Fiscal Year 2025- 2026 Recommended Budget

Service enhancements include additional positions to support Solid Waste & Recycling with two Heavy Equipment Operators, a Water Resources Engineering Supervisor, and the transfer of two Police Victim Advocates from grant funding to the General Fund. Additionally, 8.6 FTEs were approved during FY 24-25 through transfers to operating funds and position additions, including completion of the Solid Waste & Recycling realignment, support for centralized project planning, the creation of the Department of Community Safety, among other initiatives. The budget also includes 2.375 FTEs in position reductions to support a balanced budget. More position change details can be found in the position change summary and highlighted on service area budget pages. In the last quarter of FY 24-25, a hiring freeze was implemented as a cost-saving measure due to projected expenses surpassing revenue. For FY 25-26, this strategy continues with a year-long hiring freeze on vacant positions deemed non-critical to service delivery. Exemptions from this freeze apply to sworn public safety personnel and telecommunicator roles. The budget includes funds for the continuation of the Police and Fire step programs for appropriate ranks. A 4% average merit increase for all benefited employees and a 4% step movement for general step employees are also included in the budget. An additional $200,000 is included for adjustments to the Fire Engineer position classification. Minimum starting pay for benefit eligible positions increases from $18.75 to $20.00, or $41,600 annually. The budget also includes required increases to health care premiums and retirement system contributions made by the City for all eligible employees totaling more than $4 million. Maintenance and Operations (M&O) costs, which include transfers from operating funds to capital projects or capital reserve funds, and debt service expenditures, increase from $433.5 million to $457.2 million, or 5.5%. Most increases are directly related to increased costs to maintain current service levels including more the $4.8 in contracted services and technology subscription costs. The FY 25-26 budget includes several transfers to other funds to support their operation. The General Fund includes transfers to support parking facility debt service and operations of $3.4 million, a $1.4 million increase. Transfers to the Solid Waste Disposal fund increase $2.5 million due to increased operating and contract costs. A transfer of more than $1.4 million to the Capital Leasing Fund for information technology support and improvement, and debt financing for major equipment replacement and purchases. The General Fund also includes transfers of $3.4 million for the Coliseum, $10.8 million for Guilford Metro 911, and more than $230,000 for Cemeteries operations. Capital outlay expenditures are budgeted at $28.1 million, about $2.2 million less than the amended FY 23 24budget. The Equipment Services Fund is projecting rolling stock replacement needs of $17.9 million in FY 25-26 as compared to $22.6 million in the current year. A number of large equipment purchases for Fire and Solid Waste were completed in FY 24-25. Additionally, equipment replacements that are not operationally critical will be delayed in FY 25-26. These savings will help defer approximately $2 million in General Fund lease charges. Standard equipment replacement is expected to begin again in FY 26-27.

Total Net Expenditures by Expenditure Category

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Recommended FY 25-26 Budget