Bluff council weighs property tax increase, budget cuts ahead of June 16 vote

The Bluff Town Council met June 9 to review public feedback on the FY2027 tentative budget and a proposed property tax increase and to consider whether to cut one-time items or use fund balance ahead of a June 16 vote. Staff reported updated revenues through April 2026 and outlined options to cover a projected shortfall.

Staff member Erin Nelson said revenue reports now reflect Tax Commission data through April 2026 and that the town has approximately $35,000 in received-but-not-yet-realized funds and an estimated $80,000 available to move into FY26/27. Mayor Josh Ewing said the council should consider building the Carryover Fund Balance as a reserve if tourism revenues continue to decline.

Councilmember Jennifer Davila, citing her business receipts, said tourism appears down this year: “my personal business saw 75% capacity in June 2025 while June 2026 is at 40% capacity,” and she recommended budgeting more conservatively for FY26/27. The council discussed earmarking rollover funds to the Carryover Fund Balance rather than to Capital Projects, which must be spent on capital items.

Council members listed community concerns and recommendations gathered during the budget public hearing and outreach. Comments included alternatives to funding a proposed emergency position, suggestions that the position could start as hourly rather than full-time, and a generational split in support for a tax increase (younger residents more favorable; older residents on fixed incomes opposed). Mayor Ewing warned that once taxes rise they rarely fall back but noted the choice is a policy decision for the council.

Faced with roughly a $50,000 discrepancy if the proposed tax increase is not approved, the council prioritized trimming one-time expenses. Options discussed included reducing Dark Sky funding from $15,000 to $5,000, cutting Community Promotion from $15,000 to $10,000, and removing Wayfinding ($10,000). One alternative scenario was cutting $30,000 and using $20,000 of fund balance to leave an estimated $65,000 rollover to FY28. No final decision or formal vote was taken at the work session.

A preliminary C Roads budget was presented totaling $252,000 to cover maintenance, improvements and equipment; that proposal includes an $85,000 matching grant from SJC. The council was reminded the FY26/27 budget must be approved on June 16 and directed staff to continue refining options for covering the potential shortfall.

The work session adjourned at 5:50 p.m. The June 16 meeting will include the final budget vote.