Council adopts FY2026–27 preliminary budget framework of about $134.3M; staff to cut roughly $3M before final adoption

Hurricane City Council approved a resolution adopting the FY2026–27 preliminary budget framework after a staff presentation of key figures and capital priorities.

Finance staff member Paige presented an executive summary showing proposed citywide expenditures of $134,316,836 before any cuts, and a proposed general fund of about $25,800,000 (roughly a 17% increase over the prior year). Staff said much of the increase is driven by capital projects and timing of project expenditures rather than recurring operating increases. Major capital items discussed included street projects (e.g., 1400 West and Purgatory Road), continued water projects (Dixie Springs replacements), and a proposed pool project that staff estimated could require up to about $16 million in the coming fiscal year.

Paige and councilmembers noted enterprise fund changes such as planned substation and other electric projects: the electric fund shows an increase the presentation described largely as impact-fee-funded capital. Staff emphasized that impact fees and grant reimbursements are reported as expenditures when spent, which causes year-to-year variability in fund totals.

Council and staff acknowledged the general fund is currently out of balance under the preliminary numbers and that staff anticipates making roughly $3,000,000 in cuts or identifying offsets before presenting a final balanced budget. The council voted to approve resolution "20 26 21" adopting the preliminary FY2026–27 budget framework; the motion was made and seconded on the record and approved by the council.

Staff stressed the budget is preliminary: details, potential tax implications and final appropriation decisions will be determined later in the budget process and after further council direction.