Farragut board advances FY27 budget on first reading, approves CIP amendment and several contracts

The Town of Farragut Board of Mayor and Aldermen moved the town's FY27 budget forward on first reading at its May 14 meeting and approved a series of capital and contract items, including a second‑reading adoption of a CIP amendment and several professional services agreements.

Tessa Cortez, the town's finance director, presented the proposed fiscal year 2027 general fund revenue and expenditure figures, telling the board the proposed general fund revenues are $19,225,404 and proposed general fund expenditures are $13,160,060. Cortez summarized major revenue drivers — local sales tax, state shared revenue and wholesale taxes — and outlined program changes including a proposed 3% cost‑of‑living adjustment and a 3% merit increase for staff, and a projected 7% rise in health‑insurance costs.

During the public‑comment period the Farragut Business Alliance requested increased event funding to cover higher rental and insurance costs. Candice Biox, speaking for the FBA, described volunteer work and local events and asked the board to increase the group's funding. Alderman McCain moved to amend the first‑reading budget to include roughly $15,000 more for the FBA; the board accepted the amendment and approved ordinance 26‑11 on first reading by unanimous roll call.

On a separate matter, the board adopted ordinance 26‑07 on second and final reading to amend the capital investment program fund budget to cover final design costs for the Campbell Station renovation project, increasing CIP expenditures by $17,825 (from $25,000,884.92 to $25,018,709.92).

The board also approved these business items and contracts as presented by staff:

- Professional services agreement with AECOM Technical Services for GIS consulting services, with an FY27 annual maximum proposed at $55,000 and a three‑year contract with possible one‑year extensions.
- Professional services agreement with Johnson, Mirmarone & Thompson (JMT) for right‑of‑way acquisition services for the Virtue Road Phase 2 multimodal improvement project (fee: $249,600). Staff said property owners will be contacted before acquisition negotiations.
- Selection of TSW & Associates to lead a master plan for a 70‑acre site on McPhee Road; staff noted the town received a $2,750,000 Land and Water Conservation Fund reimbursement grant that will cover 50% of the purchase price and described a public‑engagement plan (surveys, workshops, pop‑ups).
- Construction contract 2026‑26 for a two‑room restroom facility at McPhee Park with Skilled Services LLC for $252,800 plus a 10% contingency; staff said the project is $50,000 under the original projected budget and would start in June with a December completion target.
- A statement of work with Canon USA to scan wide‑format plans for an amount not to exceed $30,000; staff noted many large-format legacy plans must be retained for records and recommended proceeding.

Board members generally praised staff work on the budget and projects and approved the listed ordinances and contracts by roll call or unanimous voice votes where recorded. Finance staff also described a set of year‑end budget transfers that the town administrator has approved under ordinance authority for intra‑fund line‑item adjustments under $25,000.

Votes at a glance:
- Ordinance 26‑11 (FY27 budget): Approved on first reading (unanimous roll call).
- Ordinance 26‑07 (CIP amendment): Approved on second and final reading, 4–0 roll call.
- AECOM GIS agreement: Approved as requested (consent/voice).
- JMT right‑of‑way agreement: Approved as requested (consent/voice).
- TSW master plan selection: Approved (motion and second on the floor).
- Contract 2026‑26 (McPhee restroom): Approved as requested.
- Canon USA statement of work (document scanning): Approved as requested (with board direction to return with a quote to scan remaining legacy plans if needed).

What happens next: Staff will finalize contracts and return necessary documentation to implement the CIP projects and master‑planning work. The budget will return for subsequent readings required by ordinance.