At its most recent meeting on April 16, Cayce City Council discussed the initial proposed budget for the upcoming 2025-26 fiscal year.

The current proposed budget has the city bringing in $18,769,237 in revenue and spending $18,964,227 for a deficit of $194,990.

This budget is not the final recommendation from the city administration but consists of proposals from city staff members.

This year marks the first budget process in which the city’s capital improvement plan and its funds are separate from the general operating budget. Both were discussed during the meeting.

Larger capital improvement projects will be funded separately using excess revenue after city expenses have been covered.

Unlike the utility budget, most of the general fund is made up of salaries and benefits, including health insurance, retirement and short-term disability insurance.

Of the proposed $18,769,237 budget, salaries and benefits account for $14,290,138.

Presenters also noted that inflation over the past year has played a major role, with the city seeing increases of 114% in liability insurance rates, a 16% increase in health insurance and an 18% increase in fuel and repair costs.

The biggest revenue sources are property taxes, franchise fees and business licenses. Property taxes provide $5.76 million, franchise fees $3.25 million and business licenses $2 million.

Other sources include services like sanitation and hydrant charges, grants and miscellaneous income from events, admissions and rents.

Beyond salaries and benefits, other major expenses include general insurance, employee travel, telephone service and uniforms.

City events like Christmas in Cayce and Soiree on State accounted for $145,500.

For the proposed 2026-30 capital improvement plan, projects involving courts, sanitation, police, fire and other departments total $1,279,641.

Proposals include updating the jury and judge’s chambers, buying toter roll carts for sanitation, replacing police vehicles, purchasing a new fire engine, upgrading phone service and conducting a space study for a new municipal complex.

Funding for the capital plans is expected to come from federal and community development block grants, property sales and transfers from the city’s general fund.

The final budget document is expected in about a month, after revenue procurement is complete.

The new fiscal year begins on July 1. The next regular council meeting will be held at Cayce City Hall on May 6 at 6 p.m. The public is welcome to attend.