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Timnath adopts $90M rec‑center financing plan, budget and new sales tax to pay for it
Summary
Council adopted the 2026 budget and an ordinance implementing a voter‑approved sales and use tax increase to fund a new recreation center. The budget includes $90 million in rec‑center financing, $17 million for design and an estimated $6.7 million in dedicated sales tax revenue annually; council also set staffing and capital priorities for 2026.
The Timnath Town Council adopted its 2026 budget on Dec. 9 and approved implementing a voter‑approved increase in the town’s sales and use tax to finance a planned recreation center and related capital work.
Finance staff described the large financing package for the rec center: "The big one, of course, is the rec center design at $17,000,000," finance staff told the council, and the rec center financing plan includes $90,000,000 in proceeds, an estimated $6,700,000 in dedicated sales tax revenue and planned debt service estimated at $5,200,000. The budget resolution and accompanying ordinances allocate $38.6M for capital improvements in 2026 and carry a five‑year projection that the town says will remain structurally balanced through 2030.
Council also implemented the voter‑approved ballot measure by adopting code changes to set the sales tax and related rates. Staff summarized the change: "The sales tax will be increased from 3% to 4.25%. Food for home consumption will go from 2.25% to 3.5%. Building materials use tax and motor vehicle tax will go from 3% to 4.25%. These changes are all effective 01/01/2026, and the revenue will be dedicated to the future recreation center." The council recorded a unanimous vote on the budget and the implementing ordinance.
In addition to capital investments for the rec center and road projects, the budget includes modest personnel changes (net FTE rising to approximately 87.75), anticipates rolling forward $5.9M in capital projects from 2025 and projects capital savings of roughly $1.7M from under‑budget project completions. Staff also discussed a planned debt issuance in 2027 of up to $14,000,000, noting that savings or 2026 performance could reduce that amount.
During public comment Dennis Tricota urged the town to strengthen performance measures and transparency in the budget documents; council asked staff to return with a working reserves policy and additional detail on options for funding an open‑space reserve. The council adopted the budget by roll call vote.
