Operating Budget 2025-2026

BUDGET PROCESS ( continued )

Community Engagement The Town has various committees and task forces that provide budget and capital project guidance throughout the year. The Town Council also engages citizens and relays their concerns and ideas to staff during the budget process. As part of the budget process, Town Council holds several public work sessions and a public hearing on the budget, tax rates, and fees each year. Property Tax Rate The annual tax rate is passed in April by Town Council with a minimum of five affirmative votes. An assessment of property values is performed by Montgomery County every four years. Citizens may submit an administrative appeal through the County and request an appeal hearing before the Board of Equalization. As required by State law, if the total assessment increase is greater than one percent excluding new construction, then the tax rate must be decreased to the revenue neutral rate or advertised as a tax rate increase. Once advertised, Town Council may approve a lower tax rate, but cannot pass a tax rate higher than advertised. Amending the Budget The original budget, and any necessary budget revisions made during the fiscal year, are authorized at the departmental level by Town Council. These revisions could take the form of a supplemental appropriation, emergency appropriation, reduction of appropriation, or transfer of appropriation from one department, office, or agency to another. The Department Heads have the authority to transfer amounts within a department, office, or agency, as long as the total appropriation for the department does not change. The Town Manager has the authority to transfer funds from the contingency line item to any department without Council approval. The procedure used to amend the budget is the same as the one followed in the original budget adoption process. The revised or amended budget is authorized by ordinance which requires public advertisement, an introduction with at least four affirmative votes of the Town Council, a scheduled public hearing, and an adoption vote by Town Council with a minimum of four affirmative votes.

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