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Town manager proposes preliminary budget that holds taxes flat while tapping one‑time funds
Summary
Town Manager Ralph presented a preliminary FY2026–27 budget that uses restricted fund balances and one‑time transfers to avoid a municipal tax increase while warning of rising debt service from forthcoming school and public safety bonds.
Town Manager Ralph presented the manager's proposed FY2026–27 budget and urged the council to post it for public hearing. He said the plan keeps municipal spending growth near 3% and uses one‑time fund balance to avoid a tax increase while funding limited purchases and preparing for higher debt service tied to two voter‑approved bonds.
"We're dipping into fund balance for the first time," Ralph said, adding that the budget includes a $500,000 draw to smooth near‑term impact and to preserve long‑term bond ratings. He emphasized the budget treats enterprise funds — water, sewer, Allen Harbor and the golf course — as self‑supporting and said remote net‑metering has reduced utility costs.
The manager warned the council that next year's debt service will increase substantially when the town moves from bond‑anticipation notes to full bonding for the school and public safety projects. He described the BAN strategy as a timing tool to avoid paying interest on unspent cash and said the town is studying whether to roll smaller issuances into larger bonds later.
Councilors pressed the manager on the sustainability of using the fund balance. One councilor raised renewable‑energy financing as an alternative investment; Ralph said remote net‑metering has so far saved the town "hundreds of thousands" and remains a priority.
The council voted to post the manager's preliminary budget for public hearing on April 13. That vote begins the formal public comment period and does not finalize appropriations.
