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Committee hears FY26 shortfall tied to Station Hill purchase, readies FY27 kickoff as SAFER grant ends
Summary
Staff told the Budget and Finance Committee that a planned $6,000,000 Station Hill purchase will largely drive a FY26 deficit (to be covered from fund balance), impact fees are being budgeted at zero amid a sewer moratorium, and the SAFER firefighter grant ending next year will leave a roughly $750,000–$1,000,000 annual gap to plan for.
The Budget and Finance Committee received an update on near-term budgetary pressures and the start of FY27 budget preparations.
Miss Holden said the preliminary FY26 projection shows a deficit largely driven by a planned $6,000,000 purchase of Station Hill; staff plans to fund most of the purchase from fund balance. “The purchase of Station Hill was at $6,000,000. We're budgeting for a deficit less than $6,000,000,” she told the committee, adding that the final number will depend on available transfers and year-end adjustments.
Holden also said staff is monitoring the impact-fee receipts amid a sewer moratorium and intends to budget impact fees at zero for the next fiscal year until clearer trends emerge. Committee members raised concerns about tourism-related revenue that typically lags in the winter and often shows an April uptick tied to local events.
The committee also discussed the SAFER grant that currently helps fund firefighter wages; Miss Holden said the grant ends about three-quarters of the way through the next fiscal year, leaving an annualized funding gap staff estimates between $750,000 and $1,000,000 that will need planning going into FY28. The FY27 budget kickoff will include personnel, vehicle and equipment planning, and a reassessment on the Murray County side is expected to affect revenues this year.
Alderman Fuqua pressed for clearer, monthly updates on water and sewer capital costs and raised concerns about the often-cited, aggregate $200,000,000 estimate for system expansion. “I've always heard a number of $200,000,000 that was gonna go to kind of the water and sewer expansion,” he said, asking staff to provide a breakdown of what composes that total. Miss Holden said staff is reconciling fund 1875, working with department leads to gather project costs, and will provide more detailed figures in coming weeks.
Staff plans follow-up work to provide a funding plan and reconcile existing capital allocations before the board considers major capital commitments.
