Woodfin staff recommend revenue-neutral budget as council reviews police expansion and reserves

On May 12, town staff presented a recommended budget that would hold the town's property tax at a revenue-neutral level while funding personnel and infrastructure needs, Sher Powers said.

Sher Powers, a staff member who led the budget presentation, told the council the administration had increased the employee cost-of-living adjustment from 2.8% to 3% and added one of two requested lieutenant positions in the police department. "We went from a little over $70,000 deficit to a $36,000 deficit," Powers said, summarizing edits made since the last work session.

The recommended expansion budget adds about $224,000 in police costs tied to the lieutenant, an additional vehicle and associated upfitting and equipment. Powers said the police increases also include funds for equipment replacement, $5,000 for community outreach and an estimated $15,000 for a weapons optics program. "It's quite expensive to put a police officer on the road," Powers said when describing vehicle and radio upfitting costs.

Powers outlined capital and maintenance items: engineering for guardrails (~$76,000), landslide repairs (~$60,000), equipment for the public works fleet (sander/spreader, ditch mower, automatic gate) and structural repairs at the Taylor Street building and community center. She said FEMA and an OSB grant application were denied for some landslide work, making the town responsible for those engineering costs.

On revenue, Powers presented the town's LGC-based calculation for a revenue-neutral tax rate and said Woodfin's five-year growth averages produced a 22.6-cent revenue-neutral levy under the town's spreadsheet assumptions. She said the town has a plan in the draft ordinance to revert to last year's 33-cent rate if Senate Bill 889 (state-level legislation discussed at the meeting) passes before July 1: "Should that legislation pass and become law prior to July 1st, we would go with the old tax rate," Powers said. She warned the timing of state action is uncertain and that implementation could take a year or more if follow-up steps are required.

Powers gave a high-level fiscal picture: a recommended total budget of $8,642,217, a projected use of about $36,000 from fund balance, and a projected unrestricted fund balance in the range of several million dollars after reserves. She recommended designating an additional $400,000 to a town-hall reserve, bringing that reserve to an estimated $1.3 million if approved.

Council members asked clarifying questions about road responsibility (Powers confirmed the town is responsible only for town-maintained roads, not NC DOT roads adjacent to landslides), growth estimates and the timing of required public hearings. Staff said the draft budget ordinance and pay-and-classification plan will be included in the council packet released Thursday; a public hearing on the budget is scheduled for the June 16 regular meeting and the council will vote on the budget and the tax levy after that hearing.

There was no formal vote on the budget at the special called meeting. The only formal motion taken was to adjourn the session, which passed by voice vote. The council adjourned at 1:43 p.m.