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Shelton reports $3.1 million positive variance for 2025; council discusses rates and staffing
Summary
City finance staff reported an estimated $3.1 million positive variance for 2025 and a general-fund reserve of roughly $3.4 million; council members pressed on sewer rates, a 2027 rate study and possible staffing supplements to support capital projects.
The City of Shelton presented a year‑end financial report for 2025 showing what staff described as "a positive budget variance of 3,100,000.0," city staff said during the council's Feb. 17 meeting.
An unidentified finance staff member filling in for Interim Finance Director Terry Schnitzer told the council the package shows strengthened revenues — notably sales tax up about 10% over budget — and a total estimated positive variance of roughly $3.1 million for the year. The presenter said the city's 20% reserve equates to about $3.4 million and read an unreserved fund balance as $5.1 million; one council member read that packet line as $5.7 million.
Why it matters: the unexpected positive variance gives the city more flexibility for one‑time needs and could allow the council to consider supplemental staffing or delayed capital work. The presenter said staff would come back with recommendations: "I would like to consider coming back to council with a supplemental that would address some staffing requests," the finance presenter said.
Council members asked whether sewer and water customers could see relief from higher rates after the reported sewer fund balance increase. Staff said no immediate rebate was planned and pointed to an upcoming, city‑wide rate study. "We are scheduled to do our rate studies across all of our utilities in 2027," the presenter said, adding the study will better align operating and capital costs with rates.
Staff flagged several capital projects that are driving utility fund needs, including a reclaimed water tank and headworks work, and noted statutory certification requirements for operating wastewater facilities. Council members asked for clearer cost data and requested an open‑house visit to the wastewater treatment plant so residents can see how utility dollars are spent; staff expressed support for public engagement.
Next steps: staff said a formal rate study is planned for 2027 and promised to return with supplemental staffing proposals and specific project cost details for council consideration.
