Interlaken council approves tentative FY2027 budget; proposes small property tax rate increase to rebuild reserves

The Interlaken Town Council voted June 2 to amend and approve its tentative fiscal year 2027 budget and to publish a proposed property tax rate increase intended to restore reserves and cover added enforcement and contract costs.

Town staff told the council the proposed certified property tax rate would rise from 0.001979 to 0.002079, an increase the presentation estimated would generate roughly $9,700 in additional revenue (described in meeting materials as approximately a 5 percent change). Staff provided estimated household impact: about $24.75 annually for a primary residence assessed at $450,000; nonprimary residences or businesses would see larger impacts.

Council members discussed the need to rebuild reserves for road and water infrastructure and noted the town had taken on extra enforcement responsibilities under recently adopted ordinances. One councilor summarized the choice as "we don't like raising taxes, but we need to fund our reserves," and another emphasized water repairs as a fiscal priority.

After discussion the council moved to amend and approve the tentative budget—including the specified tax-rate notice—and approved the motion by voice vote. Staff said required county and state notices have been or will be issued and that a Truth-in-Taxation hearing is scheduled for August 4 at 6 p.m.

The tentative budget approval does not finalize the tax rate; it confirms the town will publish the proposed rate and hold the formal hearings required by state law before adopting a final rate.