Budget Workshop/Public Hearing 5/28/25

Montreat Budget Workshop/Public Hearing Recap: A Look Ahead for the 2025-26 Fiscal Year

On May 28, 2025, the Town of Montreat held a public hearing to present and discuss its proposed budget for the upcoming fiscal year (2025-26). The meeting, attended by Town Council members and residents, focused on outlining the town's financial plan while addressing ongoing challenges related to Hurricane Helene recovery and broader economic factors. While no formal votes were taken during this session, the discussion provided valuable insight into the town's priorities and potential impacts on residents.

The proposed budget totals $2,502,815, representing a slight decrease of 5.79% from the current fiscal year. A key point of discussion was the projected decrease in general fund revenue (6.94% to $2,077,915), driven in part by the lingering effects of Hurricane Helene. To mitigate this impact on general fund spending, street maintenance projects will be primarily funded through a separate Hurricane Helene recovery fund (Fund 29). The budget prioritizes maintaining current services without raising the tax rate, which will remain at $0.43 per $100 valuation. A significant portion of the budget is allocated to Administration and Police, with a notable 13.36% increase planned for the Police Department to support staff and programs – though the take-home car program is not included in this increase.

During the meeting, several key topics were explored, including adjustments to water rates (with a 10% increase for fire control suppression systems), rising sanitation costs due to increased tipping fees and trash volumes, and the town’s ongoing recovery efforts from Hurricane Helene. The discussion also touched on broader financial challenges, including aging infrastructure and inflationary pressures. Opportunities identified included maintaining a healthy fund balance (though currently slightly below the town’s 40% policy), pursuing grant opportunities, and exploring cost-sharing partnerships.

Citizen participation was a vital component of the hearing. Resident Jean raised several pertinent questions, including inquiries about revenue generated by a penny, wage equity for town staff, the adequacy of funding for public works and street maintenance, and access to a five-year capital improvement plan. Her concerns highlighted the importance of transparency and accountability in budget decisions, particularly regarding ongoing recovery efforts and long-term infrastructure planning.

What Happens Next?

Following the public hearing, several action items were identified:

• Detailed Budget Information: Savannah will distribute a comprehensive breakdown of the budget to all attendees, providing department-specific details and fee schedules.
• Final Vote: The Town Council will hold a final vote on the budget at a future meeting, likely in June.
• Fund Balance Calculation: The town will calculate and share the precise percentage of the fund balance.
• Revenue Projection Review: The council will consider averaging water revenue projections over the past three years to provide a more stable financial forecast.
• Community Engagement: A community workday is planned to spread mulch throughout the town, and will be widely publicized.
• State Assistance Exploration: The town will continue to investigate potential state assistance for debris removal related to Hurricane Helene.

Why This Matters to You:

The upcoming budget will directly impact the services Montreat residents rely on, from public safety and infrastructure maintenance to sanitation and water rates. While the proposed budget aims to maintain current services without a tax increase, Mayor Putnam indicated that a potential tax adjustment may be necessary in the coming year due to financial pressures and property reassessments. The ongoing discussion surrounding Hurricane Helene recovery efforts underscores the importance of community involvement in shaping Montreat’s financial future. Residents are encouraged to review the detailed budget information when it becomes available and participate in future Town Council meetings as decisions are finalized.