Elkins reviews FY2027 general fund budget with $6.45M in revenues and $7.14M in proposed spending

City Treasurer Tracy Judy told a council work session that the proposed FY2027 general fund budget projects $6,453,003.71 in revenues, a carryover of $686,183 and total expenditures of $7,139,005.54.

"We are projected the revenues for fiscal year 27 of $6,453,003.71," Judy said. She identified the city’s three primary revenue sources as business‑and‑occupation taxes, the county property tax and sales tax.

Judy warned of several pressure points in the draft budget. She estimated the fire department’s costs will exceed current fire‑fee revenue by roughly $300,000 this year; she said fire‑fee receipts are approximately $900,000 and noted the fee has not been adjusted since it was adopted in 2015. "Probably 300,000," Judy said when asked about the shortfall.

The treasurer walked the council through department line items and one‑time items: a custodial budget increase to $185,000 largely driven by a proposed side‑by‑side vehicle with a plow (estimated $25,000–$28,000); a $54,200 fixed HVAC payment for City Hall; a $252,000 capital outlay line for the City Hall project (part of a larger $4,100,000 project); and a $25,000 increase to storm‑sewer spending to create a visible, traceable storm‑sewer fund for repairs and inspections.

Judy also said municipal court revenues have fallen sharply and the city will not fund a 25‑hour‑a‑week court clerk position this year; the duties will be absorbed by a general‑fund employee. Other fixed costs the treasurer listed included $75,000 for the city attorney and $26,000 for the city auditor.

Street‑department spending rose to cover planned truck replacements and a roof replacement for the street garage. Council members discussed funding about 75–80% of a garage roof (estimated around $175,000) through the street department while sharing central‑garage costs to mitigate the burden on a single line item.

Judy emphasized inflationary pressure: "Over a five‑year period, it's gone up 22.5 percent," she said, noting that higher wages raise retirement, FICA and workers’ compensation costs alongside material price increases.

Why it matters: the proposed budget shows expenditures larger than projected revenues, and staff identified service areas (fire, municipal court, vehicle fleets, and building maintenance) that will require either increased revenue, transfers from stabilization accounts or reductions in other services. The treasurer and finance committee will continue refining the proposal before the full council reviews it.

The treasurer recommended the council review outside contributions and other allocations as part of final balancing. The full council is scheduled to consider the budget for possible approval at its regular meeting next Thursday; no formal action was taken at the work session.