Fairview commissioners weigh 19¢ vs. 25¢ tax options to shore up budget, avoid staff cuts

The Fairview Board of Commissioners met June 11 to review two proposed budgets for fiscal year 2026–27, one tied to a 19-cent tax-rate increase and the other to a 25-cent increase, and to consider how to protect city services while addressing an emerging debt-service and FEMA reimbursement shortfall.

Mayor Riyle introduced the two proposals and a multi-year revenue-and-expense comparison showing how restricted borrowing and cyclical revenue streams affect the city’s unrestricted fund balance. He emphasized the exercise was for discussion only: “this is for discussion only. There will be no vote,” he told the board.

City staff (Mr. Knox) explained the two packets and noted the 25¢ option would produce a larger near-term surplus. He told commissioners how to identify the packet versions and summarized the practical difference: both budgets would preserve current staffing levels, but the 25¢ option leaves more room to fund the city’s FEMA match without drawing on restricted reserves.

Commissioner Roberts, citing conversations with residents, said he had heard that many prefer a modest tax increase to avoid cuts: “The answer was you have to raise taxes, but you also should mitigate how much that raise needs to go and then we need to have a plan because we can't come back to this again,” he said. Commissioners repeatedly identified parks, public safety (fire and police), and public works as services the community wants preserved.

Staff outlined a projected FEMA payback scenario: if the state (referred to as TEA in the discussion) contributes nothing, the worst-case FEMA obligation would be about $675,000. Under the 25¢ plan staff estimated the city could accumulate roughly $480,000 toward that obligation over three years, leaving a remaining gap; if the state contributes, the city’s share would fall roughly to half that amount.

Officials also discussed fund 300 (building permits) which has less recurring revenue and is currently running a deficit for certain planned expenditures. Mr. Knox recommended options including moving the $243,000 annual A-bond payment into the general fund or applying part of the 25¢ surplus to stabilize the 300 fund rather than tapping restricted reserves.

On personnel, commissioners raised a hiring-freeze approach applied case-by-case rather than a blanket freeze; public works was repeatedly identified as a department under strain from the chipper program. Commissioners proposed alternatives such as retaining equipment but moving to a quarterly community drop-off model to reduce field workload without fully cutting the service.

The board discussed holiday pay for first responders, clarifying that the proposed budget sets standard paid holiday hours for employees who are off duty, while employees who work a holiday would be paid for the actual hours worked (for example, 24 hours for a firefighter on duty during a holiday). Commissioners expressed unanimous support for compensating first responders who sacrifice holiday time.

Commissioners also reviewed the $5,000 discretionary community funds they each control. Several elected officials described the organizations or programs they supported last year — including Fairview High School athletics, a life-skills washer/dryer purchase, youth programs and local nonprofits — and noted the funds were generally directed to local nonprofit or youth-serving uses.

Staff said they will refine the budget based on tonight’s guidance and present a revised proposal at the June 18 public hearing, after which the board will consider a final vote.

What happens next: The board scheduled a public hearing and final reading for June 18 at 7 p.m.; staff asked commissioners to provide any line-item suggestions prior to that meeting.