Meadow budget work session flags unapproved building-permit fee process and recommends revenue adjustments

At a public work meeting in Meadow, participants spent an hour reviewing multi-year budget worksheets and probing revenue estimates and line-item allocations ahead of next year's budget process. No formal votes or budget approvals were taken; the session was described repeatedly as an informal exercise to "knock some numbers around."

The meeting centered on three issues that participants said require follow-up: (1) a spike in building-permit receipts that appears in the current accounting line; (2) the town's use of a valuation-based fee recommendation from a third-party vendor called Sunrise to set permit charges, and whether that fee practice was ever approved by ordinance; and (3) several revenue estimates that staff recommended to leave at current budgeted levels, with targeted adjustments suggested for cemetery sales and miscellaneous lines.

Participants noted the building-permit line shows just over $12,000 collected year-to-date while the worksheet's prior estimate shows "75" (amount unit not specified on the printout). Staff said Sunrise runs a valuation worksheet to calculate a recommended permit fee based on valuation, and that Sunrise's summary sheet is the same used by other communities. Several participants said past practice had been a flat fee and that they could not find an ordinance approving the current valuation-based method. One participant asked for the town's historical permit records to be reviewed to confirm what homeowners paid in 2022 and 2023 and whether the valuation method was ever formally adopted.

On other revenue items, the group reviewed: general property tax (budgeted $8,400; receipts close to that figure), motor-carrier fees (budgeted 70; $40 collected to date as printed), and general sales and use tax (budgeted $80,000; about $53,000 collected through three quarters). Staff estimated the final quarter could add roughly $15,000 to sales-tax receipts but recommended leaving the $80,000 estimate unchanged for now.

Class C road funds were budgeted at $45,000 with about $44,000 received year-to-date; participants said that amount typically arrives monthly from the state (fuel tax allocations) but cautioned the legislature's latest session could affect next year's amount. Participants recommended leaving the estimate unchanged pending confirmation of the state allocation.

Cemetery revenue was budgeted at $5,000 but showed roughly $2,200 received year-to-date. A participant reported full-size lots priced at $350 and recommended lowering the cemetery revenue estimate; another participant proposed dropping the budgeted amount to $3,000.

Participants also discussed one-time federal pandemic-era funds, noting CARES Act and ARPA receipts were one-time revenues already spent (CARES money had been donated to the local school district), and that no additional ARPA/CARES revenue is expected. Staff said the pandemic-era line items remain on the worksheets for reporting purposes but are not active revenue sources going forward.

The meeting reviewed interest and reinvestment accounting: interest earnings from pooled investments are allocated among general, water and electric funds by percentage; participants noted monthly amounts fluctuate and recommended leaving the interest estimates as printed. Miscellaneous revenue and sale-of-assets receipts were not expected to materially change.

No formal decisions were made; participants asked staff to follow up with specific records and return to the council with reconciled figures before any public hearing or formal budget presentation. Items staff agreed to check include historical building-permit payments and the records showing whether the valuation-based fee schedule was formally approved.

The town set aside the hour before its regular council meeting for the discussion and emphasized that this meeting did not constitute approval of next year's budget or any spending changes. Staff said that if revenue or expenditure adjustments are needed later, the town would schedule a budget hearing before making formal transfers or amendments.