Tega Cay council reviews FY 2627 budget, proposes payoff of capital lease and new capital reserve

Tega Cay held a special city council budget workshop to review proposed fiscal year 2627 revenues, departmental requests and capital priorities. Staff presented a total general fund revenue forecast of $19,429,432 and recommended no additional full‑time headcount for the coming year. The presentation also flagged several capital requests staff recommended deferring for the year.

Finance director Bob told council he intends to pay off an existing capital lease to remove a recurring payment from the general fund and restructure equipment financing. Bob said the payoff would eliminate roughly $140,000 in annual lease payments and allow the city to set aside a $300,000 capital projects reserve while leaving contingency funds for unplanned needs. To fund planned replacements, Bob proposed a new capital lease of $493,100 covering items listed in staff materials.

Why it matters: paying off the older lease reduces recurring debt service and frees flexibility for council to create a capital projects fund rather than relying solely on year‑to‑year budgeted lease payments. Staff emphasized the plan preserves a healthy reserve while funding critical fleet and equipment rotation needs.

Council discussion focused on sequencing and interest‑rate impacts; staff said they would finalize the numbers and upload updated spreadsheets before the next meeting. The revised general‑fund plan also reflects council direction to set aside baseline funding for wildlife management (see separate coverage).

The meeting concluded with council thanking department heads for detailed departmental spreadsheets and adjourning the workshop.