Granite Shoals adopts $12.9 million budget, lowers tax rate
Granite Shoals adopted their 2026-27 fiscal budget. Staff photo by Maci Cottingham
Granite Shoals City Council approved a $12.9 million budget for the 2026-27 fiscal year Tuesday, Sept. 22, lowering the city’s property tax rate while increasing funding for street repairs and infrastructure improvements.
The budget projects $13.12 million in revenue, with street maintenance among the city’s spending priorities.
TAX RATE
Granite Shoals’ property tax rate for 2026-27, which begins Oct. 1, is $0.5339 per $100 of property valuation, down from $0.5424 last year. Despite the lower rate, the city expects to collect $362,751, or 5.28 percent, more in property taxes than last year’s budget, including $117,356 from new property added to the tax roll.
Homeowners could still see higher property tax bills due to increased property values.
According to the budget, the city projects approximately $7.3 million in total property tax revenue, including delinquent collections and penalties. Of that amount, $5.63 million will go to the general fund and $1.67 million to debt service.
BUDGET
The 2026-27 budget calls for $12.9 million in expenditures, with $13.12 million in projected revenue from property taxes, sales taxes, utilities and other sources.
The general fund includes approximately $7.48 million in expenditures, a 5.2 percent increase from last year’s $7.11 million budget. The city projects $7.53 million in General Fund revenue, leaving an anticipated surplus of approximately $47,000.
Street repairs are a major focus of the new budget, with approximately $690,000 allocated for Street Department operations. The city also expects $363,490 in dedicated street maintenance sales tax revenue, with $340,000 budgeted specifically for street paving.
According to City Manager Sarah Novo, the city is shifting additional resources toward materials and roadwork following investments in equipment during previous fiscal years. The shift is intended to expand the city’s ability to handle street and drainage maintenance using its own equipment and personnel.
The budget increases transfers from the utility fund to capital projects from $170,000 last year to $470,000. The capital projects budget includes $300,000 for street improvements.
According to Novo, both the general fund and utility fund are independently balanced, unlike previous years when the utility fund helped balance the general fund.
The budget provides city employees with a 3 percent cost-of-living adjustment, covers increased health insurance costs and adds an employer-funded telehealth plan.
DEBT
Granite Shoals budgeted approximately $1.7 million in debt-service payments for 2026-27, down from $1.85 million projected for the previous fiscal year.
According to Novo, continued debt reduction will help preserve the city’s borrowing capacity for future infrastructure projects, including wastewater improvements.