Mayor announces $257,000 terminal‑tax reduction; council refers 2022 budgets to special finance meeting

Mayor Payne opened the council's budget discussion on Sept. 21 by telling members the city had received a reduced terminal‑tax allocation that lowers projected revenue by roughly $257,000 and complicates CIP planning for the next five years.

"The reduction from last year is about $257,000," Payne said, explaining that the terminal tax allocation formula is complex and that pandemic‑era fluctuations in construction and asset valuations can change the city's share of statewide allocations. He said staff would work with the finance team to prepare a revised recommendation and warned that assumptions of continued revenue growth were no longer prudent.

Councilors asked detailed questions about how the change would affect the five‑year capital improvement plan (CIP). During the exchange, one councilor characterized a plausible five‑year impact as "probably closer to $5,000,000" when projected across multiple years; the mayor and finance staff described that as a ballpark estimate and urged conservative projections.

Because time is short to meet tax‑levy and hearing deadlines, Payne proposed releasing a revised budget recommendation to the council by the end of the week and suggested the finance committee or a committee‑of‑the‑whole review the amendments. The council voted to refer all four budgets to a special finance committee meeting at 4:30 p.m. Tuesday, Sept. 28, with staff aiming to deliver updated materials by Friday.

The referral does not adopt a final budget; councilors said the special finance committee will review the mayor's proposed adjustments and return recommendations to the full council before formal adoption.