Rossmore board deadlocks on FY26‑27 budget; counsel warns of operational risks

The Rossmore Community Services District board failed to adopt a final fiscal year 2026‑27 budget at its July 14 meeting after a 2‑2 roll‑call vote.

Director Tony Searls moved to approve the final budget and resolution; the board recorded votes as Director Maynard: No; Director Searls: Aye; President Shade: Aye; Director DeMarco: No, producing a 2‑2 split that prevented passage. The resolution in the motion was listed as the district—28099s final budget resolution for FY26‑27.

Why it matters: District legal counsel Tarquin Preziosi told the board that state law requires community services districts to adopt a final budget by Sept. 1 and that operating without an enacted appropriation would severely constrain the district—28099s ability to make payroll, pay vendors or authorize projects. "Without an enacted budget or formal appropriation resolution, operations are effectively frozen," Preziosi said, adding that the county auditor filing deadlines and federal single‑audit rules also create practical and legal pressure to adopt a budget.

Board debate focused on the trajectory of staff salary and benefits, categorization changes in the budget and how conservatively to model revenue and merit/cost‑of‑living adjustments. Financial consultant Josh Byram presented the proposed FY26‑27 document and said a spreadsheet correction lowered the projected change in fund balance from roughly $128,000 to about $92,000. Line‑item discussion centered on an 8% increase shown in one year for salaries (due to step increases and merit assumptions), a 3% COLA assumption, and an insurance cost increase that staff described as 22% for general and property‑liability coverage.

Several directors urged that sections of the budget be reassessed by committee: concerns included how salary steps and merit increases were budgeted and whether deferred‑compensation matches should be reduced or delayed. Others argued the district must pay competitive wages to retain staff.

Next steps: Counsel advised the board that if it cannot reach an agreement at a future meeting the district still has until Sept. 1 to adopt a final budget and that the board may convene a special meeting or return the budget to committee for revisions. The board discussed but did not adopt an emergency procedural motion to appoint a replacement to the budget committee at the same meeting.

Action recorded: Motion to approve final budget and accompanying resolution (mover: Director Tony Searls; second: President Shade per meeting record); roll‑call vote Maynard: No, Searls: Aye, Shade: Aye, DeMarco: No; motion did not carry.