AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE
title
FY2026 Budget Development Update: Data, Scenarios, and Tradeoffs
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT
Mary Jane Nirdlinger, Interim Town Manager, Manager's Office
Amy Oland, Business Management Director, Business Management
STAFF RECOMMENDATION
Council receive the attached information and the staff presentation and provide guidance to staff as we develop the Manger's Recommended Budget. Specifically, staff is asking Council to provide:
* Guidance about whether there are areas where you would like us to consider a reduction in services.
* Guidance about where to set the tax rate, in the range between the current tax rate and revenue-neutral, as applied to the new valuations.
* Guidance about whether you would like to apply resources across the board or to targeted areas of focus.
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LEGISLATIVE CONTEXT
Manager Nirdlinger will present the Manager's Recommended Budget on May 7, 2025. In order to develop that budget staff need guidance from Council, in addition to departmental budgets, County revaluation data, and other inputs that factor into crafting the Manager's Recommended Budget.
Key Dates for Budget Legislative Process:
May 7 Manager's Recommended Budget
May 14 Budget Work Session
May 21 Budget Public Hearing
June 11 Council Business Meeting to consider adopting the FY2026 Budget
BACKGROUND AND CONTEXT
In 2023, the Council adopted a 5-cent tax increase to "begin to address some of our needs" as explained in the FY2024 Manager's Budget Message. The FY2024 Budget accomplished the following:
* Increased the Affordable Housing Development Reserve to a full penny
* Established a Penny for Parks and Recreation
* Increased the Climate Action allocation to a full penny
* Allocated 1/2-cent for Everywhere-to-Everywhere Greenways implementation.
* Provided funds to address the increased cost of services and expansion of priority programs.
In 2024, the Council adopted a 2-cent tax increase which in...
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