Georgetown Considers Fees, Cuts to Close Budget Gap

Georgetown Eyes Options Amid Projected Budget Shortfall

Georgetown city leaders are proactively reviewing ways to close a projected budget gap that could reach $80 million by FY 2027-28 if no changes are made. At a City Council workshop on 05/13, City Manager David Morgan presented a three-year financial forecast showing expenses outpacing revenue—a trend driven by inflation, slowing growth, and rising service demands.

The Current Outlook

City projections for FY 2025-26 show general fund expenses exceeding $120 million, while revenue is expected to fall just below that mark. If this pattern continues, the city may need to dip into emergency reserves by FY 2025-26, potentially depleting them by the following year.

While Georgetown maintains strong reserves and high bond ratings, Morgan emphasized the importance of planning ahead. “This is not a proposed budget,” he noted. “This is a planning model that helps us prepare for long-term financial sustainability.”

Revenue Ideas on the Table

To strengthen future revenue, city staff is exploring options such as:

• Increasing out-of-city fees

• Adding new charges, such as library or utility processing fees

• Selling ads, merchandise, or placing ATMs in city facilities

• Considering a tax rate election in future years

Possible Cost-Cutting Measures

Expense reduction ideas include:

• Delaying capital projects and equipment replacement

• Scaling back recreation center hours and city events

• Reducing building cleaning and landscaping schedules

• Adjusting employee benefits and training programs

• Exploring four-day workweeks to lower facility costs

What’s Next

The finance department plans to submit a balanced FY 2025-26 budget later this year, with a public preview scheduled for 07/08. City officials say maintaining essential services—especially public safety—remains a top priority even as they weigh creative solutions.

For more budget updates and future plans, visit georgetown.org.