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Colonial Beach council uses ARPA funds to balance FY25 budget, approve 2.5% COLA
Summary
After debate, the Colonial Beach Town Council voted unanimously to balance the FY25 budget as proposed by staff and provide a 2.5% cost‑of‑living adjustment for employees by using one‑time ARPA funds to cover a $117,458.48 general‑fund shortfall and related water/sewer amounts.
The Colonial Beach Town Council voted unanimously to adopt an amended FY25 budget amendment that balances the town’s operating plan and provides a 2.5% cost‑of‑living adjustment for staff by supplementing one‑time ARPA funds to cover an identified shortfall.
Town CFO Lisa Oakes told the council staff had identified a general‑fund deficit of $117,458.48 and additional shortfalls in the sewer and water funds; staff later said the combined amount needing one‑time coverage for the COLA across general, water and sewer funds would be roughly $136,532.11. Assistant Town Manager Kyler Brower outlined $38,366.04 in proposed cuts before staff presented options for funding the remainder.
Council members debated options including a 2% increase in the transient‑occupancy (lodging) tax and a 1¢ increase in the real‑estate tax, which staff estimated together would yield roughly $107,216 annually but would not fully close the total gap. Council ultimately accepted a motion to balance the budget as presented and to use ARPA one‑time funds to cover the remaining deficit while directing staff and council to pursue policy changes to avoid recurring reliance on one‑time money.
“I think ARPA funds should be for capital items and not to provide annual revenue,” the Chair said during debate, urging colleagues to pair any one‑time support with policy work to address recurring costs. Council members who supported the motion cited the need to provide employee pay adjustments now while agreeing to pursue revenue and policy fixes in the coming year.
The motion — moved from the floor and seconded — passed on a roll call vote with all council members voting in favor. The council then recessed into a closed session for legal consultation and adjourned for the night at 9:35 p.m.
What happens next: council directed staff to return with follow‑up policy options and revenue strategies as part of FY27 planning; the town manager and finance staff will also document the ARPA appropriation and the accounting steps needed to cover both general and enterprise fund COLA obligations.
