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Finance director previews FY27 operating budgets and warns of rate pressures
Summary
Finance Director Matt Baker presented a conservative draft of the FY27 operating budget, projecting roughly $14.2 million in general-fund operating revenues and about $14.0 million in expenditures, and warned that sewer, saltwater and solid-waste rate decisions will be discussed at an upcoming meeting.
Matt Baker, Avalon’s finance director, gave council a detailed preview of the city’s operating budgets and said the draft aims to be conservative so the city can absorb unforeseen shortfalls.
"The one bullet point I do wanna emphasize tonight is that estimates will continue to be updated throughout the development of the budget process," Baker told the council as he walked through staffing, contract and revenue assumptions. He said the general fund entered the year with about $15.5 million and staff are working under an assumption of roughly $14.2 million in operating revenues for FY27.
Baker broke out personnel and contract drivers, saying about 65% of salaries-and-benefits costs are direct wages and noting the sheriff's contract and chamber allocation are among the largest recurring contract expenditures. He also described the harbor fund outlook, estimating operating revenues of $12.4 million and net operating revenue available for harbor capital of roughly $2.4 million before large grant-funded CIP projects begin.
Council members pressed for more detail about how proposed increases in sewer, saltwater and solid-waste rates would affect residents and the timing of any rate changes. Mayor Marshall asked staff to present clear estimates of the net new cost to residents at the next meeting; Baker agreed to include those numbers and a discussion of options for general-fund support or loan structures to mitigate rate impacts.
Baker flagged several one-time and grant-funded projects that affect cash-flow timing — including the Mole project and planned Green Pier decking replacement — and said many capital projects will require local matches even when largely grant funded. He said staff will present sewer, saltwater and solid-waste budgets, and a rate-study analysis, at the next meeting so council can weigh whether general-fund help is warranted.
The presentation closed with council members thanking Baker for the clarity of the slides and requesting online posting of the materials for public review.
