Mayes manager presents proposed FY2027 budget showing 17.1% rise in assessed valuation and reduced mill levy

City staff presented the proposed fiscal year 2027 budget at Thursday's council meeting, highlighting a notable increase in assessed valuation and a proposed reduction in the mill levy.

City manager (presenting) said assessed valuation estimates rose from about $119.5 million in 2026 to roughly $139.9 million for 2027, a change the manager described as approximately 17.1%. The proposed mill levy would decrease from 42.858 mills to 40.771 mills. "This growth reflects residential and commercial investment, new construction, and two industrial properties coming off IRBs," the presenter said.

Staff detailed planned transfers to capital projects (estimated highlights around $865,000) and an equipment replacement transfer of about $1,090,000 to sustain vehicle and technology replacement schedules. The manager also outlined expected sales-tax receipts, combining roughly $1.584 million for the 2026–27 period and said that voter-approved local sales tax will continue to support transportation projects and property tax relief.

The presentation noted several other factors shaping the budget: rising fuel and insurance costs, planned water and wastewater projects, and an ongoing rate study that led to recent utility rate increases. Staff said no new full-time positions are funded in the proposed budget and that the budget maintains a continued focus on reserves and planned capital investments.

Council moved to receive and file the proposed budget; the motion passed. Staff said a public hearing on the budget will be set for July 20, and a final budget hearing and ratification are scheduled for August 17.

What to watch: the council will hold a public hearing on July 20 and consider final adoption in August; staff signaled continued monitoring of inflationary pressures, infrastructure debt and potential legislative actions that could affect property tax policy.