Annapolis projects $6.7 million surplus for FY26; council briefed on revenue risks and one‑time funding uses

Annapolis budget staff presented the City Council on April 17 with a proposed Fiscal Year 2026 budget that projects roughly $6.7 million in surplus, continues no property tax rate increase and relies on a mix of recurring revenue growth and one‑time transfers to balance risk areas.

"This is a responsibility that we do not take lightly," said Jake Trudeau, budget manager for the City of Annapolis, as he opened the work session's budget overview. Trudeau and Assistant City Manager Vicky Buckland walked council members through revenue and expenditure assumptions, staffing changes, capital projects and reserves included in the proposed FY26 document.

The nut of the proposal: general fund revenue is projected at about $109 million, roughly $900,000 above budgeted FY25 projections, while expenditures are now projected to finish about $6 million under FY25 — producing an approximate $6.7 million surplus. City staff attributed the expenditure underrun primarily to vacancies across several departments, including police, recreation and parks, and planning and zoning.

Why it matters: the city’s recurring revenue is showing modest growth — staff project about $5.6 million in additional recurring revenue over FY25, led by approximately $4.5 million from property tax base growth — but officials warned the budget depends on one‑time funds and faces specific downside risks. Buckland noted the…