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Council holds budget work session; staff proposes conservative revenue outlook and flags sewer chemical costs
Summary
Springdale staff presented a conservative FY2026–27 budget that holds revenues flat, highlighted the need to budget for depreciation in enterprise funds, flagged ~ $160,000 chemical costs for a sewer filtration issue, and sought council guidance on capital priorities, events and water policy.
Springdale’s town manager and department heads led an extended FY2026–27 tentative budget work session on April 22, urging a conservative approach to revenue projections and asking council members for direction on capital priorities and rate policy.
Staff recommended holding general-fund and enterprise revenues essentially flat for the coming fiscal year rather than projecting a 5% increase, citing uncertainty in visitation-driven taxes (sales, resort and transient-room taxes). The manager said the town’s longstanding practice of using beginning fund balances to balance budgets must be moderated and that the council should prioritize deposits to the fund balance rather than continued drawdowns.
On utilities, staff noted the five-step automatic rate increases for water, sewer and irrigation complete their schedule Jan. 1, 2027, and warned that the state may require budgeting for depreciation — a change that would likely require substantial rate increases or expenditure reductions in a future year. "Budgeting for depreciation means that we will need to dramatically increase rates or dramatically reduce expenditures or do a combination of both," the manager said.
A notable operational issue surfaced in the sewer fund discussion: town staff and public-works personnel reported the new sewer filtration system has not achieved targeted total suspended solids (TSS) discharge numbers and the plant currently requires chemical additions. Public works staff estimated chemical costs could be about $160,000 in the near term and recommended bulk shipments and larger storage to reduce future unit costs. Councilmembers discussed options for rate adjustments and agreed to monitor the system before proposing any immediate rate change.
The session also reviewed capital-priority items: design and grant-funded master planning for a proposed medical clinic on Lion Boulevard (a $334,000 GoEO grant offsets design expenses), water-line interties to improve system resiliency, road and sidewalk priorities (including Big Springs Road design and possible reconstruction), and an array of community events and programs. Staff recommended maintaining the Chalk & Earthfest at the ball field with a roughly $22,000 net cost after sponsorships, and members affirmed that signature events such as the Butch Cassidy race remain a community priority while staff looks for efficiency and reduced carbon impact.
Council members asked staff to return with follow-up material on depreciation implications for utility funds, potential sewer-rate scenarios if chemical costs persist, design alternatives and updated cost estimates for the medical clinic, and a report back on capital-priority sequencing so the council can adopt a tentative budget at the May meeting and a final budget in June.
