Mills River staff present FY2027 proposed budget with $4.9M in capital projects; public hearing set for June 16

Town staff presented the proposed FY2027 strategic operating plan and budget to Mills River Town Council, outlining operating and capital priorities, reserve targets, and the public‑engagement schedule.

The budget recommended a 2.49% increase over FY2026 and a proposed property tax rate of 17 cents. Staff said overall operating revenues are roughly $9.9 million and that the total budget figure shown for FY27 in the packet reflects project‑specific grant and capital financing (the proposed total was presented as roughly $12.1 million, including $4.9 million in capital projects). “Almost $4.5 million is looking at FEMA major capital project expenditures,” a staff member said, noting the inclusion of north repairs, riverbank repairs, park expansion and other FEMA‑related work.

Staff emphasized fund balance planning: the town’s available fund balance was reported at about $10.5 million; under current projections the available amount would remain within the council’s target range (65–75% of operating expenses) even after funding the proposed capital program. Staff said the town is taking a conservative approach to FEMA reimbursements in the budget (assuming 75% reimbursement for planning purposes) rather than assuming full 100% reimbursement.

The proposal also included placeholders for two council decisions raised at the budget workshop: a mid‑year council pay increase (effective January 1 as modeled) and a $35,000 capital line for common‑room AV upgrades. Staff clarified that including a line item in the budget does not automatically enact a pay change; council must authorizing action to make raises effective.

Finance staff explained five‑year forecast assumptions, a plan to add one FTE in FY29 and FY30 if needed, and the need to align capital projects with CIP timing. Staff noted that the maintenance facility schematic and timing would be coordinated with the FY28/FY29 CIP and that any financing for construction would require necessary approvals, including from the Local Government Commission.

Council scheduled a public hearing on the proposed budget for June 16 and reserved June 25 as a backup date for adoption if needed. Staff invited public comment via the town website and reiterated that council will act on the budget by the state‑mandated July 1 deadline.