The FY2026 budget guidance cautions that real estate tax rates may need to rise to meet the increased costs for infrastructure and school enrollment growth. Also, there is uncertainty in state and federal funding, and the regional economy.
FCCPS growth, driven by new residents moving into West Falls, Broad and Washington and Founders Row II, is a major factor in the 9.4% increase in the FY2026 budget guidance. Staff salary increase is about 5%.
City Council decided to fund the long-awaited Fellows Park project and two EV school buses. The School Board was surprised that their share was only $449,000. $1.67M of the FY2024 budget surplus will go to capital reserve.
The FY2024 surplus was primarily due to a higher investment return than the 2% budgeted, and higher property tax and meals tax revenues. The capital reserve was $13 million, and projected to go down to $2 million by 2030.
The new budget does not resolve the issue of how much debt will be used to fund upgrades to the sewer infrastructure, although the City Manager acknowledged the gap between developer fees and actual growth.
The FY 2025 Budget adopted after the tax rate was lowered another penny raised concerns about impact on Police accreditation and agreement with the School Board. No cuts to the Library.
The feasibility study for a new property yard on Gordon Road has been released, including placement of facilities on the lots and a concept design. One lot is left open for future public-private development.
Budget negotiations continue with department heads justifying their requests for 15 more staff. Focus on the three biggest departments – City manager’s office, public safety and public works.
The $138.3 million FY 2025 budget is a 16% increase that includes $11.8 million of capital spending. City staff will receive a 6% pay raise while real estate taxes average increase is 2.4%.
