Midway Council previews $2.395M budget, OKs 3% COLA and $1M parks allocation

Midway Town Council on March 19 reviewed a proposed $2,395,000 fiscal-year budget that includes a $1,000,000 appropriation for Parks and Recreation and a conservative $100,000 estimate of additional ad valorem revenue tied to a recent property revaluation.

Town Manager Brock Hall told council members the town’s tax base is projected to rise from about $397 million to $657 million after revaluation, which staff estimates could increase ad valorem revenue by roughly $125,000–$130,000; the proposed budget conservatively counts $100,000 to reflect a 96% collection assumption. “If you do not stay on top of the cost-of-living adjustment incrementally year to year, it would be easy to suffer compression issues,” Hall said during the meeting.

The council reached consensus to include a 3% cost-of-living adjustment for staff in the proposed budget; Hall was asked to prepare precise dollar figures for the April budget workshop. Councilors also agreed to leave elected-board compensation unchanged.

On appropriations, staff presented line-item totals that show Administration at about $595,000, Public Works about $551,000, Governing Board about $63,000, and Cultural and Economic Development about $67,000. Councilors were told $24,000 in S.T.E.A.M. grants to local schools went unspent in the current year, and the proposed budget keeps $20,000 for the town’s 20th anniversary celebration.

Council reviewed the town’s fee schedule — including pavilion rentals that range from $100 to $500 depending on size — after staff reported some residents had called the pavilion pricing high. Council members said rentals were healthy enough to retain the current fees.

On employee benefits, Hall described options for retirement and health benefits. He recommended staff return with cost estimates for employer contributions to a 401(k) (a typical range of 1%–2% was discussed), the option to offer a 457 plan as a non-funded benefit, and HSA contributions of roughly $500–$1,000 for employees who choose higher-deductible plans. “These were just suggestions for Council to consider, not requirements,” Hall said.

Council also approved several administrative adjustments and follow-ups. They instructed staff to increase the Town Hall maintenance line from $10,000 to $25,000, raise the Christmas-decorations allocation from $3,000 to $5,000, and obtain a quote (about $15,000 estimated) to refurbish playground rubber surfacing.

Investment earnings and reserves drew attention: council members asked for a refresher showing where town funds are held, account balances and maturities after noticing differing earnings figures in the draft budget. Mayor John Byrum said he favored conservative, guaranteed investments and expressed concern about exposing taxpayer reserves to stock-market volatility; Hall noted firms that manage local-government portfolios specialize in lower-risk instruments designed for public funds.

The meeting produced several action items for staff, and minutes record that the agenda was adopted unanimously at the start of the session. The work session adjourned at 6:50 p.m.

Next steps: Hall will return to the April budget workshop with COLA costings, proposals for retirement/HSA options, an investment-portfolio overview and corrections to a spreadsheet error noted in the draft budget.