City Manager Luke laid out the framework for Norwalk’s fiscal year 2027 budget during a dedicated council work session Jan. 15, telling councilors the key decisions are which capital projects to pursue, what base wage adjustment to adopt and whether to adjust the city’s levy.

Luke emphasized that Norwalk’s taxable valuation has grown and said that while the city is in a healthy growth phase, much of the added commercial and industrial value is initially diverted to tax increment financing (TIF) agreements and therefore does not immediately flow into the general fund. “Do you want to lower the tax levy?” Luke asked councilors as part of weighing the tradeoffs among levy changes, CIP spending and staffing choices.

Finance Director Jean provided the revenue context that shapes those questions. Jean reported a one‑year taxable growth figure of about 9.07% but said recent state changes reduce the city’s ability to capture all of that growth as revenue; the city is projecting to capture roughly 5.9% in revenue under current rules. Jean noted that the city expects to receive about $381,000 in new general‑fund revenue in the coming year, and that the total general fund is roughly $12 million.

On personnel costs, Luke recommended a 3% base wage adjustment for FY27, citing metro comparables and recent changes to the city’s deferred compensation match. He described that figure as the budget assumption while allowing that merit and step increases could push some individual adjustments above that base.

Councilors pressed for clarifications on how much of requested staffing additions would affect the general fund versus enterprise or other dedicated funds. Luke agreed to provide a breakdown showing general‑fund impact by line item and said staff will supply a full staffing‑plan spreadsheet before the next meeting.

The presentation also previewed the capital improvement plan and long‑range goals tied to the city’s 2035 master plan, including corridor infrastructure near I‑35 and a Great Western Trail connection for west Norwalk. Luke said staff will schedule a public hearing for the CIP on Feb. 5 and provide a smaller set of recommended active projects for council review.

Next steps: councilors and staff will review detailed line items, a consolidated CIP document and a staffing‑plan spreadsheet at upcoming meetings before formal budget adoption.