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Tyrone warned of growing budget gap; manager urges early action and lays out options
Summary
Town manager Brandon told the council Tyrone faces a structural budget gap that could grow from roughly $100K this year to nearly $860K by 2030 under current trends, and urged consideration of new revenue tools (millage adjustment, stormwater fee, occupational/business tax, sewer rates) ahead of proposed state tax changes that could cap property growth at 3% or reduce assessed homestead value.
Tyrone’s town manager, Brandon, delivered a five‑year revenue and expense briefing to the council, saying the town’s average audited general fund revenue (~$6.9 million) lags its average operating cost (~$7.0 million). He told the council that under present trends the town’s annual deficit could rise from about $100,000 this fiscal year to roughly $860,000 by FY2030.
Brandon warned council members that the town has relied on one‑time and variable sources in recent years — SPLAST projects, ARPA, seized funds and intermittent grant reimbursements — and that those sources are insufficient to cover ongoing operating costs. He identified the primary cost drivers as salaries and wages, benefits, operations (fuel, utilities, supplies) and equipment acquisition, which together account for roughly 80% of the operating budget.
He singled out two pieces of pending state legislation as a particular risk: versions of bills discussed in the House and Senate that would cap annual property‑tax revenue growth (commonly described as a 3% cap) or expand floating homestead exemptions. Brandon said the bills differ in details but could sharply reduce local property‑tax revenue, especially for a largely residential tax base like Tyrone’s.
“We’re not going to be able to sustain the town and keep the doors open,” Brandon said, urging candid discussion of options. He presented a menu of choices staff will study and return with more detail on: raising the millage rate to set a higher baseline, adopting new or higher fees (stormwater utility, occupational/business license adjustments), updating sewer rates and tap fees and pacing capital projects. He also recommended targeted cost reductions only where service impacts are acceptable.
Staff will prepare more detailed analyses, cost projections and implementation timelines. Brandon said early action would reduce the size of any single increase and give the council more options than waiting until deficits deepen.
What’s next: Council asked staff to explore revenue‑option studies — including a stormwater utility rate analysis, an occupational/business tax study and a sewer rate and master‑plan update — and bring firm numbers before budget hearings.
