In one minute
Town of Port Royal Budget Workshop #3 (2026). Staff presented a balanced FY27 draft budget totaling roughly $11.81M with no millage increase, proposed use of ~50% of expired TIF funds to cover a ~ $358,747 shortfall from property tax exemptions, reviewed personnel cost increases and several fee/revenue and reserve matters. Council asked questions; staff identified next steps for fee reviews and potential service fees. (No motions or formal votes recorded.)
Executive summary
Staff presented a proposed FY2026/27 budget with total expenditures of about $11,810,735 and stated the draft does not increase millage. Due to property tax exemptions the town faces a shortfall (stated as ~$358,747) and staff proposed using about 50% of dollars from an expired TIF to balance the budget while not drawing on the general fund/reserves. Personnel-related costs (COLA/adjustments, retirement, FICA, and insurance increases) account for most of the year-over-year increase. Staff outlined reviews of stormwater utility fees, development/site-plan fees, building-permit fees, and possible fire/police service fees as follow-up actions, and suggested modestly increasing council discretionary project/contribution funds from $41,850 to $55,000 as a buffer. Council voiced support and had no further questions; no formal motions or votes were recorded.
Why it matters
The budget presentation explains how the town intends to maintain current millage and balance the FY27 budget despite a substantial property tax revenue shortfall caused by exemptions, by reallocating one-time TIF resources and holding reserves intact. Decisions about fee structures (stormwater, permitting, service fees) and discretionary funding will affect revenues and service cost recovery going forward.
Key decisions
Source/Context: Staff: "what we're looking right right now is a budget total expenditures of about 11,810,735 $735." (17:50–17:58)
Source/Context: Staff: "we've tried to put together a budget that did not increase millage whatsoever" (17:18–17:43)
Source/Context: Staff: "use about 50% of it to balance that budget for the upcoming fiscal year." (19:19–19:28) and referenced a pre-transfer deficit of $358,747 (19:31–19:35).
Source/Context: Staff/Council: "we were not touching the fund balance" and "you were able to balance this budget, keep the property taxes the same and not have to dip into our savings" (26:32–26:46; 26:57–27:04).
Source/Context: Discussion of personnel costs: "there's a 5% increase 3% cost of living 2% adjustment and then across every single... personnel related line item" and "salaries across the board" (20:05–20:21; 22:39–22:47).
Agenda items
Meeting called to order for Port Royal Budget Workshop #3 (2026) at 5:30 p.m.; staff took over the presentation.
Source/Context: "welcome to the town of Fort Royal's budget workshop number three, year 2026... is 5:30. We'll go ahead and call this to order." (16:42–16:52)
Staff presented the draft budget totals (about $11.81M) and displayed the page on the screen for council review.
Source/Context: "what we're looking right right now is a budget total expenditures of about 11,810,735 $735... I'll put it up on the screen, too." (17:50–18:08)
Staff explained a property tax exemption issue causing a revenue shortfall (~$358,747 pre-transfer) and described moving ~50% of funds from an expired TIF to cover the shortfall; they said county and school portions from the TIF were returned and the town's portion will be used.
Source/Context: Exemption shortfall and TIF use: "we had... about $358,747 prior to moving those dollars" and "use about 50% of it to balance that budget" (19:31–19:35; 19:19–19:28). TIF returned to county/school and town keeps its portion: "We've returned the dollars to the county, returned the dollars to the school district, and these are the the town returning its dollars to itself." (26:50–26:57)
Council and staff discussed personnel cost drivers including cost-of-living adjustments, other salary adjustments, retirement, FICA, and anticipated legislative increases to liability/coverage costs.
Source/Context: "there's a 5% increase 3% cost of living 2% adjustment and then across every single... personnel related line item whether it's retirement contributions FICA..." and "anticipate the legislative mandated increase to 600,000 to coverage a million." (20:05–20:21; 20:30–20:38)
Motions
None recorded.
Votes
None recorded.
Public comments
None recorded.
Action items
Source/Context: Staff: "we are reevaluating the stormwater utility fee based upon the capital program that's attached to that master plan" (31:09–31:26).
Source/Context: Staff: "development and site plan fees that actually reflect the cost to the town associated with permitting them... we're looking at what our fee structure is relative to the other municipalities" (31:35–31:50).
Source/Context: Staff: "we're looking at the fire service fee... if there's a way to do a police service fee, we're going to hopefully address that" (28:51–29:09).
Source/Context: Staff: "at the end of the year we have the the dispersements from the municipal association for the insurance programs and we're going to see where that lands us" (23:42–23:56).
Staff: "we've seen pretty good increases in compliance with the business license program...you're seeing your increases to... HNA hospitality and accommodation taxes... VRBOS" (23:49–24:35).
Official sources
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