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City administrator previews FY27 budget as health-insurance and infrastructure costs rise
Summary
City Administrator Nick Rice presented the FY27 budget framework, including a one-step wage increase, absorption of a 19% health-insurance increase (about $1 million), $925,000 for roads/sidewalks, and water/sewer capital funded largely by litigation proceeds; council will review details in budget work sessions.
City Administrator Nick Rice told the Salsbury City Council on April 27 that the proposed FY27 budget tries to balance employee compensation and essential services while navigating structural revenue constraints.
"Current revenue levels do not fully support the increases that we are proposing," Rice said, flagging a roughly 19% jump in health-insurance costs that the administration said will add about $1 million to the city's costs. The online budget, he said, includes a one-step increase for employees, fully funds career-ladder increases and merit requests, and funds new infrastructure investments.
Key highlights Rice listed: $925,000 in new funding for road paving and sidewalk projects, more than $1 million for water and sewer capital projects funded from POS litigation proceeds, an expected $1.7 million increase in real-property tax revenue, a proposed $10-per-quarter increase in trash service fees, and a 2.5% water/sewer rate increase tied to regulatory costs.
Rice said the administration has agreed to a wage proposal with the fire department and is still negotiating other units. He also explained that some promises were being temporarily covered by unassigned fund balances and cautioned that relying on savings is not sustainable long term.
Council members and public commenters asked for more detail; the administration scheduled department-level budget work sessions April 29-30, open to the public. The administration said it will provide more detailed exhibits and third-party analysis where available.
What happens next: Budget work sessions are scheduled for April 29 and 30; councilors will review department budgets and the administration said it will present additional analyses to support fiscal decisions.
