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Mead staff flags sewer‑fund shortfall; board directs reserve policy set to ~60% as budget work continues
Summary
Administrative Services Director Mary Strutt reported mid‑year finances showing revenues about 51.7% of budget and general‑fund expenditures at ~41% of budget; staff flagged the sewer enterprise fund as underperforming and recommended a potential rate study. Trustees directed staff to draft a reserve policy around 60%.
Administrative Services Director Mary Strutt presented the town’s 2nd‑quarter financial statements at the July 27 meeting, reporting year‑to‑date total fund revenue of about $5.9 million against an $11.4 million budget (about 51.7% of budget) and general‑fund expenditures of approximately $4.7 million (about 41% of budget).
Strutt highlighted that the town budgeted 91 new single‑family homes for 2026 but had issued 41 new building permits as of July 24, a shortfall she said could depress impact‑fee revenue and affect the sewer enterprise fund. "The sewer enterprise fund is one that we might need to be looking at as a little concerning," Strutt said, noting revenues are under budget because tap fees and new construction have not met earlier projections. She recommended the board consider a sewer rate study to reconcile rates with plant maintenance and capital needs.
Trustees discussed reserve policy and peer comparisons. Strutt noted the town’s 2016 reserve policy recommended 30–40% general‑fund reserves but suggested the board consider increasing that target. After discussion, staff recorded the board’s direction to update the reserve policy at roughly 60% for the general fund and to leave sewer and impact‑fund targets for later action. "We're saying maybe you should consider 50 to 60%," Strutt said; later she confirmed staff would "do it about 60%" and return a resolution for board approval. Staff also agreed to pull prior rate‑study materials and prepare recommendations on sewer rates and timing for further board consideration.
The financial presentation included other details: property‑tax budget of $2.5 million with 75% collected year‑to‑date, sales‑tax receipts at about 46% of the annual budget, and Q2 investment interest earnings noted in the presentation. Staff said they will use June 2026 actuals to prepare 2027 beginning fund balances and the initial budget presentation scheduled for Sept. 28, 2026.
