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Elkton presents balanced FY2027 budget with 3% COLA and no proposed tax or utility rate increases
Summary
Director of Finance D. Tyler Home presented an introductory FY2027 budget described as balanced with no planned tax or utility rate increases, a proposed 3% cost-of-living adjustment, a Central Reserve funded largely by potential real estate sale proceeds, and specific allocations including a $500,000 contribution to Singerly Fire Company.
Director of Finance D. Tyler Home presented the introductory FY2027 budget to the Mayor and Commissioners on April 1, describing the draft as balanced and not proposing increases to taxes or utility rates. He said the General Fund's largest revenue source is real property tax and projected a 6.2% increase in that revenue due to growth in the tax base. Home said the town is considering sale of surplus real estate and proposed creating a Central Reserve funded largely by those proceeds to cover unexpected expenses and to increase the unassigned fund balance.
Key budget items summarized in the meeting record include a recommended 3% cost-of-living adjustment for employees; health insurance plan changes under review with Cigna proposing a 10.88% premium increase; an HR recommendation that bundling dental with health insurance may reduce costs by about 1%; an anticipated 10% increase in LGIT premiums; and higher managed IT line items pending hardware needs. Home recommended adding one Finance Department employee to strengthen budget monitoring and cash management. He also reported an outsourcing estimate of $18,000 annually to handle utility bill fulfillment and reduce in-house folding and mailing labor.
Specific allocations listed in the draft include a $500,000 charter contribution to Singerly Fire Company (plus AMOS grant pass-through and supplemental funding), a $25,000 increase for the Elkton Alliance, scholarship funding increased from $1,000 to $2,000, $50,000 for an Elk Landing 250th anniversary appropriation, and $5,000 for the Elkton Colored School. Contributions to Fair Hill and Elk/Northeast River were removed from the draft and may be reconsidered in three to four years. Home also noted a potential 2029 liability linked to Southfields bonds if the SportsPlex cannot meet debt service obligations; he described that as a contingency the town is monitoring.
Commissioners thanked staff for the work on the draft budget; Commissioner Broomell noted removal of a storm-water pond line item and Director of Public Works J. Daniel Handley confirmed deferring that item to a later discussion. During public comment, Pat Opal asked whether the $50,000 donation to the Elk Landing Foundation was strictly for the 250th anniversary and Mayor Alt said Director of Planning Jeanne Minner might have more details but his understanding was that the donation supports the 250th celebration. Alicia Calhoun of the Elkton Alliance thanked the town for the added funding and urged attention to archway painting, tree-bed maintenance and rain-garden care around the Farmer's Market; she said the Alliance applied for a grant to aid improvements.
The April 1 discussion was an introductory review; the draft budget was not adopted at this meeting.
