Georgetown mayor proposes $47.7 million FY2027 budget with $8.8M in one-time capital, new positions and COLA

Mayor opened Council's budget presentation and summarized the mayor's budget message, saying the city's proposed general fund revenues for fiscal year 2027 are "projected to be approximately $47,700,000," about $580,000 more than the prior projection.

The budget calls for a 2.7% cost-of-living adjustment for city employees, plus an additional 1% to help offset increased employee pension contributions, and adds six positions: one assistant finance director, three police officers and two maintenance workers. "We have 254 positions proposed for 2027," Finance staff said in the briefing.

Why it matters: the proposal balances recurring operating revenues and expenditures while using reserve funds for one-time capital projects. Staff told the council that operating expenses alone are roughly balanced and that the administration proposes using reserves for capital priorities rather than increasing recurring spending.

Staff assumptions and metrics: Stacy, presenting budget assumptions and the KPI review, told Council the administration used conservative revenue growth assumptions for payroll taxes (about 5% for projections after prior years of stronger growth). She described fund-balance planning: the city's June 30, 2025 fund balance was about $31.9 million; using proposed one-time capital would reduce reserves but keep the minimum 30% fund balance policy intact under current projections. "Our operating budget actually has a $30,000 surplus," Stacy said, while noting that capital draws would reduce the headline fund balance.

Capital and one-time items: The draft FY2027 capital package totals $8.8 million of one-time projects. Major line items include $4 million allocated for Fire Station 4 construction, $640,000 for police department renovation design and $160,000 for a police support building design. The budget also includes roughly $1 million for stormwater infrastructure and $200,000 (city share $100,000) carried forward for cemetery land purchase. Staff noted construction-administration fees and possible reimbursement resolutions as options to preserve cash.

Personnel and public safety: The proposal funds three new sworn police officers and keeps a plan to apply for a SAFER grant to add additional firefighters in 2028 when Fire Station 4 comes online. Stacy noted the city is still below national peer staffing ratios but is slowly moving toward them.

Next steps and schedule: Council was told the first reading of the FY2027 budget will occur June 1 and staff will continue to monitor year-end revenues. The administration said off-budget amendments are possible if revenues exceed conservative projections.

Votes at a glance: At this May 11 meeting council approved a separate ordinance amending the FY2025-26 budget on second reading; the roll-call record showed the ordinance passed 8-0. The mayor also asked that the May 25 meeting be moved due to Memorial Day and the council approved that scheduling motion on voice vote.

Context and reaction: Multiple council members and committee chairs praised the clarity of the presentation and the conservative revenue assumptions. Some members asked staff to return with additional detail on interlocal agreements and to share slide decks used in the briefing.

What happens next: The budget's first reading is set for June 1; council will consider further readings and amendments before final adoption.