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Smithfield council begins FY2027 budget review, proposes 5.5% wage package and $23M initial plan
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Summary
City leaders opened a multi-month FY2027 budget process that includes a proposed 5.50% wage increase (3.5% COLA, 2% merit), a preliminary $23 million-plus spending plan, and a slate of capital projects including a 3-million-gallon water tank and multiple water/sewer upgrades.
The Smithfield City Council on March 25 began formal review of the Fiscal Year 2027 budget, hearing department-by-department presentations and identifying major equipment and facility priorities ahead of a planned adoption vote in June.
"The budget will be worked on over the next several months, with a vote to adopt at the June city council meeting," City Manager Justin Lewis told the council as heads from recreation, public works, library, police, fire and the golf course presented needs and cost estimates.
The initial budget proposal exceeds $23 million and includes a proposed 5.50% total wage increase, Lewis said: "3.50% will be provided to each employee as a cost-of-living wage adjustment (COLA). Each department head will allocate the remaining 2.00% as a merit increase where applicable." The proposal does not add new full-time positions but anticipates adjustments to benefits and line items as premiums are finalized.
Major capital items flagged across departments include a 3-million-gallon water tank under construction (expected completion November 2026), phased waterline replacement work in Smithfield Canyon (about 4.7 miles of 12-inch line planned in later phases), sewer line replacements, and multiple equipment purchases to replace aging fleet and maintenance machinery. Lewis said some building roofs and historic-structure repairs also require near-term attention and that the city will balance equipment and facility needs during budget refinement.
Managers repeatedly emphasized that some projects depend on external funding. Public works and parks staff cited dedicated funding sources—Class C Road Funds, RTIF, and Rural Transportation Investment Fund—for road and drainage work, while recreation and the golf course noted potential RAPZ (recreation, arts, parks and zoological) grant applications.
Councilmembers asked managers to prioritize building repairs versus equipment purchases and to seek grant opportunities where feasible. Lewis said no utility rate increases are currently proposed and that impact fee revenues will be added as received.
The council approved routine meeting minutes and later adopted a separate resolution updating the city’s prevailing fee schedule (see separate article). The budget review and departmental hearings will continue in advance of the June adoption vote.