Town staff outlines proposed FY2025–26 budget with $52.1M in operating revenues and $83.4M in capital projects

Town staff presented the proposed Fiscal Year 2025–26 budget on Aug. 14, saying operating revenues are $52,100,000 against $52,000,000 in operating expenditures and forecasting a modest operating surplus of roughly $132,000.

Thompson, the staff presenter, told the council the town maintains a conservative budgeting approach to ensure revenues exceed expenditures and is planning to use built-up fund reserves for some one-time purchases and replacements. "We are almost at the finish line," Thompson said as he opened the presentation and walked through revenues, the general fund and capital program.

The general fund was estimated at $13,860,000 in revenues and $13,810,000 in expenditures, leaving about $47,000 in surplus; the ending general-fund balance is projected at $4,800,000, roughly 35% of operating costs and above the towns 33% fund-balance policy. Thompson said the budget assumes a storm-drainage fee to reduce pressure on the general fund because drainage activities are currently supported by property tax.

Staff listed eight proposed personnel additions across departments: two police corporals, a school resource officer (to be cost-shared with the school district), a public-works utility supervisor and a street supervisor, an equipment operator for striping, a records clerk to support the town secretary and a purchasing agent to streamline finance functions. Thompson also said the town plans about $1.2 million for new and replacement vehicles and equipment; he cited that outfitting a police patrol vehicle now costs about $120,000.

On capital projects, Thompson said the town's capital improvement program totals about $83,400,000 in projected costs with $51,900,000 available now and a proposed debt issuance of up to $32,400,000 depending on project timing. He noted road projects ($13.6M) are typically supported by property tax while water and sewer projects are funded by utility revenues and impact fees. The Star Center was described as one of the larger building projects, with a projected completion around June 2026.

Chair opened a public hearing on the proposed budget and invited comment; resident Joel MacGregor noted a recent appraisal-district correction to his homestead taxable value and cautioned that appraisal errors could affect revenue estimates. Council ultimately voted to continue adoption of the budget to a special meeting on Aug. 21, 2025, allowing additional time before final adoption and the linked tax-rate adoption.