Nolensville commissioners set budget direction: $300,000 contingency for Nolensville Road SPP, two‑year plan to shift fire‑station debt

Town of Nolensville commissioners met in a budget workshop to refine the FY2027 draft and set fiscal priorities, directing staff to reserve roughly $300,000 of contingency toward the Nolensville Road SPP commitment, to phase the fire‑station debt into the general fund over two years, and to pilot a merit‑pay pool for town employees.

Staff opened the meeting by asking the board to start from a "base budget" and reported a preliminary projection of about $1.5 million in revenue over expenses available for allocation. "If we only operated as if we've operated this year...we have roughly about, a little over 1,500,000 of revenue projection over expenses," the staff presenter stated while walking through the draft spreadsheet and options for new positions, market adjustments and capital needs.

A major new item discussed was the SPP program approval and the town's potential long‑term commitment. Staff said the town faces an immediate payment of about $500,000 this first year and a long‑term exposure in the neighborhood of $10.5 million to $11 million. Commissioners weighed funding approaches — including using contingency funds, setting aside roughly $1.1 million annually, borrowing, or declining the program — and expressed concern about uncertainty in transportation impact fees that could affect the town’s ability to absorb the long‑term obligation.

Several commissioners favored a smaller, initial contribution this year rather than committing the full $500,000. After discussion, staff reported they heard a range of preferences and that the majority voice supported allocating about $300,000 of contingency toward the SPP downpayment this fiscal year while staff refines the recommended numbers.

Commissioners also discussed moving the existing fire‑station debt service into the general fund. Staff described the current model and the remaining balance tied to prior financing; commissioners debated timelines and tradeoffs for taxpayers and other capital priorities. The group settled on a near‑term plan to phase the debt into the general fund over two years, noting that doing so will reduce funds available for other operations or hires unless additional revenues materialize.

On personnel costs, the draft budget includes a 3% cost‑of‑living adjustment and a proposed merit‑pay program. Commissioners questioned the size and mechanics of a merit pool and asked staff to present a fixed first‑year pool rather than an open maximum. After discussion, commissioners generally supported modeling a pilot pool near $125,000 for the first year with transparent performance metrics and a plan for annual review.

Other capital items reviewed included a $75,000 operational impact for a library parking connection, police station design and a Clovercroft Intersection design (~$300,000). Staff cautioned that construction timing for a proposed police headquarters depends on sewer‑capacity decisions by regional utilities; commissioners directed staff to pursue updates and possible coordination with Metro/County partners.

The board asked staff to update the budget spreadsheet with the directions discussed — the tentative $300,000 contingency for SPP, a two‑year debt‑shift option for the fire station, and a defined merit pool (~$125,000) — and to circulate the revised materials in advance of the May work session and public hearings. No formal vote on the budget items was recorded in the workshop; the meeting concluded after a motion to adjourn was approved.

The budget process will continue: staff will return with revised numbers, timing for public notice and next steps for first and second readings ahead of votes later in the budget cycle.