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Woodfin staff recommend revenue-neutral approach after revaluation as fund balance rebounds
Summary
Staff proposed starting with a revenue-neutral tax ordinance after a recent revaluation because FEMA reimbursements have replenished funds; Sherry Powers showed the town projecting a roughly $73,000 expansion-package gap if everything in the recommended expansion list were funded and presented fund-balance scenarios showing strong reserve levels.
Sherry Powers presented the town's revenue and fund-balance outlook to the council on May 26 and recommended a conservative, revenue-neutral tax stance in the initial budget ordinance while leaving options open for council priorities.
Sherry said the town received significant FEMA reimbursements this fiscal year and that those reimbursements, together with projected revenues, would restore fund balance. "We've gotten over $2,000,000 already, and we anticipate another million or so this year," she told the council, noting those receipts largely reverse last year's outlays related to debris removal and other FEMA-eligible work.
Sherry presented FY2027 numbers showing a total expenditure budget around $8.4 million and an expansion package that, if fully implemented as recommended, would create an estimated $73,886 shortfall (staff's current recommended package is largely revenue-neutral after adjustments). She said the town's projected unreserved fund balance would be about $7.7 million at the beginning of next fiscal year and that the town would remain in a strong reserve position even after funding many one-time and some recurring expansion items.
Council members pressed whether to add recurring police supervision positions now or wait until midyear when FEMA reimbursements and project expenditures settle. Sherry recommended waiting to add recurring positions until midyear to avoid locking in ongoing costs without confirming longer-term revenue trends, though she said funding the two lieutenants this year is possible if council accepts a slightly higher tax or uses fund balance.
Sherry also briefed council on the property revaluation timeframe and a possible House moratorium on revaluation; she said staff is preparing two versions of the tax ordinance so the council can adopt the revenue-neutral option now and amend it if the legislature changes revaluation rules.
Next steps: council requested more scenario modeling (minor tax adjustments vs. staying revenue-neutral) and staff said slides and budget materials would be posted to the town website ahead of the next meeting and the public hearing in June.
