Richwood council sets record ceiling on tax rate, asks staff for midrange budget scenarios

The City Council of Richwood directed staff to publish a proposed tax-rate ceiling of 0.595560 for fiscal year 2026–27, a number staff said represents up to 7.9% above the no-new-revenue rate and preserves flexibility while the city finalizes budget figures.

"We don't have a lot of other revenue," the Finance Director said in a detailed presentation, adding that property tax currently accounts for 70.29% of projected general-fund revenue. The staff presentation showed the effect on a $250,000 home would be roughly an $86–$90 annual difference between the existing rate and the highest option presented.

Council members asked for intermediate scenarios and a conservative bottom line to guide the final budget. One council member said she preferred the 3.5% voter-approval variant because it covers near-term costs including software implementation and wage increases: "I think we probably brought in enough money," the council member said during deliberations.

Finance staff explained the mechanics of an "unused incremental rate" the county calculates when a city previously set a rate below allowed levels; using that incremental amount can recapture revenue lost in prior years, staff said. The Finance Director cautioned that the budget remains provisional pending insurance-premium figures expected ahead of the September approval.

The council also adopted resolutions setting public hearings on the proposed tax rate and the annual budget for Sept. 14, 2026, at 6 p.m., allowing the public an opportunity to comment before final votes.