As town staff begins to put finishing touches on its budget plan for the 2016/17 Fiscal Year, it may be the last year revenues will stay ahead of projected expenses.

Beginning with the budget year 2017/18, projected shortfalls begin that are expected to accumulate to nearly $5.5 million by the 2020/21 fiscal year.

The projected shortfalls line out as follows: 17/18 – $636,342; 18/19 - $1.1 million; 19/20 - $1.7 million; and 20/21- $2 million.

Town Finance Director Craig Rudolphy has told the council the projections are based on an inflation rate of 2.5 percent, and expected state shared revenues do not keep up with that.

Staff has discussed with council ideas for addressing the projected deficits. By law, the town must present a balanced budget each year.

At a day-long study session in February Town Manager Grady Miller outlined the possibilities ranging from an increase in local sales tax to possibly adjusting the services in the law enforcement contract.

Miller told the council he does not want to cut any more staff.

The idea of hiring a consultant to make fiscal recommendations was discussed.

The initial General Fund budget figures for the 2016/2017 fiscal year are at $14.5 million.

The town does not have a primary property tax, which could automatically offset some inflation increases.