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Indian Trail manager outlines lean FY26 budget; no new staff except one reclassification, seeks 2% COLA
Summary
Town manager presented a high-level FY26 budget preview: lean operations, a single reclassification request, a proposed 2% cost-of-living adjustment (COLA) and 3% merit pool, and preliminary revenue estimates pending the county tax base.
Town Manager (name not specified in transcript) told the council the FY26 budget development will remain conservative and that final revenue numbers depend on county and state estimates still pending. He said the manager will deliver formal recommendations in May and the council will hold a second budget meeting next month for deeper review.
On staffing and compensation, the manager said the town government is not requesting new positions this year aside from one reclassification: "With the exception of 1 reclassification, the town government is not asking for any additional people," he said. He asked the council to note, however, that some departments remain markedly understaffed and will need attention in future budgets.
Compensation proposals and benefits: the manager said the budget includes a proposed 2% COLA and retains a 3% merit pool, and highlighted reclassifications in finance. "We are recommending a 2% COLA for the city council and for the employees. And we'll keep the 3% merit in place," he told the council. The manager also noted an estimated 10% increase in health insurance costs.
Revenue assumptions: staff presented preliminary revenue forecasts that the manager said were subject to revision when the county sends the official tax-base estimate. The manager described a mix of modest changes across revenue lines: an estimated 2% increase in sales tax, a 5% increase in beer and wine tax receipts, a 10% projected increase in parks and recreation revenue, and a projected 16% drop in planning revenue driven by a slowdown in plan-review fees.
Why it matters: the manager emphasized a 10-year planning horizon for capital projects and noted the 5% capital-reserve policy may not fund the current list of proposed capital projects. "You take 5% that goes to the capital reserve. That 5% can't handle any more projects at this point," he said, urging councilors to consider trade-offs or different funding strategies for multi-year capital projects.
Next steps: the manager said staff will refine revenue and tax-base figures when county and state estimates are available and present a formal recommended budget in May. Council and staff agreed to further review and follow-up prior to the formal adoption process.
