City Budget Bets on Enforcement, Growth
The City of Olney’s proposed 2026-27 budget anticipates stronger enforcement, more building activity and a rise in other fees and leases the City collects, while taking a cautious approach to sales tax revenue and other income the City cannot control.
City Administrator Andy Wolfe said some of the largest changes in the proposed $3.7-million budget reflect his expectations for City departments, anticipated development and an effort to make the budget more closely reflect what it actually costs to run Olney.
Permit revenue is projected to jump from $70,000 in the current budget to $73,000 next year. The City already had collected about $42,244 when the proposed budget was prepared.
“We are forecasting some larger projects kicking off in this budget year as well as a focus on code enforcement in regards to contractors working on projects without getting permits at City Hall before they begin,” he said.
The City is taking an aggressive approach to municipal court revenue. Fines and fees are projected at $80,000, up from a $55,000 budget this year, although collections were running at about $35,480 when the budget was prepared.
Mr. Wolfe said the projection reflects his expectations for the Olney Police Department.
“There’s a lot that goes into that, but in short, as the new City Administrator in Olney, I have high expectations of our PD,” he said.
Code enforcement revenue also is expected to rise from $500 to $2,000, another increase Mr. Wolfe linked to higher expectations for City departments, including code enforcement.
But the City is considerably more cautious about sales taxes, which are projected to rise by less than 2 percent, from about $626,826 to $637,549.
Mr. Wolfe said sales tax collections are affected by the economy, inflation, world events and consumer behavior — factors City Hall cannot control.
“I’d rather project a flat sales tax next year and be pleasantly surprised than budget for an increase that doesn’t happen and end up having to cut budgeted items,” he said.
Mr. Wolfe also has changed the way the City budgets for unexpected expenses.
The Administration Department budget falls by about $82,000, largely because Mr. Wolfe removed a $100,000 “contingency fund” included in the current budget.
Mr. Wolfe said he does not believe a broad contingency account is good municipal budgeting practice.
“A good municipal budget should show the public where their money is being spent,” he said.
Instead, he said the City’s fund balance should serve as its emergency reserve. If an unexpected expense arises, Mr. Wolfe said he should have to bring the matter to the City Council in open session and request a budget amendment.
Several other large changes in the budget are less dramatic than they initially appear.
The Parks Department includes $57,000 in capital spending, which will pay for two zero-turn mowers at about $11,000 each and a used three-quarter-ton pickup to replace an aging Parks Department truck.
Airport expenses also rise substantially, from about $36,720 to $61,720. Aviation fuel expenses increase from $13,000 to $32,000 because of higher fuel costs, Mr. Wolfe said.
The airport’s building and maintenance budget doubles from $4,500 to $9,500, but the City already had spent $8,875 this year. Mr. Wolfe said much of that expense is contracted mowing around the airport, meaning the new budget is bringing projected spending closer to actual costs.
The City will shell out $42,000 for E-force, the City’s new law-enforcement software system, which will replace Copsync, Mr. Wolfe said. The OPD’s evidence room tech costs dropped by 50 percent, and the police evidence and storage costs were also cut for 2027 by more than half. The OPD’s budget rose only modestly, to $1.032 million from $1.017 million. The City also saw its general liability, building, and vehicle insurance costs rise.
The City Council will hold a public hearing on the budget and the tax rate for fiscal 2026-27 and vote on whether to finalize it at its regular meeting on Sept. 14 at 6 p.m.