Callaway budget workshop keeps tax rate at 2.7 mills; staff says reserves remain strong

City leaders gathered July 28 to review the draft fiscal year 2027 budget and to consider how the city will handle property‑tax fluctuations without raising the millage rate. Chair opened the workshop and staff framed the proposal as fiscally cautious: the draft holds the tax rate at 2.7 mills and preserves large reserves.

"I think this city's financial position is excellent," said a senior staff member presenting the overview, noting the city carries reserves above the state-required 17% and that the commission has targeted roughly 27–30% as a prudent level. The presenter said the administration prefers to absorb property-tax shortfalls through reduced capital spending rather than dipping into reserves.

The budget summary shows an estimated ad valorem amount for operations of roughly $2,258,632 and total estimated revenue tied to the millage rate of about $2,769,336. Commissioners asked for clarifications on debt service, outstanding balances and how restricted impact-fee funds are treated; staff committed to delivering a debt‑service schedule and a breakdown of restricted versus unrestricted reserves before the next workshop. "We will get that for you," the presenter told the commission.

Why it matters: the commission is balancing a desire to maintain services and protect reserves while funding sizable capital projects that are largely grant‑funded. Staff cautioned that capital projects will be adjusted if revenue assumptions change, and they noted several large grant matches and carryovers that affect the CIP totals. The commission scheduled follow-up requests for more granular figures at the next budget meeting on August 12.