VILLAS — Township Council introduced its proposed 2026 budget with no increase in the local tax rate. A public hearing and adoption are scheduled for 5 p.m. April 20.
The $36.2 million spending plan is down almost $3 million from last year and includes a tax rate of 63.3 cents per $100 of assessed value. The tax levy is $24,016,289, up $142,208 from last year.
Township Manager Mike Laffey said during the March 2 meeting that the township is $568,193 below the tax levy cap and $355,811.30 below the legal spending cap.
The assessed valuation increased by more than $25 million to $3.794 billion and the township ended last year with its highest surplus ever of $10,691,503, helping keep the tax rate stable.
Laffey said the surplus increase was largely due to new revenues from occupancy tax, interest earnings and construction code fees.
Township Council is applying $5.44 million in surplus to this year’s budget.
“I feel confident using this amount of surplus because we’re within the parameters of our fund balance policy,” Laffey said.
The tax collection rate for 2025 was 98.86 percent, which Laffey noted helped add more than $1.2 million to the surplus. Laffey added that the projected budget uses a 97.75 percent rate to compute the reserve for uncollected taxes in 2026. Other revenue collections totaled $1.25 million.
Laffey thanked Chief Financial Officer Jim Craft, his team, and the department heads for taking a hard look at the budget this year.
“We took our time to try and dig into it and do the best we can with all of the increased costs, utilities and other insurance and contracts that we’re presently involved in,” Laffey said.
Auditor Leon Costello said the budget will go to the state for examination.
“Two years you self-exam and one year they exam,” Costello said. “The one thing that’s interesting is we’ll see what happens next Tuesday when the governor gives her State of the State Address and budget presentation.”
Costello added that Gov. Mikie Sherrill has been warning about serious financial problems in the state.
“No new tax increases is what she pledges, so we’ll see what that means,” Costello said. “You’ve got $1.6 million to state aid, and people I’ve talked to said worst you can get is the same as you got last year.”
He added there could be amendments before the April 20 adoption.
By RACHEL SHUBIN/Special to the Star and Wave
