MINUTES PURCELLVILLE TOWN COUNCIL SPECIAL MEETING BUDGET WORK SESSION WEDNESDAY, MARCH 19, 2025, 6:00 PM TOWN HALL COUNCIL CHAMBERS COUNCIL MEMBERS PRESENT: Mayor Christopher Bertaut, Council members Erin Rayner, Susan Khalil (arrival at 6:01PM), Carol Luke, Caleb Stought, Kevin Wright COUNCIL MEMBER ABSENT: Vice Mayor Ben Nett STAFF PRESENT: Interim Town Manager Kwasi Fraser, Assistant Town Manager Diana Hays, Director of Finance Elizabeth Krens, Financial Analyst Linda Jackson, Town Clerk Kimberly Bandy CALLTO ORDER: Mayor Bertaut called the special meeting to order at 6:00 PM. The Pledge of Allegiance followed. PRESENTATION a. Interim Town Manager Proposed FY 2026 Budget Kwasi Fraser, Interim Town Manager, presented the proposed budget. ADJOURNMENT: At 6:35PM, Council member Stought moved to adjourn the meeting, which was unanimously approved. CLIL M. / Christopher Bertaut, Mayor KihauBandey Kimberly Bandy, Ton Clerk FY26 BUDGET HIGHLIGHTS FY26 OPERATING PLAN HIGHLIGHTS Proposed Budget: $35.9M Proposed Budget: $26.4M Operating Plan: $26.4M covering 5 funds General fund: $15.9M - $527,000 int targeted enhancements included Wastewater: $5.9M Capital Improvement Plan: $9.5M Water: $3.8M Parks & Rec: $805k Operating Plan & CIP- $35.9M Operating Plan $26.4M OP Pan Faiks ndRec w Water JP G nd ec PRraMile PRraMile FY26 ENHANCEMENTS HIGHLIGHTS FY26 CIP HIGHLIGHTS Proposed Budget: $527k Proposed Budget: $9.5M HR-N Merit:$139.3k Wastewater: $130k General fund: $3.9M Floodplain: $100k Wastewater: $3.6M Publicv Works: $79.5k Nater: $1.6M Facilities & CARP Vehicle: $30k Parks & Rec: $412k WaterE EPA: $25k Parks8 & Rec:$ $23.35k CIP-$9.5M Enhancements $5271 K EHR- Mertt Fachties CAAPV Vehide "PwAiminkMahnten Floodplain mPatae WsterD EPA W astrwater AraMille ArdMlle WATER FUND WASTEWATER FUND a FY26 is balanced as a result ofthe $616k meals tax transfer FY26 is balanced via the $1.1M meals tax transfer and use of from the General Fund. $300k ofr nutrient credit capital reserve fund. Cash exceeds fiscal policy target by $489k. Remaining $187k in nutrient credit proceeds will be fully 112% of annual expenditures and debt: service VS 100% policy. expended in FY27. Cashi is 14% below fiscal policy target (86% annual costs). Water Fund FY25 FY26 Adopted Proposed Wastewater Fund FY25 FY26 Adopted Proposed Operating Revenue 3,225,263 3,223,169 Plus Meals Tax Transfer 0 615,515 Operating Revenue 4,428,144 4,427,438 Plus Meals Tax" Transfer 0 1,143,098 Less Operating Expense (3,129,327) (3,057,747) Plus Use of Capital Reserve Fund 500,000 300,000 Less Debt Service (533,086) (760,337) Less Operating Expense (3,260,386) (3,368,286) Surplus/Deficit) (437,150) 20,600 Less Debt Service (2,251,237) (2,440,405) Cash Available above policy 573,885 488,813 Surplus/(Defict) (583,479) 61,845 Cash Available below policy (889,825) (825,049) 3 5 YEAR CIP PROJECTION FISCAL RESILIENCEAND DEBT MANAGEMENT > Stellar Credit Ratings: Fitch-AAA S&P-AAA Moody's-AA Plan was presented to Council during on. Jan. 28th (To be Revised) > 5-year period fori fiscal planning purposes, but FY26 budget Stable and Responsible Taxation appropriation will be for a single year ($9.5M) . Maintaining the reale estate taxr rate at S0 205 per $100, ensuring fiscal predictability for residents andi businesses CIPF Project FY26 FY27-30 5-Year Funding Strong Reserve Management Proposed Estimate* Total Sources Maintaining $8.3 million in reserves, exceedingf fiscal policy targets to safeguard long-t term financial stability General Fund 3,892,304 8,366,108 12,258,412 100% External (9p projects) Sources a Aggressive Existing Debt Reduction Strategy GeneralFund: Debt-free by: 2034, unlocking $1. 3Ma annually from tax payers. Parks & Rec 412,466 352,570 765,036 Grants, Cash Parks & Recreation: Debt eliminatedb by 2037, removing $107k annually. (3 projects) Water Fund: Debt clearedb by: 2038 removing $760ka annuallv Water Fund 1,580,000 27,014,000 28,594,000 Grants, Cash, Wastewater Fund: Debt retired by 2040, removing $2 4Ma annually (12 projects) Loan Future- Ready Financial Resilience Wastewater Fund 3,619,000 1,051,500 4,670,500 Grants, Cash, Strategic debt reduction, disciplined ese erve maragement and responsible taxation (5 projects) Loan position thet townt tor long-term growch and economic stabiliy Total CIP 9,503,770 36,784,178 46,287,948 Sinhjec rcdMile NEXT STEPS NEXT STEPS - EDITS TO PROPOSED PLAN Materials and deliberations include the FY26 Proposed Fiscal Plan book, 4 work sessions and presentations from the Town's financial advisors Straw Poll Votes on FY26 Budget Changes Each Council Member will have the opportunity Submit questions via email to Diana Hays to bring plan changes to the floor for straw poll votes Next Steps be offered Real Estate Tax rate adoption on Tues., March 25 (public hearing Compensating offsets should if was held on March 11) proposed changes increase the overall cost Additional Budget work: sessions on Wed., March: 26, April 2, Staff will incorporate approved plan modifications April9 Public Hearings on the FY26 Budget and the Master Tax and into the staff report and ordinances required for Fees willl be held Tues., Apr. 8 FY26 Budger,Adoption on Apr. 22 Adoption ofthe FY26 Budget is scheduled for Tues., Apr. 22 PardMille (end of presentation) ArcMile 21 22