Morgantown staff present cautious FY2026-27 budget after $3.2M carryover recalculation

Morgantown— Finance Director John Ferguson on Tuesday presented the city's proposed fiscal year 2026-27 budget to the Committee of the Whole, saying a recent accounting correction reduced estimated year-end carryover and led staff to limit one-time spending while sustaining key services.

Ferguson told council that a methodological correction to carryover accounting recalibrated the prior estimate of almost $6,000,000 to an "actual 2,720,000.00," a variance of about $3,200,000, and added that "this adjustment was not the result of overspending or revenue underperformance." He said staff responded with targeted expenditure controls, vacancy freezes and limited use of the fiscal-stabilization fund.

The proposed FY27 budget reflects "intentional restraint," Ferguson said: property-tax rates remain unchanged; municipal sales-tax revenue is projected at $10,700,000; and the city is not adding new positions this year. He said approximately 16 budgeted positions are being frozen and that the plan includes a 0% cost-of-living adjustment while keeping step increases for longevity.

Why it matters: Council and staff framed the budget as a step toward a more structurally balanced multi-year plan to rebuild reserves and reduce reliance on one-time funds, while preserving emergency-response standards and a basic level of capital investment.

Key numbers and priorities: Ferguson presented department and functional breakdowns showing the police department accounts for about 24% of the general fund, the fire department 20% and streets/public works about 8% (combined, the public-safety function represents roughly 48.2% by function). He highlighted capital allocations including $1,200,000 for street improvements, $375,000 funded for a ladder truck replacement and $350,000 for the River Terrace park project. Staff said $544,500 from capital-escrow and opiate-settlement funds is allocated to partner agencies, a reduction from last year.

Council questions focused on reserves and program reviews. When asked about the school-stabilization fund balance, Ferguson reported $3,469,913.42 as of that morning and said staff did not currently project a draw on the $2,000,000 stabilization allocation. Council members also asked whether the police training facility will continue to be evaluated; staff confirmed ongoing review of revenue versus expense for that facility.

Process and next steps: Staff said the budget package will come forward for a first reading on March 3 with a resolution adopting the capital plan, followed by a second reading later in March and final ordinances after tax-assessor updates. Ferguson said staff will return with any necessary budget revisions after year-end receipts are reconciled.

The Committee of the Whole did not take formal action on the budget at the workshop; the item will proceed through the council's regular readings and vote schedule.