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Cayce council passes FY2026–27 budget on first reading amid debate over millage and contingency reserve
Summary
On first reading the council approved a $20.14 million general fund and $55.1 million utilities fund budget, including a 4% COLA, a proposed 4.97-mill increase and a 7% water/sewer rate increase; councilors debated adding roughly two extra mills as a contingency and the measure passed 4–1 with the mayor dissenting.
The Cayce City Council on Tuesday approved the first reading of Ordinance 2 2026-04, adopting proposed budgets that would fund city operations and utilities for fiscal year 2026–27.
Administration presented a general fund budget of $20,139,640 and a utilities fund budget of $55,104,592. Key elements in the presentation included a proposed 4.97-mill increase (about $350,000 in additional revenue), a 4% cost-of-living adjustment that staff estimated at roughly $355,000, and a proposed 7% increase in water and sewer rates for customers. Administration also outlined a proposed $7.7 million bond to support sewer capital projects and a transfer of $1.5 million from utility fund balance for capital improvements.
Council members and staff discussed the local impact of the millage. Finance staff member Melissa Harold told the council that for a home assessed at $200,000 the millage increase would translate to about $40 a year in additional tax — roughly $3.33 per month. "For a 200,000... that will be an additional $40," Harold said.
Members discussed fiscal prudence in light of supply-chain and global economic uncertainty. Council and staff debated setting aside additional millage as a contingency reserve; staff and at least one council member raised the idea of earmarking roughly two mills to create a buffer against unexpected costs. Council asked staff for more information on outstanding grants, potential revenue effects from an Otari apartment takeover and operating-cost items such as take-home vehicles and the estimated cost to add a fire marshal position (administration estimated $250,000–$300,000 if fully loaded).
After discussion, the council voted on first reading. The roll call showed Council members All, Thomas, Rose and Mayor Pro Tem Carter voting to approve the budgets while the mayor cast the lone 'No' vote; the motion carried 4–1 and the ordinance will return for a second reading.
Council directed staff to provide additional details ahead of the second reading, including documentation on grants, revenue assumptions and any proposed earmarks for contingency uses.
