Greenville city leaders are nearing a final budget for the coming year, and Tuesday's discussion focused less on new spending than on a harder question: what can the city afford to put off?
The City Council reviewed the proposed 2026-27 budget during a workshop ahead of final budget and tax-rate votes scheduled for Sept. 8.
The financial picture remains tight. Taxable property values grew by less than 1%, while the value of new property added to the tax rolls declined by about 22%. The proposed property tax rate remains just below the city's no-new-revenue rate. Meanwhile, water and sewer rates are expected to increase by an average of 7.8%, and the city is anticipating a health insurance increase of roughly 5% to 6%.
That leaves council members weighing a list of needs that aren't currently funded against a desire to avoid a higher property tax rate or further reduce the city's cash reserves.
One percentage point, about $440,000
The proposed budget targets a general fund balance equal to 16% of expenditures. City policy allows that reserve to fall as low as 15%.
Finance Director Summer Spurlock told council that dropping the target by that additional percentage point would make roughly $440,000 available, although the exact amount would change as expenditures were added.
Spurlock cautioned against doing so. Greenville traditionally targets a 20% fund balance, and council has already reduced that target in recent budgets to accommodate additional spending. She said maintaining stronger cash reserves can also help when the city sells bonds, because rating agencies consider the city's financial position when evaluating its debt.
Council members discussed potentially adding a small group of currently unfunded needs without indicating much appetite for pushing reserves all the way to the city's minimum.
Among the deferred items are improvements to fire stations, replacement body armor for the fire department, library flooring, street equipment and planning work associated with future road improvements.
An $8 million road problem
Old Mill Road provided perhaps the clearest illustration of why some projects remain deferred even when city leaders agree they need attention.
Asked what happens to Old Mill if Greenville waits until a future street bond to rebuild it, staff said the city would largely continue maintaining the road in the meantime.
The reason is scale.
The last estimate for reconstructing Old Mill with its necessary drainage improvements was about $8 million. The project would also involve easements and work involving two bridges.
Council discussed the possibility of another road bond after existing city debt begins falling off around 2030.
Fire trucks aren't getting cheaper
The council also examined the $355,000 Greenville sets aside annually for fire apparatus.
Fire Chief Jeremy Powell said the program began as a way to accumulate enough cash over several years to purchase replacement trucks. Rising equipment prices and manufacturing delays have changed that strategy, with the money now supporting down payments and lease payments as well as future purchases.
Powell said a pumper that cost roughly $400,000 to $450,000 about 15 years ago would now cost about twice as much.
The department is also trying to reduce wear on its most expensive equipment. Rather than sending its $1.65 million platform truck on the large number of medical calls firefighters handle, Powell said the department uses a pickup-based squad when the larger apparatus isn't necessary.
Spending less doesn't always mean doing less
A roughly $160,000 reduction in contracted street work also drew council attention.
Staff said the reduction reflects Greenville's growing ability to perform asphalt work itself after purchasing paving equipment, rather than simply eliminating that amount of street maintenance.
City crews reported completing 128 pothole repairs in-house during July.
By the end of Tuesday's discussion, council appeared generally comfortable with the balance struck in the proposed budget, although staff will examine whether some smaller deferred projects could still be added.
The City Council is scheduled to consider final adoption of the budget and property tax rate on Sept. 8.
Listen above for KETR's full report from the council's budget discussion, including comments from city staff, council members and Greenville Fire Chief Jeremy Powell.
