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File #:
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25-195
Version:
1
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Name:
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Type:
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Report
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Status:
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Agenda Ready
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On agenda:
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7/15/2025
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Final action:
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Title:
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Town of Westlake FY 25-26 Budget Work Session (Cayce Lay Lamas, Finance Director)
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TOWN STAFF REPORT RECOMMENDATIONS
title
Town of Westlake FY 25-26 Budget Work Session (Cayce Lay Lamas, Finance Director)
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STAFF: Cayce Lay Lamas, Finance Director
BACKGROUND:
The Town of Westlake is required to adopt a budget annually before its fiscal year end on September 30. Additionally, the Town of Westlake levies an ad valorem tax on all real property to provide funds for the adopted budget; the tax rate must also be adopted prior to September 30.
The purpose of the work session is for staff to provide Council a preliminary picture of the Town’s FY2026 budget and discuss potential impacts or changes relating to fund balance policy, capital improvements, service level adjustments, personnel costs, and the property tax rate.
DISCUSSION:
The draft budget for FY2026 anticipates total revenues of $33.9 million, which is an increase of 2% over the FY2025 adopted revenues. Draft expenditures total $28.5 million, which is a decrease of 4% from the FY2025 adopted expenditures. The draft budget reflects a potential total contribution to fund balance/retained earnings of $5.4 million and is exclusive of the capital improvement plan projects or service level adjustments which total $365,500 and $1,270,000 respectively. Totals reflect activity across all funds, broken down as follows:
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FUND |
REVENUES |
EXPENDITURES |
CONTRIBUTION (USE) OF FUND BALANCE |
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ALL FUNDS |
$33,953,768 |
$28,534,480 |
$5,419,288 |
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General Fund |
16,484,175 |
13,307,075 |
3,117,100 |
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4B Sales Tax/EDC |
3,775,000 |
2,626,128 |
1,158,872 |
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HOT/Visitors Assoc. |
631,000 |
547,500 |
83,500 |
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Public Imp. Dist. |
0 |
5,000 |
(5,000) |
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Cemetery |
57,800 |
40,100 |
17,700 |
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Sales Tax Debt |
1,943,728 |
1,943,728 |
0 |
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Property Tax Debt |
1,475,631 |
1,475,631 |
0 |
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Town Capital |
75,000 |
0 |
75,000 |
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Academy Capital |
75,000 |
0 |
75,000 |
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Arts & Sciences* |
50,000 |
0 |
0 |
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Utility Fund* |
8,066,500 |
7,279,384 |
787,116 |
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Utility Debt |
1,319,934 |
1,319,934 |
0 |
*The Arts & Sciences and Utility funds exclude expenditures reflecting the full amount of the 2025 certificates of obligation projects ($4 million and $5.5 million, respectively). The proceeds will be recorded as an offsetting revenue during FY2025 and those funds will effectively draw down fund balance/retained earnings while those projects are completed. They are listed on the Capital Improvement Plan (CIP).
Council will also discuss the potential capital improvement projects and service level adjustments for FY2026. Approval of these items would add $1,635,500 to the operating budget. The CIP, as presented, itemizes projects over the next five fiscal years and plans for a variety of funding sources. It is expected that the outer year costs are estimates for both the timing and cost of the projects. Approval of the CIP does not commit funds for future years; approval of an updated plan will occur annually. As part of the budget adoption, Council will only appropriate those projects with identified and available funding for FY2026.
Initial personnel costs included in the draft budget assume a 3.5% salary adjustment, 12% increase to insurance costs, 5.5% increase for pension costs, and changes to benefit pay, including longevity, step up, and certification pay, to ensure the Town’s compensation package is in line with surrounding cities. These increases are partially offset by the reduction of one (1) FTE (paramedic), resulting in a 5% total increase to personnel costs.
FISCAL IMPACT:
The current draft budget totals $28.2 million in expenditures and a combined contribution to fund balance/retained earnings of $5.8 million.
ATTACHMENT(S):
FY2026 Draft Budget Summary
FY2026-2030 CIP Schedule
FY2026 Service Level Adjustments
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