Council adopts FY2027 budget, adjusts tax rates and approves community contributions

New Castle's City Council adopted the fiscal year 2027 budget June 12 and approved a package of community contributions in a meeting that included debate over tax-rate changes designed to rebalance the distribution of property-tax revenue.

Council members said the budget settles at a general fund total of $8,743,973 and a grant budget presented as approximately $2.27 million in the record; the ordinance language adjusts residential and commercial property-tax rates to restore a target distribution between residential and commercial receipts after a recent reassessment altered relative assessed values.

Council and administration described the rate-setting approach as designed to return the revenue split toward its historical mix (previously about 40% residential / 60% commercial before reassessment). The ordinance text as read to council included figures for new tax rates and an adopted total city budget (the clerk read the ordinance language into the record). The council noted that the presented figures reflected months of line-by-line budget workshops and a single $2,000 addition for a community group was added since the June 1 presentation.

As part of budget adoption, the council separately approved city contributions to local organizations. Recorded contribution votes included: $55,000 for the Willow Fire Company; $40,000 for the New Castle Library (the vote recorded "all in favor" with one abstention noted; the transcript does not specify which councilor abstained); $3,000 to the New Castle Community Partnership (one abstention recorded); $20,000 to the New Castle Historical Society; $6,000 to the New Castle Senior Center; $48,976 to Buttonwood School; $3,500 to the Balanca Airfield Museum; $5,000 to Encore; $2,000 to Bullhill Boatyard; and $4,000 to a community collaboration group.

After those individual votes the council adopted the full budget ordinance by roll-call vote: Council President Suzanne Solder and Council members Joseph Day, Andrew Zelt, Nurman Zubaka and Brian Mawick recorded "yes," and the ordinance was adopted with the contributions included. The council discussed next steps for the city's capital-improvement planning and confirmed the administration will publish fee schedules and the finalized budget documents after audit.