flood damage shifted funds to equipment repairs and drainage stabilization. Staff said operational road funds prioritize the worst spots, while larger one-time projects are funded from capital reserves built up over years and occasional tax adjustments.

Councilors advanced the FY2026 budget as a tentative plan to be treated as the budget until the formal hearing and adoption process later this summer. Officials said the FY2026 proposal includes modest increases targeted at road crew hours and maintenance; major capital projects (such as the Castle Valley Drive chip-seal and the Castle Creek culvert work) will continue to be funded from the capital account and from specific surpluses saved over time.

The public hearing opened and closed during the May 21 meeting. The town recorded the roll-call vote adopting the amended FY2025 budget; the FY2026 proposal was likewise approved as the tentative budget to move forward to the August hearing.