TENTATIVE BUDGET FY2026-2027:
At the council meeting on May 19th, the FY 2026-2027 Tentative Budget was adopted in the amount of $97,691,340.00. The budget will now be posted for two consecutive weeks with the public hearing and final budget adoption on June 23rd.
This budget shows an increase of $40,238,364.00 from last year’s. The primary reason for this increase is for anticipated funding related to ongoing flood mitigation projects and the other potential grant opportunities. The law requires that all possible funding sources that may become available in the fiscal year be included and documented within the budget prior to the expenditure of those funds.
GENERAL FUND CONTINGENCY FUND POLICY:
Council voted to waive Section III of the 2025 Council General Fund Contingency Reserve Policy. This allows staff to reduce the budget amount of $3,000,000.00 to $2,500,000.00 for this budget year. Council established this reserve policy last year to assure and maintain a minimum amount in this fund that is used for emergency purposes sometimes referred to as a rainy-day fund. The reason for this waiver is to be able to balance this year’s budget due to projected revenue loss and projects to help stabilize our infrastructure due to the flooding event.
ORDINANCE NO. 897 0.3% SALES TAX REDIRECTION:
City Council approved Ordinance No. 897, which redirected the 0.3% sales tax instituted in 2016 to address the city’s $10 million-dollar unfunded PSPRS liability for police and fire. This tax, combined with an initial $1 million dollar payment, helped place the city at 80% funding.
The reduction in liability now allows the city to redirect funds toward payments for the construction of a new fire station estimated at $13 - $15 million, without placing an additional burden on the city residents through property tax.
JESSE HAYES ROAD SIDEWALK PROJECT:
The Jesse Hayes Road sidewalk and drainage project is scheduled to begin in June. The design and procurement process has been completed with the contract awarded to Doege Development LLC. The total cost for this project is $3,336,805.52 that is funded under the RTAC state appropriations with a city match of approximately $165K.
NEW FIRE STATION:
Since 2019, the council has been actively seeking funding incentives through both federal and state programs. One option explored was assistance through the federal rural USDA program. Unfortunately, due to limited funding availability, this option was not successful.
Under the proposed funding plan, the city would proceed with advertising for bonding and securing financing. The annual payment obligations would be offset through the redirection of the existing 0.3% sales tax along with approximately $300K from annual revenues.
This project has experienced delays caused by several major events and economic challenges, including Covid, Telegraph Fire, and Flooding. The rising construction material costs following the pandemic, and ongoing supply and demand shortages have contributed to the rising cost of the construction of the new station.
Extensive research was conducted in the city to identify a suitable location that would provide highway access while also being outside of a designated flood plain. After careful consideration, the city identified the former medical facility located on East Ash St. as the preferred site. The structure will be demolished to allow for the construction of a completely new two-story fire station built from the ground up.
NRCS PROJECT UPDATE:
A presentation was made by Tiffany Construction who is the company that was awarded the contract to remove sediment from our creek bed and stabilize sections of the creek wall. The city was awarded funding from the NRCS in January in the amount of $24 million dollars for this project. There is a 25% city match in the amount of $5.5 million dollars. We remain optimistic about a FEMA Declaration which would drop the city match to 10%. In our earlier Washington DC trip, we met with representatives for NRCS asking for a complete waiver of the 25% city match.
This project carries a strict requirement that all work be completed within 220 days. Civil Tech has completed engineering of the project and ready to begin Phase 1. Tiffany Construction is also working with local contractors to be part of this project to ensure this project is completed before the monsoon season. Tiffany has leased the previous Empire building across from city hall on highway 60 as a staging location for all the equipment and is hiring.
FLIGHT MEDICAL INSURANCE:
The annual PHI flight insurance membership was not renewed for city residents this year due to revenue losses as we recover from the flood. We encourage all residents to self-renew their membership. The cost for the annual renewal is $30.00 per year for your entire household if done before August 12, 2026. Contact Carrie Brookshire, PHI Membership Manager at 855-625-0352 for more information.