Bluff council splits on proposed property-tax increase as budget gap looms

Bluff — The Town of Bluff's council heard an update showing revenues may exceed conservative estimates but left the question of a proposed property-tax increase unresolved after a split straw poll Wednesday.

Town Manager Aaron Nelson told the council that April distributions and other receipts suggest the town could realize roughly $80,000–$90,000 more than budgeted this fiscal year, with about $46,000 of that tied to higher resort/transient-room and sales tax receipts. Nelson warned those figures are "unrealized" until final distributions arrive later in the summer.

Mayor (unnamed) framed the policy decision as a choice between using one-time carryover funds or asking residents for a sustained revenue increase. "We really need capacity to work on this stuff," the mayor said, arguing that evolving state requirements for emergency planning and wildland-urban interface work mean volunteers alone may not meet the town's responsibilities.

The central question was whether to fund a proposed emergency-services capacity position at an estimated loaded cost of roughly $40,000 and finance it through a modest property-tax increase. Council members reported mixed public feedback: some business owners and younger residents supported the increase, while many long-term residents and several businesses said they could not afford additional taxes now.

Council member Jen (identified in the meeting) said she had heard a generational split: "A lot of our older people who are living in town are kind of living on fixed income," she said, urging caution before approving a tax hike. Another council member urged starting with an hourly or part-time role to reduce risk and refine the job before committing to a permanent salary.

Mayor conducted a nonbinding straw poll; he reported the result as 3 in favor and 2 opposed. He advised that, absent sufficient support to pursue a property-tax increase, staff should prepare a revised budget with about $50,000 less revenue for the council to vote on next week.

To close the gap without new taxes, council members discussed cutting discretionary items and using a portion of fund balance as a one-time measure. The mayor proposed cutting approximately $30,000 in promotional and wayfinding items and using $20,000 from fund balance as a compromise, leaving an estimated FY2028 starting fund balance in the range council members considered acceptable.

Aaron Nelson cautioned the council that some capital projects are restricted funds and not appropriate for ongoing expenses; he reiterated that extra revenues this year should be treated as one-time money unless the council decides otherwise.

Next steps: Aaron Nelson will prepare an amended budget reflecting the council's direction and provide job-description details for the proposed emergency position; the council expects to vote on the FY2027 budget at next Tuesday's meeting.