Red Bay approves $3.6M budget

RED BAY – City officials are expecting a slight decrease in sales tax revenue for the upcoming fiscal year but anticipating a larger general fund budget by the end of the year.

Based on the city’s 2026 fiscal year budget passed by council members, officials are expecting the municipality to bring in approximately $3.6 million for the general fund.

While the city anticipated $3.7 million in general fund revenue for the 2025 fiscal year, the end number checked in at $3.5 million instead.

As for sales tax revenue, the city failed to meet its goal of $1.9 million for the 2025 fiscal year – falling short by around $82,000.

For the upcoming year, city officials are projecting those numbers to drop again as the budget calls for $1.7 million in sales tax revenue to make its way into the city’s coffers.

Mayor Mike Shewbart said while the city isn’t quite as bullish on its end year general fund amounts compared to last year, he said early indicators for the first month and a half have him optimistic the city will be in good shape by the end of 2026.

He believes hesitation from consumers over the national economy could be blamed for the lack of local spending, which could explain the decline in the city’s general fund last year.

“Our sales tax has been down in November and December and it sort of flattened out in January, so that gives us a little hope for the new year,” Shewbart said. “I think a lot of it has to do with the national economy and people being

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Mike Shewbart concerned with where things are headed and simply wanting to hold onto that dollar. We hope our state and federal governments can assure people things will settle down and get better.”

Last year, the city brought in revenue from alcohol sales within city limits for the first time after residents voted in November 2024 to allow for the sale of beer and liquor.

While the city has not yet calculated the total amount brought in by alcohol sales – as the ordinance to allow for such sales only went into effect in May 2025 – officials are projecting the city will bring in $15,300 to the general fund in 2026.

For the first time in its history, Red Bay will also reap the financial benefits of vape sales within city limits.

In the 2026 budget, the municipality is slated to bring in approximately $15,000. Shewbart said the hope is the city will be able to bring in more than what is currently allocated.

Given the number of travelers who come into town to have maintenance performed on their motorhomes by Tiffin Motorhomes, Shewbart said it’s possible the city could bring in more than what was initially projected in the budget when it comes to alcohol and vape taxes.

“We didn’t factor in a ton of money into either the alcohol or vape tax allocation, but we’re hoping to get a little more than we project,” Shewbart said. “You project the best you can on revenue and go from there. Tiffin is such a huge piece for our city and you hope those coming in from out of town will spend some of their money while they’re here.”

Among the more unique items added to this year’s budget is e a “quick response” vehicle to help out with local ambulance services.

Shewbart said there have been some instances where citizens – mostly those on the fringes of the city limits – have had to wait extended periods of time for first responders to reach their residence.

The vehicle will be owned and operated by the city and will serve as a “fill-in” when ambulances are not available or tied up with other patients.

“We’ve had some concern from our citizens with regards to ambulance service, so we put in the budget to get this truck to better take care of them,” Shewbart said. “It’ll be a good thing to have it not just for the citizens inside our city limits, but those on the outskirts of town as well if they need it.”

Overall, Shewbart said he is happy with the 2026 budget and is optimistic the city could exceed early revenue projections.

“It’s a guess on revenue and it’s a guess on expenses but we worked on it for a while and I’m happy with where we ended up,” the mayor said.