Town manager presents $31.9M FY27 budget recommendation, holds tax rate at 17¢

Town Manager Adam (S7) presented the manager's recommended FY27 operating budget to the Indian Trail Town Council, recommending total operating funds of $31,900,000 and stating the overall budget is a 1.76% decrease from FY26 while the general fund is up roughly 3.5%.

Adam said the recommendation holds the tax rate at $0.17 and maintains a 5.5¢ debt service cap reserve. He told council ad valorem taxes make up about 57% of the town's revenues and that natural growth in assessed value accounted for roughly 4.9% ad valorem growth; he emphasized this does not automatically raise an individual taxpayer's bill because assessed values lag changes.

The manager outlined key line items: general fund at $27.5 million, Powell Bill funds at about $2 million and stormwater at about $2.4 million. He recommended one new full-time communications specialist (bringing total authorized staff to 58), two reclassifications in planning, two interns (one paid college intern and one unpaid high-school internship through Union County Public Schools) and continuing a merit pool (0–3%). For employee pay, he recommended a 2.5% cost-of-living adjustment with a $1,500 minimum and noted the town negotiated health insurance down so the earlier 24% estimate fell to about a 16% increase.

Adam also described capital project planning: 24 projects are on the five‑year CIP, 18 of which are active in design, right-of-way or construction. Ten projects already have capital project ordinances with funding attached; other projects would require additional appropriation when council decides to move forward. He said the town will present a financial model this summer to show funding scenarios and timing for the CIP, including sensitivity to tax-rate changes and ad valorem growth.

Other specifics in the manager's presentation: the recommended operating budget keeps inflation below the current year-over-year inflation figure (Adam said the recent inflation reading was 3.8%), anticipates a modest reduction in investment income as idle capital is spent, and modestly reduces equipment purchases after prior years of catch-up. The only fee change proposed at this time is a 5¢ increase to the EV-charging per‑session rate to align the program with a break‑even target.

The council asked questions about whether the budget contains funds for the Old Monroe project and a potential IT Road waterline; Adam said the Monroe commitment was delayed and is planned in next year’s budget if the project moves forward, and the waterline is not in the budget absent an executed agreement with a developer. Adam said the recommended budget and supporting documents will be posted online and that the next steps are a public hearing at a future council meeting followed by final adoption.