Corinth council adopts $30M FY2026 budget and sets tax rate at $0.53709 per $100

Corinth — The Corinth City Council on Sept. 18 adopted the fiscal year 2026 budget and a property tax rate of $0.53709 per $100 of assessed valuation, approving a set of related ordinances and rate changes in unanimous votes.

Finance Director Lianne Bunzelmeyer told the council the budget reflects roughly $27.5 million in general fund revenues and $30.0 million in expenditures, with personnel costs the largest line at about $20.2 million (roughly 67% of the budget). Bunzelmeyer said certified value growth this year was about 3.48%, with new value added of approximately $117,000,000 generating about $631,000 in revenue. She said the proposed tax rate would result in an annual tax impact of about $140 for the average homeowner (average home value stated as $433,517). Bunzelmeyer also told the council the city had to absorb roughly $1.0 million in revenue reductions tied to state changes and other factors (including HB 9 and impacts from the senior tax freeze). (Lianne Bunzelmeyer)

Public comments focused on the tax increase and residential impacts. "We shouldn't be expected to continue shouldering the majority of the city budget due to improper planning," resident Kimberly Couch said, and added she was "adamantly against the property tax increase" and concerned about multifamily development and traffic. Arlene Carroll Crocker asked council to "please make adjustments" to the amounts requested, saying some homeowners would see double-digit percentage impacts. Larry Warden argued a large share of the proposed revenue increase would fall on existing homeowners rather than new development. Mike King asked for a timeline or projections for retail recruitment before relying on future sales tax to lower property tax burdens.

City Manager Campbell and multiple council members emphasized the long budgeting process and said staff and council considered alternatives. Councilmember Burke thanked staff for producing what he called "an excellent budget" and noted the many workshops and follow-up meetings that informed the proposal. Campbell and staff said some cuts were temporary and could be restored in 2027 if growth returns.

The council also approved several budget- and finance-related actions in the same meeting (all recorded unanimous):

Votes at a glance

- Ordinance 25-09-18-43: Adopt FY2026 budget and first year of the CIP (approved unanimously; roll call affirmed). - Ordinance 25-09-18-44: Adopt tax rate of 0.53709 per $100; motion compared proposed rate to the prior year and to the no-new-revenue rate (approved unanimously). - Ordinance 25-09-18-40: Amend Code §50.16 to increase water and wastewater rates as proposed (approved unanimously). - Ordinance 25-09-18-45: Accept 2025 tax roll and anticipated 100% collection rate (approved unanimously). - Ratification: Separate truth-in-taxation vote to ratify the property tax increase reflected in the FY2026 budget (approved unanimously). - Resolution 25-09-18-09: Approve compensation plan (3% COLA included) for employees (approved unanimously). - Ordinance 25-09-18-47: Adopt revised personnel policy manual (holiday and comp-time changes) (approved unanimously). - Ordinance 25-09-18-46: Authorize agreement with Lake Cities Chamber of Commerce for hotel-occupancy tax use ($5,000) (approved unanimously).

Budget details and clarifications

Staff described a combination of cuts and one-time transfers used to limit the tax-rate increase: roughly $1.0 million in cuts, salary-savings budgeting ($373,000), enhanced-service reductions (~$298,000), three frozen positions (~$347,000), and elimination of a one-time internal transfer made the prior year. The budget includes seven CIP projects totaling about $3.7 million funded largely by reallocations; staff said no debt issuance was included for the utility rate study period and that the city is applying for a $5 million utility relocation grant to offset future costs.

Water and wastewater rates

As part of the fiscal package, staff presented the final year of a three-year Raftelis rate plan and proposed a 3% across-the-board increase for water and wastewater (fixed and volumetric). Bunzelmeyer said the average residential bill (8,000 gallons) would rise by about $4.23 per month under the proposed 2026 rates. Council approved the ordinance to amend utility rates unanimously.

What happens next

Council members said the council will monitor implementation and revisit restored items if growth materializes. Several council members urged continued resident engagement in budget workshops. The council adjourned following the business agenda.

Sources: Finance Director Lianne Bunzelmeyer presentation and staff reports; public comments by Kimberly Couch, Arlene Carroll Crocker, Larry Warden, and Mike King; motions and roll-call votes recorded in the council meeting transcript.