City manager proposes 16¢ property tax increase for FY27 as staged two-year plan

Mister Branham, the city manager, transmitted his FY27 budget estimate to the Red Bank Commission and asked commissioners to consider a phased property tax increase that would add 16¢ in fiscal year 2027 and another 16¢ in fiscal year 2028.

Branham said the FY27 request would set the property tax rate at $1.29 per $100 of assessed value, up from the current $1.13. "I request 16¢ this year and another 16¢ next year," he said, explaining the two-step plan was chosen to split the gap between a current-rate shortfall and a revenue-neutral $1.45 rate staff considered too sudden. He said the $1.29 proposal would generate about $6.5 million in property-tax revenue, produce total revenue just over $12 million and require using approximately $804,000 of fund balance while leaving an ending fund balance of about $6.7 million, roughly 53% of expenditures.

Branham framed the increase as part of a broader package that preserves a 2.25% cost-of-living adjustment for employees, sustains the city’s match for the local property-tax relief program, and funds the city’s first five-year Capital Improvement Program (CIP). He said the CFO had identified the current $1.13 rate as a "no go" because it would draw the general fund below the staff's reserve threshold, noting at the $1.13 rate the budget would use about $1.6 million of fund balance and leave roughly 46% of expenses covered by reserves.

The schedule staff outlined includes an outreach town hall and two ordinance readings in May and June that would precede formal adoption. Branham emphasized that the full budget packet, department memos, the FY27 spreadsheet and a 39‑page Q&A are available on the city’s finance web page for residents and commissioners to review.

No formal vote was taken at the work session; the manager officially submitted the estimate and staff said the commission will consider the ordinance readings at upcoming regular meetings.