Council reviews 2027 tax budget projections; staff projects $500K general‑fund surplus, higher police subsidy and larger fire subsidy

At the June 18 work session Trenton finance staff summarized the procedural 2027 tax budget and key operating projections, including revenue and baseline expense estimates and several service funding impacts.

Finance Director Matthew Masiskos said the tax budget is a revenue estimate used by the county budget commission and not a final spending approval. He reported submitted revenue of $25,831,187 and printed expenses at $26,433,786 and said staff projects a $500,000 general‑fund surplus largely through anticipated interest receipts and expected recoveries from the RITA legal program.

Masiskos outlined specific operating impacts for 2027: an anticipated $360,000 increase in the general‑fund police subsidy tied to bargaining contracts and a planned increase in the general‑fund contribution to maintain fire operations from recent $300,000 annual support to $600,000 in 2027. He said, separate from water/sewer, the city expects a 4% increase in garbage costs and a 1% street‑light increase. For large industrial water users he projected a 3.6% increase while maintaining residential water/sewer rates flat for five years because of developer tap‑fee deposits.

On income tax receipts Masiskos reported the city is about 19% behind year‑to‑date compared with last year, attributing much of that gap to changes in RITA filing and follow‑up windows that delay outreach to nonfilers until mid‑October; he said that data will be pursued through RITA’s legal program and that the city can seek missed revenues back up to six years.

Masiskos said he would provide a more detailed mid‑year (June) financial report to council and that staff will return with further detail on rate‑setting options if council wants to consider an ordinance to lock in residential rates.