City finance staff and the mayor outlined a 'bottoms up' budget that preserves a two-month reserve, budgets modest revenue growth and reallocates some capital transfers; officials said the plan narrows a $40M request gap to about $5M.

The mayor presented an August draft budget and warned that state legislation limiting building-department fund use and a potential county EMS income-tax increase could change revenue assumptions; staff will update the draft once figures are available.

After staff explained variance lines, a $400,000 capital expenditure funded by cash and a revenue assumption of 12% tied to two incoming businesses, the board voted to approve the Type B FY2027 budget; concerns were raised about lower projected interest income and specific line-item changes.

At a May 26 special meeting, the Jackson Town Council reviewed a change log that increased projected use of general fund balance and debated whether to find more cuts or raise revenue, with the town manager and finance director asking the council to confirm amendments before a June 15 adoption. Key flagged items included joint-department increases and differing council views on sales-tax projections and property-tax options.

Budget coordinator Mary Monroe told the House Appropriations Committee that the chair’s substitute for House Bill 22‑89 assumes the February 2026 revenue forecast, removes a statutory 4.5% growth add‑on and relies on a mix of transfers and new revenue assumptions (including a millionaires tax and BSA transfers) to produce modest NGFO reserves while projecting a FY28 shortfall.

City staff told the council that, based on the preliminary tax roll and updated revenue assumptions, the FY2026–27 general fund can be balanced for the coming year, but the long-term forecast shows a growing shortfall without further action or revenue. Staff urged caution because certified rolls and legislative changes could alter final rates.

Town CFO presented a preliminary five‑year forecast that keeps the town structurally balanced but narrows operating surpluses, relies on conservative sales‑tax assumptions, and defers capital projects; councilmembers asked for scenario analyses and clarity on marketplace revenue assumptions.