Buffetown officials flag revenue drop, propose cuts and staffing changes in draft 2026 budget

Buffetown town manager Erin Nelson told the council at a work session April 15 that the town’s draft fiscal 2026 budget anticipates lower revenues and will require spending reductions and program prioritization.

Nelson said the draft assumes a sizable drop in sales-related revenues—she used a 25% reduction figure for sales tax, transient lodging (TRT) and resort taxes—and that, combined with other estimates, produces an approximate overall revenue shortfall she described as about 20% for the affected categories. "Everything is pretty well in line with what we were expecting for our initial budget," Nelson said, "but the big one would be, are there grants that we are fairly confident we will use before the end of the year?" She added that the town needs to identify projects that can be matched by revenues the town is confident it will receive.

Why it matters: Nelson framed this as the first draft in a multi-step budget season. The town’s choices about staffing, capital projects, and one-time transfers will determine whether the budget stays balanced without additional revenue.

Key items discussed

Projected revenue declines and assumptions: Nelson said she is using a 25% reduction assumption for sales tax, TRT and resort tax receipts and noted that those three categories together yield a roughly 20% reduction across the revenue mix once property and other taxes are considered. She also proposed a conservative adjustment to interest income, suggesting the interest estimate for next year could fall from about $45,000 to a range closer to $20,000–$35,000 depending on PTIF balances and any large capital withdrawals.

Special revenues and airport accounting: Nelson said the town will move airport hangar rent and related receipts into a separate special revenue fund going forward. "When we get all done with the proposed amendments and next year's, airport is gonna move into its own special revenue fund," she said, and she advised the council that any unspent hangar rent should roll into that fund and could be earmarked for matching funds on projects.

Staffing, bookkeeping and interns: To reduce costs Nelson proposed zeroing out the dedicated bookkeeper line for 2026 in the draft and instead expanding short-term intern wages to cover specific projects. She said the draft includes funding for up to three interns for two to three months each (roughly $14,000 total in the draft) and that interns should not be tasked with core bookkeeping work. Council members and staff raised concerns about overloading existing personnel if the town removes a bookkeeper. Councilmember Red Hornsby and others said the town needs a reliable bookkeeping solution rather than relying entirely on interns; Nelson said options include rehiring a bookkeeper, contracting out, or using temporary/part-time help but she noted some outside bookkeeping quotes she had received were cost-prohibitive.

Legal, planning and professional services: Nelson described a proposed legal-fee budget for 2026 of about $37,000, derived from averaging prior years excluding the two large lawsuits. She also discussed the potential use of the Hansen Group for a free review of the town’s general plan and a quoted fee for an airport overlay. Planning and zoning members attending the session told the council they consider the land-use clearance review by planning and zoning potentially redundant with building-department review; Nelson said the fee and process should remain unchanged in the draft budget until the council and staff decide whether to revise the master fee schedule.

Fire, EMS and other operating lines: Nelson noted that the $15,000 allocation for fire department supplies had not been drawn down and that the department had not submitted requests; she suggested the council consider whether the town should purchase supplies directly if the department cannot receive funds. Nelson said EMS training costs to date included one training and that unused funds would likely roll into next year. She also listed other smaller operating projections—e.g., recreation revenue near $24,000 in the draft—and said these are flexible if the council wants to adjust them.

Capital projects and prior-year appropriations: Nelson reminded the council that prior-year surpluses and appropriated fund balances have been held in PTIF for capital projects, and she asked whether some of those appropriated funds could be reallocated to cover administrative needs in a downturn. She said she would consult the town accountant about whether moving previously appropriated capital funds back to cover operating expenses is allowable.

Process and next steps: Nelson emphasized that this is a preliminary draft and that many numbers will be revised during the budget season. She asked councilmembers to indicate priority areas and to confer with department leads (notably Michael on roads and Melia on electrical grant timing) to refine proposed transfers and capital allocations.

Ending: The council paused the session for a short break while staff saved and reviewed the spreadsheet formulas; Nelson said she will follow up with more refined estimates after consulting the accountant and department leads.