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Indian Trail workshop outlines FY27 budget, flags 2.5% COLA and large health-cost increase
Summary
At a fourth budget workshop, town staff reviewed departmental budgets and proposed a 2.5% cost-of-living adjustment, a new communications coordinator and stepped-up personnel spending; health insurance renewal and a proposed 5.5-cent debt service cap reserve were identified as near-term pressures.
Indian Trail officials reviewed the town’s FY27 spending priorities at the fourth budget workshop, focusing on personnel costs, revenue assumptions and planned capital work.
Town Manager Adam led the meeting and presented a broad recap of prior sessions, saying staff would circulate printed packets "coming off the printer" and that the evening would concentrate on personnel numbers and outstanding capital questions. Finance staff reported several FY26 accomplishments — an unqualified audit opinion, a GFOA budget award and a completed banking transition — and said collections remain strong (current collections about 99.47%).
Alicia Gaddy, assistant finance director, recommended maintaining the town’s debt service cap reserve at 5.5 cents of the tax rate, saying the policy preserves funding for future capital projects and noting a slight near-term rise in debt service tied to older principal schedules. Gaddy also outlined revenue assumptions used in the manager’s request: ad valorem values up roughly 4% per county estimates, sales-tax growth budgeted conservatively at 2% and a planned reduction in video-programming receipts because of the shift to streaming.
Personnel was the central topic. Manager Adam and staff proposed a 2.5% cost-of-living adjustment for FY27 and preserved the existing merit pool (0–3%) and a town 401(k) contribution of 5%. Adam said the proposal includes a new communications coordinator position, a reclassification in planning and the planned filling of an assistant town manager role; the FY27 headcount request would increase town staff by one full-time employee (from 57 to 58).
Staff warned of near-term cost pressure from benefits: the town received a preliminary health-insurance renewal showing a roughly 24.8% increase and is negotiating with carriers to mitigate the impact before the manager’s recommended budget is presented. The town also noted a state-mandated increase in retirement contributions that will raise employer costs.
Next steps: the manager’s recommended FY27 budget will be presented May 12, followed by a public hearing (May 26) and planned adoption on June 10. Council recessed the workshop to continue personnel discussion after the council meeting.
