La Plata — The La Plata Town Council on Dec. 9 opened the Fiscal Year 2027 budget process, directing staff to use Government Finance Officers Association (GFOA) guidance on reserves and to prioritize essential services while preparing draft budget options for council review.

Town Manager Chuck Stevens told council the budget is “a decision‑making tool,” walked members through budget fundamentals and the calendar, and asked for policy guidance on a set of questions that will shape the FY27 draft. Stevens recommended adopting a reserve policy consistent with GFOA’s minimum (about 16.7 percent, or roughly two months of operating costs) and explained that doing so would free some reserves for other priorities while also including replenishment language in the policy.

Several council members supported the recommendation. “I’m in support of the GFOA minimums,” Councilman Guttenberg said during the discussion, urging rules that restrict the use of reserves so cash is not treated as an unlimited source. Members clarified they expect reserves to be used primarily for one‑time costs, not ongoing operating expenses, with council able to amend the budget in extraordinary circumstances.

The council also set broad policy direction on other issues staff will reflect in the draft budget: prioritize protecting essential services such as water, sewer, roads and public safety; favor recovering full costs with user fees where appropriate; and use a blended approach to capital financing (pay‑as‑you‑go where possible with carefully used low‑cost debt for large projects).

Stevens outlined the calendar: departments will prepare worksheets in January, state revenue projections arrive in February, staff will present a draft budget no later than March 6, the public comment period will begin March 10, and a March 17 workshop is planned. Final adoption is targeted by May 12, 2026, to meet county and state reporting deadlines.

What’s next: Staff will incorporate the guidance from the Dec. 9 conversation into the FY27 draft, present revenue projections in February and return a public draft for council review in March.