Town previews balanced draft 2026–27 budget with proposed pay adjustments, no property tax increase
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Summary
Town staff presented a balanced FY 2026–27 draft budget that proposes a 4% COLA plus market pay adjustments (up to 10% for some roles), no proposed increase in the property tax rate, modest sanitation and water/sewer fee increases, and capital spending on vehicles and building projects; adoption is expected in May after further board review.
Town of Aberdeen staff presented the draft FY 2026–27 budget at the April 13 work session, describing a balanced general fund in the roughly $18.156 million range and a water and sewer fund near $6.023 million. Staff said the draft does not propose a property tax increase and that the tax rate would remain flat under the version presented to the board.
“Just as a general thing…we have a balanced general fund in the $18,156,000 range and a water and sewer fund at $6,023,000,” said the presenting staff member (S6). He told commissioners the draft includes a recommended pay approach intended to keep the town competitive: “we're trying to include at least a 4% COLA increase for every employee,” with additional market pay adjustments for positions shown by the study to be behind market.
Why it matters: the draft would raise recurring personnel costs (COLA plus selected market adjustments) while keeping the property tax rate steady. To cover operating and capital costs, staff proposed a $1-per-month increase on residential sanitation, a $1 increase on commercial sanitation, and a 3% increase in tiered water and sewer rates intended to cover county sewer-processing charges that affect the town's costs.
Staff outlined several capital and financing items in the packet, including a placeholder for loan proceeds and proposed financing: roughly $514,500 identified for a heavy rescue truck and a $450,000 financing placeholder tied to improvements at the Old Aberdeen Elementary building (HVAC, roof and stucco work were cited as examples). Staff described a planned loan-proceeds estimate and said timing and financing details will be refined before final adoption.
Town staff also highlighted available Powell Bill funds and capital paving plans. The presentation noted a Powell Bill fund balance was available to help pay for resurfacing and other town-road improvements; staff is preparing a bid packet to solicit contractor proposals for resurfacing work this summer.
The board did not adopt the budget at the work session; the draft is for review and public input. Staff said the board is scheduled to receive a recommended adoption package in May (traditionally around Memorial Day), with additional meetings before any final vote.
Quotes: “It's really this isn't just, hey. We can afford this. This is to keep us competitive,” the presenting staff member said of the pay proposal (S6). Mayor (S1) noted, “taxes are not going up,” repeating the staff characterization that the draft holds the tax rate flat.
Next steps: staff will refine line items and bring a formal proposed budget to the board for adoption in May. The board directed staff to continue preparing financing details and bid documents for planned capital projects.
