$128 million limitCouncil will decide on the 2027 expenditure limitation at tonight’s council meeting. The tentative budget now before council is about $128 million. That is about $2.1 million less than the town manager's initial recommendation. The limit matters because spending next year cannot exceed it. Council may approve a final budget below that amount, but not above it.
No much has changed from our previous reports
LOVE has previously discussed the 2027 Town Manager’s Recommended Budget in four articles. The first article focused on revenue and forecasting variables. The second focused on where the money would be spent. The third focused on personnel spending. The fourth provided council and mayoral candidates reaction to the budget.
Tentative budget is $2.1 million lower than the Town Manager’s recommendation
The latest budget is about $2.1 million less than the Town Manager’s Recommended Budget. The reduction is mostly because several project costs were refined after the May budget presentation. Bridge and transit-related spending was reduced or moved to reflect local match amounts rather than full project costs. That accounts for most of the reduction.
Smaller changes were made to personnel estimates, legal services, and stormwater projects. Stormwater funding increased for the Catalina Ridge Channel Modification project and a new Nanini Wash erosion mitigation project. These changes reduce the proposed expenditure limitation from about $130 million to about $128 million.
Budget still maintains current service levels
Much has not changed from the budget LOVE previously reviewed. The budget remains focused on current services, not major service expansion. Staff says the tentative budget maintains current service levels, provides eligible employees up to a 3% pay increase, and continues investments in infrastructure, employees, and Town operations.
The latest budget is about $2.1 million less than the Town Manager’s Recommended Budget. The reduction is mostly because several project costs were refined after the May budget presentation. Bridge and transit-related spending was reduced or moved to reflect local match amounts rather than full project costs. That accounts for most of the reduction.
Smaller changes were made to personnel estimates, legal services, and stormwater projects. Stormwater funding increased for the Catalina Ridge Channel Modification project and a new Nanini Wash erosion mitigation project. These changes reduce the proposed expenditure limitation from about $130 million to about $128 million.
Budget still maintains current service levels
Much has not changed from the budget LOVE previously reviewed. The budget remains focused on current services, not major service expansion. Staff says the tentative budget maintains current service levels, provides eligible employees up to a 3% pay increase, and continues investments in infrastructure, employees, and Town operations.
While spending significant funds on capital projects
The proposed Capital Improvement Plan totals about $24.2 million. That is about 19% of the tentative budget. The result of this spending is a net drawdown of about $13.1 million in total fund balances. The drawdown reflects money accumulated or borrowed for some key projects that will be completed done in 2027. Examples include $6 million for NWRRDS water resource capital work, which follows prior utility financing for that multi-year project; about $2 million for the Vistoso Trails Nature Preserve Pond; $1 million for police headquarters planning and development; and about $676,000 for the Tangerine Road/Mussette Drive traffic signal.
Budget vote on June 17
Tonight’s vote does not adopt the final budget. It sets the maximum expenditure limitation for FY 2026/27. Council is scheduled to hold the final budget public hearing and consider final budget adoption on June 17. That will also be a public hearing.
The proposed Capital Improvement Plan totals about $24.2 million. That is about 19% of the tentative budget. The result of this spending is a net drawdown of about $13.1 million in total fund balances. The drawdown reflects money accumulated or borrowed for some key projects that will be completed done in 2027. Examples include $6 million for NWRRDS water resource capital work, which follows prior utility financing for that multi-year project; about $2 million for the Vistoso Trails Nature Preserve Pond; $1 million for police headquarters planning and development; and about $676,000 for the Tangerine Road/Mussette Drive traffic signal.
Budget vote on June 17
Tonight’s vote does not adopt the final budget. It sets the maximum expenditure limitation for FY 2026/27. Council is scheduled to hold the final budget public hearing and consider final budget adoption on June 17. That will also be a public hearing.
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