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Town manager urges conservative budget planning; recommends 25% drop in tourism-related revenues
Summary
At an April 8 Blufftown work session, Town Manager Erin Nelson presented a fiscal overview and recommended planning for a roughly 25% drop in tourism-related revenues for FY2026. Council members asked for follow-up work sessions and directed staff to refine amended FY2025 figures before public hearings in May.
Erin Nelson, Blufftown town manager, opened the work session with an overview of the town's fiscal position and upcoming budget schedule, saying the presentation was an overview rather than a formal proposed budget. Nelson said March financials show no major concerns for the current year but stressed the need to prepare for potential revenue declines tied to lower tourism.
"Realistically, I think we should probably look at about a 25% reduction in our core taxes," Nelson said, referring to sales tax and transient room tax (TRT) as the town's largest revenue sources. She noted property tax revenue (about $35,000 per year) is a much smaller share and suggested keeping those figures roughly the same for planning purposes.
Nelson told the council she will review the March financials more closely over the next week and expects to propose any needed adjustments to an amended FY2025 budget. She said state energy grants and a portable generator grant are items likely to require explicit inclusion in any amended budget so the town can spend the funds if needed before fiscal year end.
Council members discussed priorities to protect if revenue declines occur. Linda Sosa and others emphasized keeping funding for emergency medical technicians and business-support marketing intact; several members also said administrative and employee costs should be preserved where possible. Nelson described her approach to preparing the FY2026 tentative budget: average recent years (excluding COVID years) and then apply the 25% reduction to major tourism-related revenues while treating fees and licenses as more stable.
On schedule, Nelson said the town must hold a public hearing at the May 6 meeting and recommended at least one additional work session in mid‑ to late April to finalize numbers and the capital improvement plan before rolling out the budget.
The council agreed to schedule an extra work session the week of April 15 and to have staff reclassify any miscategorized March receipts before the amended budget is drafted.
Votes at the end of the work session moved the meeting into a special council meeting by voice vote; the motion passed on an aye vote with no recorded roll-call tally.
