Georgetown reviews preliminary budget amid growing public safety demands and tax adjustments

During a recent workshop held on July 8, 2025, city officials in Georgetown discussed the preliminary draft budget for the upcoming fiscal year, highlighting key financial challenges and strategies to address community needs. The proposed budget aims to maintain essential services while navigating growth demands and budget constraints.

One of the primary topics was the city's insurance contribution, which is set at 8.6% to uphold an 85% funding ratio. Officials emphasized the importance of maintaining healthy reserves in the self-insurance fund, particularly as the city prepares for increased demands in public safety and infrastructure due to ongoing growth.

City leaders acknowledged the presence of many residents in the Georgetown area who do not contribute to property taxes, prompting a critical review of cost recovery in parks, recreation, and library services. This includes evaluating resident versus non-resident fees to ensure fair contributions to city services.

In an effort to cut costs without significantly impacting community services, the city proposed reducing maintenance in certain areas and closing the underutilized River Ridge pool. These decisions, while difficult, are aimed at prioritizing essential services amidst budgetary pressures.

The workshop also provided updates on the anticipated property tax rate, which is expected to decrease slightly. However, due to rising average homestead values, residents may see an increase of approximately $62 in their tax bills. The city is awaiting final assessed values, which will be confirmed later this month.

Sales tax revenue is projected to rise by 5% this year, bolstered by a positive audit adjustment. However, city officials cautioned that this increase may not reflect a long-term trend, as next year's estimate is more conservative at 3%. A significant concern remains the ongoing issue with Builders First Source, which has reportedly shifted sales tax revenue away from Georgetown, resulting in a substantial financial loss for the city.

As the city prepares to finalize the budget, officials are committed to engaging with the community for feedback and ensuring that the budget aligns with the needs and priorities of Georgetown residents. The next workshop is scheduled for August 12, where a more detailed budget proposal will be presented.