Graceville Commission Holds Tentative Budget Hearing

The Graceville City Commission convened its first public hearing on the proposed 2025–26 budget, reviewing departmental allocations, revenues, and public concerns before giving the plan tentative approval.

City Manager Michelle Watkins presented a balanced budget totaling $3.89 million for general and water/sewer funds, alongside $19.55 million in reserves and restricted funds. The millage rate will remain at 4.000 mills, unchanged from the previous year. Increased taxable property values are expected to generate $427,168.60 in ad valorem revenue.

General fund revenues are projected at $2.9 million, water/sewer at $1.67 million, and special revenue funds at $19.5 million. The plan includes a 3% cost-of-living raise for full-time classified employees and a $500 bonus for those employees and two contract positions (fire and janitorial services).

Departmental Highlights

•Administration: Reduced by $10,941.16, partly through adjustments to liability insurance and Harvest Festival costs.

• Police Department: The overall budget remains steady but reallocates $62,373.44 from unused health insurance to vehicle maintenance, equipment, uniforms, and IT compliance costs. The department currently has five full-time officers and one reserve.

• Streets: Increased by $73,912.15, largely due to higher state gas tax estimates, bringing the road paving budget to $153,050.55.

• Fire Department: Up $8,287, anticipating higher utility costs at the planned new station.

• Cemetery: No major changes; approximately $10,000 remains budgeted annually for mower replacement.

• Recreation: Decreased by $53,674.80 after restruc- turing that moved the director’s salary under streets and public works. Funds remain for equipment up- grades at the Civic Center.

• Sanitation: Contract costs increased by $15,000, tied to consumer price index adjustments.

• Water and Wastewater: Higher chemical and operational expenses added $8,000 to water treatment and $57,389.45 to waste- water treatment.

Several residents raised issues during the comment period:

• Police staffing and services: Tim Welborn urged commissioners to reject the tentative plan, calling for reinstating officers, rene- gotiating the city’s phone contract, and adding code enforcement.

• Fiscal stewardship: Charlene Miller cited biblical principles of steward- ship, urging careful management of taxpayer funds.

• Records access and spending: Regina Wolfgang criticized delays in fulfilling public records requests, questioned IT and cemetery mapping expenses, and objected to associated fees.

• Police costs: Jerad Cremer questioned increases in police vehicle repair, equipment, and uniform budgets. Watkins cited aging fleet needs, state IT compliance requirements, and long-delayed uniform purchases.

• Phones and insurance: Bill Morrow asked about costs of city phone service and employee health insurance. Watkins noted the city uses AT&T but is exploring state options for savings, while Blue Cross Blue Shield remains the provider by law.

• Holiday decorations: Concerns were raised about more than $12,000 in Christmas décor spending over five years and asked if costs would continue rising. Watkins said the additions responded to public complaints and community requests, but final decisions rest with the commission.

Commissioners emphasized that the tentative budget is subject to revision. Mayor Walter Olds and several commissioners stressed teamwork and community input, while acknowledging disagreements.

Commissioner Terry Nichols noted that inclusion of funds in the budget does not guarantee spending, and urged frugality. Commissioner Curtis Pinkard said additional steps were being taken to provide commissioners with official city phones and emails to improve communication.

The tentative budget passed with unanimous support from commissioners. A final public hearing and adoption are scheduled for September 22, 2025, ahead of the October 1 state deadline for submission.

*A complete transcript of the meeting can be found in the September 18, 2025 edition of The Graceville News.

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