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West Point council hears FY2027 budget with $418,000 gap; staff cites need to refine revenue estimates
Summary
Assistant Town Manager Steve Hudgins told the West Point Town Council the town faces an estimated $418,000 gap in the FY2027 proposed budget (excluding water and solid waste) and listed possible balancing steps including internal transfers, a review of machine-and-tool tax estimates, and a projected $550,000 airport-property sale tied to a grant.
Assistant Town Manager Steve Hudgins presented the town's initial FY2027 budget request to the West Point Town Council on Jan. 27, saying staff currently calculates a $418,000 shortfall between submitted expense requests and projected revenues, not including enterprise funds for water and solid waste.
Hudgins identified a $110,913 gap for water and a $12,428 gap for solid waste. He said last year's SRO grant that funded a school resource officer is not available for FY2027 and that department requests are still being reviewed and compiled into the draft budget.
Hudgins walked the council through the revenue assumptions, noting machine-and-tool tax projections are lower this year after an amended value assessment was filed by a major taxpayer and that staff is taking a conservative approach while it researches the estimate further. He said staff recommends using internal transfers and one-time fund balances where appropriate and that the audit presentation at the end of February will clarify available fund balances for balancing one-time expenses.
On the expense side, Hudgins described organizational changes that reduce costs in the Town Manager section following a reorganization and the pending retirement of John B. Edwards Jr. He said Human Resources expenses are higher in part due to shifting a position into HR and to a request to purchase NeoGov time-and-attendance software and related HR services to streamline onboarding and personnel management. Hudgins said staff also included a placeholder for a potential compensation study and an updated firewall and computer services in nondepartmental expenses.
Hudgins told the council staff included $550,000 in revenue tied to a planned sale of airport property; he said the number is recorded with matching grant-eligible expenses but that the development has not yet occurred. He recommended councilmembers contact him or the Town Manager with questions and noted additional council-staff work sessions will be scheduled to close the budget gap.
The presentation prompted questions about outstanding department requests and the timing of school budget submissions. Hudgins said all town departments have submitted requests and that the school will provide its request after a joint meeting in March. He also flagged the need to re-evaluate sewer and water revenues to reflect recent town growth.
Next steps: staff will refine revenue projections, revisit transfers and fund balances after the audit, and return to the council for further budget work sessions ahead of formal adoption.
